Easy loans for salt workers at 4% interest

Salt producers will now get soft loans at just 4% interest with a discount under the central bank’s agricultural and rural credit policy.

The Agricultural Credit Department of the Bangladesh Bank issued a circular in this regard on Sunday.

According to the circular, the loan will be granted with a repayment facility interest rate during the salt harvesting season (November to May) in the appropriate coastal areas.

The loans will be disbursed on an individual and collective basis to the actual salt producers, in accordance with the directive.

According to central bank calculations, a salt producer spends a maximum of Tk 1,53,500 for an acre, including ground rent and water pumping costs.

The borrower must repay the loan within a maximum of 12 months from the month of loan disbursement.

Salt producers who own land can secure the loan under the repayment facility by submitting the copy of ownership documents and the salt produced as collateral.

Sharecroppers must be approved by the landowner and local dignitaries.

Salt producers only need to produce their farm equipment assistant cards and details of bank accounts opened with Tk10.

No concessional interest will apply if a loan is totally or partially unpaid at the end of the stipulated term of the disbursed loan. In this case, the normal interest rate determined by the bank will be applicable from the date of disbursement of the loan.

Banks shall apply for interest compensation at the rate of 4% from Bangladesh Bank within one month from the end of the respective financial year on the loan balance after collection and adjustment of the disbursed loans to reduced interest rate.

Bangladesh Bank will determine the amount of interest compensation due by on-site verification of 10% of borrowers. The central bank will pay the loss of interest to the banks from its own account and organize the replenishment of the Ministry of Finance.

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