Bangladesh Bank asks Banks to Prioritize Loans for Farmers Affected by Heavy Rainfall

Bangladesh Bank (BB) has directed all scheduled banks to give priority to farmers affected by recent heavy rainfall when disbursing agricultural loans under its refinancing scheme.

The directive was issued on Tuesday through a circular from the Financial Inclusion Department (FID), according to BSS.

Banks have been instructed to ensure quick loan disbursement to farmers in haor and other flood-affected areas where heavy rainfall has damaged crops and disrupted farming activities.

According to the central bank, farmers in Sylhet, Sunamganj, Habiganj, Kishoreganj, Netrokona and Moulvibazar have suffered significant losses due to adverse weather, making timely access to credit essential for restoring agricultural production and livelihoods.

The circular also asks banks to prioritize Krishak Smart Card holders when providing loans from the refinancing fund for marginal and landless farmers, sharecroppers, small account holders and micro-enterprises.

The initiative aims to help affected farmers quickly access working capital for crop rehabilitation, purchasing agricultural inputs and continuing farming operations.

However, BB clarified that eligible farmers must not be denied loans solely because they do not yet have a Krishak Smart Card.

The central bank said the measure reflects its commitment to supporting rural communities affected by climate-related challenges and safeguarding food production.

All other provisions of the existing refinancing scheme will remain unchanged, the circular said.