The interest free loan scheme of Janata Bank Limited has created huge enthusiasm among rural farmers, especially the marginal ones, who do not have access to bank loan for farming.

Under the scheme, Janata Bank disbursed Taka 9.65 lakh among 83 marginal farmers of Kutubdia in Cox’s Bazar and Taka 20 lakh among 159 farmers of Senbagh in Noakhali.

“I took Tk 10,000 from the Kutubdia branch of Janata Bank for rice and vegetable farming last year . . . I already repaid the money by selling the crops,” said Badal Karim who had to borrow money from rural lenders at high interest rate.

Badal Karim said he had to repay almost double to rural lenders for borrowing the money. He said he repaid the bank the entire amount last year because he did not have to pay any interest.

Like Badal Karim, Abdus Sobhan and Md Yasin of Arjuntala village of Senbagh upazila in Noakhali borrowed Tk 12,000 each from local branch of Janata Bank last year for vegetable farming.

“We had to borrow money from local NGOs at high interest rate but last year we took loan from Janata Bank and we had been able to pay back the amount because it was interest free,” they said.

Janata Bank launched the scheme in 2009 primarily to give interest-free loan to the marginal farmers and poor women of Aila-Sidr and monga affected regions under its Corporate Social Responsibility (CSR) initiative.

Gradually, it has expanded the scheme to other regions including the coastal belts and it has so far disbursed Taka 11 crore among 12,000 farmers across the country.