Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has slashed maximum ceiling on agricultural credit by 1.0 percentage points considering the declining trend of both interest rates on lending and deposits, officials said.
The banks are allowed to charge maximum 10 per cent interest rate on agriculture credit instead of 11 per cent, according to a notification, issued by the Bangladesh Bank (BB) on Wednesday.
The revised interest rate on agriculture credit will come into effect from July 1, 2016, it added.
“We’ve slashed the interest on farm credit aiming to facilitate agriculture activities across the country,” a BB senior official told BBN in Dhaka.
The BB slashed maximum ceiling on agricultural credit by 2.0 percentage points to 11 per cent from 13 per cent on December 21, 2014 on the same ground.
BBN/SSR/AD