Govt waives Tk 10,000 loans for 12 lakh farmers

The decision was taken at a cabinet meeting held today at the Bangladesh Secretariat, chaired by Prime Minister Tarique Rahman.

Briefing reporters after the meeting, Cabinet Secretary Nasimul Ghani said the waiver will apply to loans taken in the grain, crop, fisheries and livestock sectors, in line with the government’s election manifesto.

He said the main objective of the initiative is to ensure social security for poor and marginal farmers and strengthen the backbone of the country’s agricultural sector.

According to the Cabinet Secretary, around 12 lakh farmers will directly benefit from the decision. Both the principal amount—up to Tk 10,000—and the full accrued interest on such loans will be waived.

He said the move will relieve small and marginal farmers of debt burdens, encouraging them to invest more actively in agricultural production.

“The money that farmers would have spent on loan installments can now be used to purchase quality seeds or adopt modern irrigation technologies,” he said, adding that the absence of debt pressure would allow farmers to begin the next cultivation season with renewed enthusiasm.

The waiver is also expected to improve farmers’ credit records and creditworthiness, enabling them to access fresh agricultural loans from banks at lower interest rates and reduce reliance on high-interest loans from local moneylenders.

Officials believe the reduced debt burden will encourage greater engagement in crop production, fisheries and livestock, ultimately boosting national agricultural output and lowering dependence on imports.

The Cabinet Secretary noted that the immediate impact of the loan waiver could include reduced rural-to-urban migration and easing rural inflationary pressures, reports BSS. 

According to Bangladesh Bank, as of February 25, farmers owed approximately Tk 1,550 crore, including interest, to public commercial banks, specialised banks and private commercial banks.