Bangladesh Krishi Bank waives Tk 605 crore farm loans

Bangladesh Krishi Bank (BKB) has written off agricultural loans worth more than Tk 604.81 crore for 709,679 small and marginal farmers under the government's loan waiver programme, reducing their debt burden and restoring their access to formal credit.

The waived loans cover agricultural loans of up to Tk 10,000 under a government initiative aimed at supporting small farmers, according to a press release from the state-owned lender.

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BKB said it accounted for about 39 percent of the total agricultural loans waived under the nationwide programme.

Many farmers had been unable to repay their loans because of natural disasters, higher production costs, weak market conditions and other financial difficulties. As a result, they became ineligible for new agricultural loans.

To implement the programme, BKB carried out nationwide data verification, account reconciliation and other administrative procedures to identify eligible borrowers.

The bank said the initiative would restore affected farmers’ access to regular banking services and make them eligible for fresh agricultural loans, enabling them to invest in future crop production.

As the country’s largest agricultural lender, BKB disburses about 63 percent of total agricultural credit.

The bank said the loan waiver is expected to boost agricultural production, strengthen food security and improve the financial resilience of rural households.