Bangladesh Krishi Bank (BKB) on Tuesday launched a Tk 3.0 billion low cost credit scheme on the occasion of the birth centenary of Father of the Nation Bangabandhu Sheikh Mujibur Rahman.
Around 50,000 marginal poor will get accesses to the loan at 7.0 per cent simple interest, according to officials at the BKB.
Formed with the bank's own fund, the scheme is expected to facilitate the ongoing financial inclusion initiatives through bringing more unbanked people into the banking network, they added.
"It will help reduce income inequality and alleviate poverty particularly in the rural areas," Md. Ali Hossain Prodhania, managing director of BKB, told the FE while explaining the main objective of the progrmme. "It will also help materialise the dream of Bangabandhu."
Mr. Prodhania added: "Actually, we want to create fresh employment opportunities in rural areas through developing entrepreneurships with providing low-cost funds," the MD noted.
Seventeen borrowers received Tk 1.5 million at a launching ceremony of the scheme at the state-run specialised bank's headquarters in the capital on the day.
The BKB officials expected that disbursement of the loan will be completed by the end of this calendar year. Interested marginal poor, who normally are not eligible for the farm loan, will be entitled to get the loan under the scheme, they said.
The BKB introduced the loan to help the small and marginal farmers as well as small entrepreneurs, particularly women, to provide them with loans at a lower rate of interest and affordable terms and conditions.