Bangladesh Bank has formed a Tk200 crore revolving refinance scheme to provide loans on easy terms to landless and marginal farmers.

Besides, small traders and low income professionals affected by the natural disasters will also get the facility, said a Bangladesh Bank circular yesterday.

The borrowers will have to open a bank account with Tk10 initial deposit.

Under the scheme, a borrower can take up to Tk50,000 loan at 12% interest rate from banks who will borrow the money at 5% from Bangladesh Bank.

Microfinance institutions (MFIs) can also provide loans to their clients taking money from banks under the scheme. MFIs will charge 19% interest from the clients.

A farmer who has a total land of 2.47 acres or less will be able to take

loans from the revolving scheme.

The distributor banks will take the responsibly of loans recovery, the circular added.