Boosting growth via agri loans
What Bangladeshi banks offer to farmers
In recent years, agricultural and rural finance programs have been boosted as the private commercial banks (PCBs) along with state-owned commercial banks (SCBs), have come forward to disburse agri-loans in the country.
Harvesting progress: Agri loans for women
Bangladesh, a land nourished by fertile deltas, thrives on its agricultural sector. But beneath the swaying crops lies a reality often unseen which is the immense contribution of women farmers.
Connecting farmers to finance
In the pursuit of agricultural sector development, it’s imperative to enhance the accessibility of loans for marginal farmers.
Cultivating Prosperity
Agricultural loans serve as a cornerstone for rural farmers, playing a crucial role in sustaining a nation’s food security and rural economy.
Safeguarding food security
Bangladesh, despite its dense population and limited agricultural land, has successfully managed its food supply, largely due to the steadfast dedication and resilience of its farmers.
“Periodic amendments necessary to keep aligned with the overall economy of the country”
Agriculture is considered a major source of livelihood for most people in Bangladesh. Hence the role of agricultural credit is immense to accelerate agricultural activities besides introducing modern agricultural management all over the country.
“Meeting the working capital needs of the sharecropping or even the landless farmers helping them to come out of high-cost informal loans”
The financial services of Dhaka Bank are specifically designed for different farming groups to provide them with greater returns from their harvest and guard against exploitation from informal money lenders.
“Offering training on financial literacy can greatly enhance the effectiveness of agri-loans”
To better facilitate our farmers through agri-loans, financial institutions can adopt a more localized approach by understanding regional farming needs and tailoring loan products accordingly.
“We can better facilitate farmers through timely disbursements of agri-loans”
Farmers directly engaged in agriculture, livestock, fisheries, and forestry must be targeted and prioritized for agri-loan provision since agricultural production is imperative for our country’s economic growth.
“Loan products must be developed to cater to the specific needs of farmers”
For better facilitation of the farmers in our country, the introduction of smart and simplified loan application procedures with less paperwork and processing time is a prerequisite.
“We strive to empower farmers and foster financial literacy”
A robust agricultural sector is vital to our country’s food security and economic growth, which makes it important to support our farmers with financial facilities and protect them from informal lenders.
“Priority given to underprivileged and unbanked people in chars, haors, salinity-prone areas, and ethnic minorities”
Since the beginning of agri credit disbursement by the banking sector, the prime focus has been on facilitating farmers directly by providing all types of agri loans promptly.
“Policies aimed at risk mitigation can enable banks to extend more loans to underserved segments”
To better facilitate our farmers, we are focusing on enhancing access and simplifying the application process for agri-loans.
“We are overcoming the physical presence of our channels by introducing an embedded financing program with different Agri Fintech”
Historically, farmers had very few options on their grips to promote their agri-farming. Informal lenders and MFIs are still the major sources of borrowing for marginal farmers though banks are also scaling up agri-financing programs across the country.