Poor to get Tk 50,000-0.20m at 5.0pc interest rate

Talha Bin Habib | Published: December 12, 2015 00:00:00 | Updated: February 01, 2018 00:00:00

The government will start providing loans to the marginalised people for rearing cows from January 13 aiming to make the country self-reliant in milk and beef production, officials have said.
Prime Minister Sheikh Hasina will inaugurate the loan distribution programme in the capital on the day. Â
"Prime Minister Sheikh Hasina will open the loan distribution among the marginalised people on January 13, 2016 to help the country achieve self-sufficiency in milk and beef production," joint secretary of the ministry of fisheries and livestock (MoFL) Ali Noor told the FE. Â
He said that under the programme families, especially poor women in the rural areas, will get loans between Tk 50,000 and Tk 0.20 million at the interest rate of five per cent for artificial insemination of cows that will help produce milk and fulfil the country's demand for protein.
To push the move forward the Bangladesh Bank on September 1 last signed a participation agreement involving Tk 2.0 billion (Tk 200 crore) with twelve banks and a non-bank financial institution (NBFI) to boost dairy produce in the country.
The partner banks are Sonali, Agrani, Janata, BASIC, Rupali, BKB, RAKUB, Ansar and VDP, Karmasangsthan, BRAC, IFIC and Midland while the NBFI is the IDLC Finance Ltd.
As per the agreement all participant banks will disburse the allocated fund among the farmers at 5.0 per cent interest rate.
The official of the MoFL said the district/ upazila level livestock officials along with the banks would select right persons for the loans for rearing cows. Â
The grace period is 14 months from the date of issuance of the loan. The loan is repayable in 35 to 54 months since the date of taking it.
The central bank usually gives funds to the banks at a five per cent interest rate and the banks add four or five per cent more to it. But this time the finance ministry would subsidise the interest amount to be added by the banks to that of the central bank, said a high official at the MoFL.
He said that the local produce was now meeting one-third of the total demand. The country imports powder milk worth Tk 40 billion (4,000 crore) annually to meet the demand.
If the project (dairy) is successful, the people, especially children, will get nutrition and women will be economically empowered, since there is no alternative to improving the rural economy by ensuring supply of dairy milk for the people for reducing the dependence on imports substantially.
talhabinhabib@yahoo.com