On Aug. 12, BNG CB issued agricultural, rural credit program 2025.
BNG CB published agricultural and rural credit policy and program for FY 2025-2026.
Follows BNG CB Aug. 2024 issued the agricultural and rural credit program, #224302.
Overview of Program
BNG CB published comprehensive agricultural and rural credit policy establishing BDT 39k crore target for agricultural and rural credit disbursement in FY 2025-2026, representing 2.63% increase from previous year's target of BDT 38k crore.
Policy requires banks to maintain minimum 50% of agricultural credit disbursement through own networks, with mandatory allocation of 55% to crops, 13% to fisheries, 20% to livestock, 2% to irrigation and agricultural machinery sectors.
New requirements include mandatory Credit Information Bureau (CIB) reports for any amount of agricultural credit through own networks, charge document exemption for loans up to BDT 3 lakh in fisheries and livestock sectors.
Contract farming arrangements expanded to enable agricultural credit disbursement through binding agreements between farmers and enterprises, requiring specific terms including crop details, land area, loan amounts, and repayment methods.
Import substitute crops (pulses, oilseeds, spice crops, and maize) continue receiving concessional 4% interest rate to encourage domestic production and reduce import dependency.
Agricultural Development Common Fund (BBADCF) established for banks failing to meet targets, requiring deposit of shortfall amount with 2% interest payment and 18-month repayment period.
Effectiveness
Policy becomes effective from Jul. 1, 2025, with banks required to submit detailed sector-wise credit disbursement targets by Aug. 31, 2025.
