Bangladesh Bank (BB) has relaxed the rescheduling policy for short-term farm loans as it assumed that many farmers would be in dire straits in the coming days in the wake of increasing global prices of agricultural equipment.
Farmers will be able to reschedule their default loans without any down payment and enjoy a six-month grace period and the repayment tenure of the rescheduled loans will be three year, as per a BB circular issued on Tuesday, reports BSS.
The farmers who are facing certificate cases will also be allowed to enjoy the relaxed facility.
In such a situation, banks will have to stop the procedural process of cases or settle those based on agreement with the farmers.
The price of agriculture equipment has increased in the global market due to the volatile economic state of the world, which has fuelled the worth of the imported items.
In addition, the productivity of farmers should be geared up such that the price increase of agricultural items can be tackled in the domestic market, the BB said in the notice.
The latest circular will help entrepreneurs in the farm sector repay their loans smoothly, the BB said, adding that it will also keep the credit flow to the agriculture sector stable.