The Bangladeshi government has launched a service providing interest-free loans to benefit livestock and fishery farmers in the country. Maximum loan amounts are set at BDT 50,000 (USD 654) for cattle and buffalo farming, BDT 40,000 (USD 523) for goat and sheep farming and BDT 20,000 (USD 261) for poultry farming. Rather than disbursing funds directly to farmers, government officials will use 75 percent of the loan amount to buy the animal, with the remainder set aside to feed it. Farmers will be given a one-year grace period before any payments are due. A budget of BDT 600 million (USD 7.85 million) has been allocated for the project.
By Kristha Abores, Research Associate
Sources and Additional Resources:
[1] “Interest-free microcredit for farmers,” http://www.bdnews24.com/details.php?id=208946&cid=2
MicroCapital.org article, October 5, 2011, “MICROCAPITAL BRIEF: Bangladesh Bank Issues Guidelines on Mobile Microfinance,” https://www.microcapital.org/microcapital-brief-bangladesh-bank-issues-guidelines-on-mobile-microfinance/
MicroCapital.org article, May 16, 2011, “MICROCAPITAL BRIEF: Bangladesh Supreme Court Dismisses Attempt by Dr Muhammad Yunus to Remain as Managing Director of Microfinance Institution (MFI) Grameen Bank,” https://www.microcapital.org/microcapital-brief-bangladesh-supreme-court-dismisses-attempt-by-dr-muhammad-yunus-to-remain-as-managing-director-of-microfinance-institution-mfi-grameen-bank-2/
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