BRAC Bank has partnered with Bangladesh Bank on a BDT 10,000 crore refinance scheme designed to support the agricultural sector with low-cost financing, a press release said.

The institutions signed a Participation Agreement recently. The partnership is expected to boost agricultural production, strengthen food security, and create employment opportunities through expanded economic activity in rural areas. 

The agreement was signed at Bangladesh Bank’s head office. AKM Saiduzzaman, Director of the Agriculture Credit Department-2, signed on behalf of Bangladesh Bank, while SM Alomgir Hossain, Head of Cottage, Micro & Small Business (Unit-1), and Tapos Kumar Roy, Head of MFI and Agriculture Finance, signed on behalf of BRAC Bank.

The refinance scheme aims to channel greater funding into the agricultural and rural economy. Through the facility, participating banks can extend financing for eligible agricultural and rural economic activities, helping farmers and rural entrepreneurs access funds for productive purposes. Under the scheme, financing will support key sectors including crop and agricultural production, rural income-generating activities, agricultural machinery, fisheries, and livestock, in line with Bangladesh Bank’s guidelines.

BRAC Bank can now finance farmers under the scheme at a maximum simple interest rate of 7 percent, giving farmers and eligible rural borrowers access to comparatively affordable financing for their agricultural and income-generating activities.

Backed by its extensive branch network and focus on inclusive finance, BRAC Bank’s participation in the scheme is expected to support the expansion of agricultural and rural financing across Bangladesh.