500 crore incentive to revive the rural economy

the rural economy

Bangladesh Bank has decided to launch an incentive package of Rs 500 crore for people returning to their villages due to the ongoing financial crisis caused by the Corona epidemic. A notification in this regard will be issued in the next couple of days. This information has been known from Bangladesh Bank sources.

It is learned that a large section of the low-income and low-income people of the city who lost their jobs due to the Corona epidemic are now living a difficult life in the villages without any employment.

This has created the fear of adverse effects on the rural economy. To address this situation, Bangladesh Bank has decided to bring them back under the package as part of a refinancing project for people returning to their villages under a program called ‘Homecoming’.

As a result of this initiative of Bangladesh Bank, the returnees will get loan at 6 percent interest from the said project. In addition, lenders will receive funds at zero point five percent interest. In other words, in case of loan disbursement, they will be able to take 5.5 percent interest to their income sector.

Borrowers who take a loan of Rs 1 lakh to 2 lakh will be given the opportunity to repay it within 18 months with a grace period of 3 months. If the loan amount is between 2 lakh to 5 lakh, the repayment period will be 2 years with a grace period of 6 months. In this case, the borrowers do not have to give any kind of security.

This refinancing project will expire on October 30, 2024. However, the process of debt collection will continue later.

The rural economy will be strengthened if employment is created for these returnees by the concerned officials of Bangladesh Bank. Bangladesh Bank has selected 6 sectors for lending. These are: local small capital business, purchase of small vehicles in the transport sector, light engineering, fisheries and livestock, setting up of service centers for information technology, planting of fruits and vegetables, purchase of agricultural machinery and construction and repair of houses.

State-owned banks do not have to enter into any participatory agreement with Bangladesh Bank to participate in this refinancing project. However, it will not apply to private or foreign commercial banks. In this case, they have to sign an agreement to disburse the loan.

In fact, since the beginning of the epidemic, Bangladesh Bank has launched 10 incentive packages worth Tk 1.60 lakh crore.