Bangladesh Bank (BB) has instructed all state-owned commercial banks (SCB) to give interest-free loan to the marginal farmers and poor women of Aila-Sidr and monga affected region under their Social Corporate Responsibility (CSR).

The central bank dispatched the order following the successful implementation of a credit programme by Janata Bank in those regions, sources said. During a recent meeting with SCBs and specialised banks, the central bank asked all SCBs to follow the model of Janata Bank in this regard.

“Marginal farmers of the Aila and Sidr are leaving farming as they are failing to maintain this profession through borrowing from rural lenders at high interest rate. Janata Bank has set a rare example by giving these farmers interest free loan under its CSR programme,” said BB’s Executive Director SM Moniruzzaman.

“As BB wants to effectively implement the programme of Janata Bank, we have asked all SCBs to implement this programme in a limited scale,” he said, adding, “If all the SCBs come forward, this interest free loan programme would help these poor farmers stay in their areas and involve in farming.”

Janata Bank launched interest free loan scheme under its CSR programme in the financial year 2009-10 and it disbursed Tk 3.0 crore among 3,120 marginal farmers in the financial year 2011-12.

Janata Bank has targeted to disburse Tk 5.0 crore in the current fiscal year (2012-2013). Talking to BSS, Md Zikrul Haq, Deputy General Manager of the Department concerned of Janata Bank, said the bank initially constituted a revolving fund to give farmers interest free loan.

News: The Daily Sun/Bangladesh/16th-Dec-12