The deadline for disbursement of loans under the Tk5,000 crore refinancing scheme has been extended till 31 March next year as the disbursement target was not met on time.
Bangladesh Bank's agricultural credit department issued a circular in this regard on Tuesday, mentioning that the deadline was extended to ensure smooth implementation of special incentive refinancing schemes.
Earlier, the loan disbursement deadline was extended from 20 September to 31 December.
According to central bank sources, about 85,000 farmers received loans worth only Tk2,089 crore under the scheme till October. As such, only 47.44% of the package has been implemented.
As a result of the outbreak of Covid-19, a refinancing scheme of Tk5,000 crore was formed on 13 April this year to provide working capital to the agricultural sector. The loan disbursement deadline was then set for 30 September.
Under this scheme, the interest rate on loans at the consumer level has been fixed at 4%. The loan term with a grace period of six months is one and a half years.
Apart from grain and crop sectors, these loans can be disbursed in seasonal flower and fruit farming, fish farming, poultry, dairy and livestock sectors.
Loans can also be given under this scheme to the institutions which buy and sell products directly from the farmers. In this case, no institution can be given a loan of more than five crore.