Bangladesh bank (BB) has extended the loan repayment time to December 2024 for the milk production loans scheme.

As a result the farmers, who borrowed for cows and calves farms at 4 percent interest rate under the loans scheme of enhancing milk production, can repay the loans by December 31, 2024.

The Agricultural Credit Department (ACD) of BB issued a circular in this regard and sent it to the top executives of all the scheduled banks.

Read: BB extends relaxed loan repayment until Sept 30

The BB notification stated that the loan term of the milk production scheme has been extended till December 31, 2024. The repayment of loans refinanced by the banks from Bangladesh Bank against the disbursed loans and payment of interest subsidy to the banks has also been extended.

The other directions of the circular regarding the scheme issued earlier will remain unchanged.

The facility provided by BB, farmers involved in milk production and artificial insemination can now take loans from banks and specialized financial institutions for the purchase and rearing of cows and calves at 4 percent interest.

Read BB asks banks to provide special agri credit in flood-hit districts

This loan can be taken in single and joint names. A loan of Tk 40,000 can be taken for the purchase of a calf and Tk10,000 for rearing. As a result, a farmer can borrow a maximum of Tk2.0 lakh for a maximum of four calves. This loan is completely collateral free.

In order to make the country self-sufficient in milk, The BB formed a fund of Tk 200 crore refinancing program in 2015.