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500 crore scheme of Bangladesh Bank

Bangladesh Bank has launched a scheme worth Tk 500 crore to create employment and alleviate poverty among the people who have lost their livelihood in the city due to the Corona epidemic. Under the refund scheme called ‘Return Home’, people who have lost their jobs due to the Corona epidemic will get loans under this scheme.

On Monday (January 3), the Agriculture Department of Bangladesh Bank issued a circular regarding the formation and management of the fund.

The circular, issued to the heads of all scheduled banks in the country, said that a significant number of working people in the urban areas had suddenly lost their jobs and were forced to return to rural areas due to the Ecovid-19 epidemic. Most of these people are now living in villages. Being forced to live an inhuman life. It is imperative to bring these people under the incentive package facility announced by the Prime Minister. Otherwise, there is a risk of adverse impact on the rural economy.

It further said that if it is possible to create suitable employment in the villages for these people, the rural economy will be strengthened. As a result, it will have a positive impact on the overall economy. In this context, in order to make the income generating activities in the rural areas more dynamic, it is necessary to ensure the flow of low interest loans. To this end, a refinancing scheme of Rs. The decision has been made.

It is learned that the amount of that fund can be increased if necessary. The source of this fund is Bangladesh Bank’s own fund. The scheme will be valid till December 31, 2024. However, the collection activities from the customer level will continue after the expiration of the scheme.
State-owned commercial and specialized banks will participate in the scheme. Apart from this, all the private and foreign banks who are willing to participate in the program will be able to participate in the program by applying to the head office of the Agricultural Credit Department of Bangladesh Bank.

The circular further said that the agriculture credit department would allocate funds in favor of the banks on the basis of the targets of the banks for disbursement of agricultural and rural loans, loan disbursement capacity, etc. After reviewing the capacity of the participating banks to disburse loans from time to time under this scheme, Bangladesh Bank will be able to re-determine the amount of funds allocated as required later.

In addition, the refinancing demand submitted after the disbursement of the loan at the customer level will be reviewed and the same amount of funds will be provided in phases.

Under the scheme, participating banks will be able to disburse and collect loans at customer level through their own network i.e. branches, sub-branches, agents, mobile financial services. By appointing Outsourcing Facilitators (one per branch) as required, the facilitator will be able to avail the assistance required for loan disbursement at the customer level. However, NGOs, micro credit institutions or any other similar organization cannot be appointed as facilitator agent in this loan disbursement program.

Under this scheme, if the borrower is not a defaulter, he will be able to take a new loan again after repaying the loan. However, the loan taken cannot in any way be used to reconcile the old loan of the customer.

Meanwhile, participating banks will get refinancing facility from Bangladesh Bank at the rate of 0.5 percent interest or profit rate. And at the customer level the interest or profit rate will be a maximum of 6 percent (simple interest rate). That interest rate or profit rate will be applicable to all customers. At the same time no security deposit can be taken in case of loan disbursement.

Small Capital Local Business, Purchase of Small and Medium Vehicles in Transport, Small Engineering Industries, Fisheries, Cattle, Goats, Poultry, Information Technology Service Centers and other service delivery activities, Construction or Renovation of Homes, Vegetable and Orchard, Agriculture Purchasing of machinery and marketing of crops also stimulates activities in the rural economy such as small businesses, especially rice threshing, making chira or muri, purchasing boats, bee keeping, purchasing sewing machines, making artificial jewelry, making candles, employment of physically challenged and poor women. In case of creation, loan can be given under this scheme. Priority should be given to those who have received training from government agencies.

Apart from this, women borrowers or entrepreneurs have to provide at least 10 percent loan or investment in the loans disbursed under the scheme. At the customer level, the loan amount is Tk. 2 lakhs. The loan period with a grace period of 3 months will be a maximum of 2 years or 24 months. The loan amount is more than Tk 2 lakh but up to Tk 5 lakh with a grace period of 6 months the term of the loan will be maximum 3 years or 36 months.

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