The Bangladesh Bank on Thursday extended the tenure of the Tk3,000 crore refinance scheme it had earlier announced for the country's agriculture sector by three months.
In a circular, the Agricultural Credit Department of the central bank said the scheme, which was due to expire on Thursday, has been extended till September 30 this year.
Under this scheme, farmers will get loans from banks at 4% interest. And the banks will get the same amount of refinancing facility from the central bank at 1% interest.
Banks will pay the central bank the principal amount along with the interest within the next 18 months from the date of refinancing.
On the other hand, at the consumer level in the grain and crop sector, the term of this loan will be a maximum of 12 months. However, in other sectors such as fish farming, poultry, and livestock sectors, the loan period will be 18 months with a grace period of 3 months.
Loans taken under this scheme can in no way be used to adjust borrowers' old debts.
The directive also said that banks should ensure disbursement of at least 30% of the allocated funds in the grain and crop sectors.
However, if a farmer or a customer defaults in any bank or financial institution, he/she will not get a loan under this scheme.