Farmers hit by floods can postpone repaying loans for six months

The central bank has suspended collecting on loan instalments from farmers affected by flash floods in the northeast of the country for the next six months. Indeed, it has asked banks to speedily disburse fresh loans to help them continue their agricultural production.

On Monday, the central bank issued a circular on providing facilities to affected farmers in the crops, fisheries, poultry and livestock sectors in Sylhet and Sunamganj, Moulvibazar, Habiganj, Kishoreganj and Netrokona.

According to the circular, affected farmers in the six districts will not have to pay back bank loan instalments for the next six months and will also get the same benefit in repaying their loans to microfinance institutions (MFIs).

Furthermore, their loans can be rescheduled with some discount on the down payment, said the central bank instruction. 

However, considering the amount of loss to the farmer, the loan can also be rescheduled without a down payment, it added.

Furthermore, to assist in rehabilitating affected farmers, the regulator asked commercial lenders to take necessary steps to provide loans for poultry and cattle rearing and cattle feed production in backyards.