Bank Asia, BB partner to boost agri financing

Bank Asia PLC has signed a participation agreement with Bangladesh Bank to expand access to finance for farmers, rural entrepreneurs and businesses under the BB’s Tk 10,000 crore refinance scheme for the agriculture and rural sectors.

AKM Saiduzzaman, director of the Agricultural Credit Department-2 at Bangladesh Bank, and Shamim Ara Shimul, head of the Agricultural Credit Department at Bank Asia PLC, signed the agreement at the BB headquarters in Motijheel, Dhaka recently, according to a press release.

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The scheme has been designed to support agricultural production, strengthen food security, create more employment opportunities in rural areas and contribute to poverty reduction. Under the scheme, eligible farmers and rural entrepreneurs will be able to access financing at a maximum interest or profit rate of 8 percent per annum.

Bank Asia will distribute the loans through its branches, sub-branches, agent banking outlets, union digital centres, post bank and group-based lending channels, aiming to bring formal financing closer to farmers and rural entrepreneurs, particularly those with limited access to traditional banking services.