Agriculture Loan in Bangladesh: A Complete Guide for Farmers

Agriculture is the backbone of Bangladesh’s economy. To support farmers and increase agricultural production, the government and various banks provide agriculture loans in Bangladesh at low interest rates. These loans help farmers buy seeds, fertilizers, equipment, irrigation tools, and invest in crop, livestock, and fisheries projects.

What is Agriculture Loan?

Agriculture loan is a special type of financial support given to farmers for farming-related activities. In Bangladesh, this loan is mainly provided by government banks, private banks, and microfinance institutions under the guidance of Bangladesh Bank.

Types of Agriculture Loans in Bangladesh

There are several types of agricultural loans available in Bangladesh, such as:

Crop production loan

Livestock loan (cows, goats, poultry)

Fisheries loan

Farm machinery loan

Irrigation and land development loan

Each loan type is designed to support different agricultural activities.

Interest Rate of Agriculture Loan

The interest rate of agriculture loans in Bangladesh is relatively low compared to other loans. Government agricultural loans usually have 4%–8% interest rate, depending on loan type and institution. Sometimes farmers also get subsidized loans from government programs.

Eligibility for Agriculture Loan

To apply for an agriculture loan in Bangladesh, a farmer must:

Be a Bangladeshi citizen

Be directly involved in agriculture

Have land ownership or lease papers

Provide National ID card

Have recommendation from local authority or agriculture officer

How to Apply for Agriculture Loan in Bangladesh

Farmers can apply for agriculture loans by following these steps:

Choose a bank or financial institution

Collect loan application form

Submit required documents

Field verification by bank officer

Loan approval and disbursement

Popular banks providing agriculture loans include Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Sonali Bank, and other scheduled banks.

Benefits of Agriculture Loan

Low interest rate

Easy repayment system

Financial support for farmers

Increased agricultural production

Improvement of farmers’ lifestyle

Government Support for Agriculture Loan

The Government of Bangladesh and Bangladesh Bank regularly take initiatives to ensure easy access to agriculture loans. Special credit programs and refinance schemes are introduced to help small and marginal farmers.

Conclusion

Agriculture loan in Bangladesh plays a vital role in strengthening the agricultural sector and improving farmers’ livelihoods. With low interest rates and government support, farmers can easily expand their farming activities and contribute to the country’s economic growth.