Banks participating in the scheme will receive a refinancing benefit from Bangladesh Bank at one percent interest rate, the central bank announced on Monday.
Prime Minister Sheikh Hasina unveiled the incentive package for the agriculture sector to mitigate the impacts of a nationwide shutdown due to a coronavirus outbreak on Sunday.
Small and medium scale farmers in rural areas producing grains, fruits, flowers, fisheries, poultry farms, dairy farms will be eligible for loans from the fund, Hasina said.
"We reduced the interest rate to four percent after holding discussions with the prime minister. Everything has been done in accordance with her directive,” said Kazi Saidur Rahman, executive director of Bangladesh Bank.