Bangladesh Bank increased credit limit for livestock sector

Bangladesh Bank has issued new instructions regarding the refinancing scheme of Tk 5,000 crore for the agricultural sector. The new guidelines have increased the credit limit for the livestock sector.

On Tuesday (November 21), the Agricultural Credit Department of Bangladesh Bank issued a circular in this regard. The circular has been sent to the chief executives of all scheduled banks operating in the country.

According to the guidelines, a customer can now take a maximum loan of Rs 20 lakh from this scheme in the livestock sector. Earlier this loan limit was two lakh taka.

It is said that some banks have already provided large loans or investments in the livestock sector under the special incentive refinancing scheme in the agriculture sector. In order to benefit more genuine and marginal farmers under the scheme, the maximum limit for new loan or investment in favor of a customer in the livestock sector has been fixed at Tk 20 lakh.

Bangladesh Bank said that the other conditions and instructions mentioned in the two circulars and circular letters will remain unchanged.

A refinancing scheme of Tk 5,000 crore was formed in November 2022 with the aim of increasing agricultural production to ensure food security of the country. The duration of this scheme formed from the central bank’s own funds is till June 2024. Livestock sector was not initially covered under the scheme, but this sector was newly included in March this year.

Bangladesh Bank has issued the powers given under Section 45 of the Bank Companies Act, 1991.

The directive will come into effect immediately, the financial sector regulator said.

Mean/MH/MS