BB extends dairy loan program until December 2024

The Bangladesh Bank (BB) has extended the loan repayment term to December 2024 for the dairy loan scheme.

As a result, farmers, who have borrowed for cow and calf farms at an interest rate of 4% under the Dairy Improvement Loan Scheme, can repay the loans by December 31, 2024.

The Agricultural Credit Department (ACD) of the BB issued a circular in this regard and transmitted it to the senior managers of all listed banks.

BB’s notification stated that the duration of the dairy program loan had been extended to December 31, 2024. Repayment of loans refinanced by banks with Bangladesh Bank against disbursed loans and payment of interest subsidies to banks have also been extended.

The other guidelines of the circular relating to the plan issued previously will remain unchanged.

Thanks to the facility offered by BB, farmers involved in dairy production and artificial insemination can now take out loans from banks and specialized financial institutions for the purchase and breeding of cows and calves at 4% d ‘interest.

This loan can be contracted in your own name and in a collective name. A loan of Tk 40,000 can be taken out for the purchase of a calf and Tk 10,000 for breeding. Accordingly, a farmer can borrow a maximum of Tk2 lakh for up to four calves. This loan is completely unsecured.

In order to make the country self-sufficient in milk, the BB established a refinancing program fund of Tk 200 crore in 2015.

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