Crop loans come under CIB reporting

The outstanding crop loans of the agriculture sector have come under Credit Information Bureau (CIB) reporting system of the central bank from now.

The Bangladesh Bank (BB) has asked all banks to report the outstanding crop loans ranging from Tk 1.0 and any amount to the CIB, according to a notification issued by the central bank on Monday.

However, it is not necessary to collect CIB inquiry report for sanctioning such fresh loans amounting up to Tk 0.25 million, it added.

The banks that provide agriculture loans will have to ensure that defaulters cannot be eligible for fresh credit, according to the notification.

"We've taken the latest measures so that it contributes to the ease of doing business ranking of the World Bank," a BB senior official told the FE while explaining the main objective of the notification.

He also said lenders are empowered to sanction the crop loans up to the prescribed limit without CIB inquiry reports, which help hassle-free credits to the marginal farmers.

The CIB was set up on August 18, 1992 at the central bank aiming to minimise credit risks through reducing the volume of non-performing loans.

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