Cabinet Approves Waiver of Agricultural Loans up to Tk 10,000
The first meeting of the Cabinet has approved a proposal to waive agricultural loans of up to Tk 10,000, including interest. In line with the Election Manifesto 2026, the government has extended this relief to the agriculture and fisheries sectors.
The decision was taken at a Cabinet meeting held at the Secretariat on Thursday, February 25, chaired by Prime Minister Tareq Rahman. Previously, during the tenure of former Prime Minister Khaleda Zia, agricultural loans up to Tk 5, including interest, had also been waived.
According to data from Bangladesh Bank, approximately Tk 1,550 crore in loans disbursed to farmers through state-owned, private, and specialized banks will come under this waiver program. It is expected that around 1.2 million farmers will directly benefit from the initiative.
The government claims that the decision will enable small and marginal farmers to be freed from debt burdens and focus more on productive activities. Funds previously allocated for loan installments can instead be invested in improved seeds and modern technology. In addition, farmers’ credit records are expected to improve, making it easier for them to obtain bank loans at lower interest rates in the future.
The government also hopes that by reducing the debt burden, farmers will be able to resume cultivation in the next season with renewed enthusiasm. This, it believes, will increase national agricultural production and reduce dependency on imports.
DBTech/SH/EK/OR
