Regulatory Alerts2020-04-27
Added · Updated
Agricultural Loans at 4% Concessional Interest Rate in Crop Sector to Mitigate Novel Coronavirus Crisis
Bangladesh Bank instructs all scheduled banks to provide agricultural loans to farmers at a 4% concessional interest rate for the cultivation of all cereal crops, cash crops, vegetables, and tuber crops, in addition to existing import-substitute crops. This scheme is effective from April 1, 2020, to June 30, 2021, with banks receiving a 5% interest-loss reimbursement from Bangladesh Bank for actual losses. Banks must re-determine existing interest rates to 4% from April 1, 2020, for eligible loans and claim compensation at the end of the respective fiscal year. The concessional rate will not apply to overdue arrears, for which the normal interest rate will be applicable from the date of loan disbursement.
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