Dhaka: Bangladesh Bank (BB) has formed a Tk 10,000-crore refinance scheme to boost agricultural production, generate employment, and ensure national food security. The three-year scheme came into effect on June 8, 2026, offering credit to end-borrowers at a maximum interest rate of 8 percent. A total of 42 commercial banks have already signed participation agreements with the central bank to disburse loans under this facility.

According to United News of Bangladesh, the scheme allows farmers and rural entrepreneurs to access financing across crops, agricultural machinery, livestock, fisheries, and various rural income-generating activities. The central bank guidelines specify the maximum loan limits: Tk 30 lakh for crop cultivation, Tk 15 lakh for rural income-generating activities, Tk 20 lakh for agricultural machinery, and Tk 1 crore for fisheries and livestock sectors.

To support small, marginal, and sharecroppers, the scheme provides collateral-free crop loans of up to Tk 5 lakh per borrower against crop hypothecation alone. Bangladesh Bank expects the initiative to enhance credit flow to the agricultural sector, boost rural incomes, create new employment opportunities, and play a vital role in safeguarding national food security.