BRAC Bank, RRF to provide credit facility to farmers
BRAC Bank has recently teamed up with Rural Reconstruction Foundation (RRF) to provide credit facility to marginal farmers.
This partnership is a result of the agreement between BRAC Bank and the United States Agency for International Development (USAID), Feed the Future (FtF); Bangladesh Rice and Diversified Crops (RDC) Activity to support the farmers. Both parties agreed to disburse loans through the Microfinance Institutions (MFIs) network for the project, and thus, RRF has come on-board, said a press release.
RRF, established in 1982, is a non-profit social welfare organization and specializes in micro-financing. As of June 30, 2019, RRF has Tk 4,750.27 million outstanding loans in the micro-credit and agriculture sectors to some 181,225 borrowers and 233,502 individual members.
Keep updated, follow The Business Standard's Google news channel
This agreement will lead RRF to provide a fresh credit facility to 1,000 farmers, including 800 female farmers, in the USAID FTF zone.
BRAC Bank will ensure necessary financial services to RRF for providing an uninterrupted credit facility to the farmers in 21 districts under the FTF zone. The bank will also support RRF in establishing safety measures and practices by providing hand sanitizers, face masks, and gloves to create a safe environment for the farmers. It will cut the fence for the farmers and encourage them to avail of formal banking services.
Through this agreement, the bank aims to provide financial services in the form of credit for crops which fall under profitable rice-based cropping pattern in the FTF zones.
Syed Abdul Momen, Head of SME Banking, BRAC Bank, said, "This brings a wonderful opportunity for us to reach out to the marginal farmers in the FTF zone and introduce them to the banking facilities. We are pleased to collaborate with RRF, and we hope to harness the waves of financial inclusion in the southern part of the country."
Philip Biswas, Executive Director, RRF, said, "We are delighted to partner up with BRAC Bank to offer credit for crops to our farmers. It will certainly benefit the farmers to take a turnaround from the consequences that resulted from Covid-19 pandemic."
