“We are overcoming the physical presence of our channels by introducing an embedded financing program with different Agri Fintech”

Syed Mahbubur Rahman, Managing Director & CEO Mutual Trust Bank

Historically, farmers had very few options on their grips to promote their agri-farming. Informal lenders and MFIs are still the major sources of borrowing for marginal farmers though banks are also scaling up agri-financing programs across the country. The agricultural sector contributes 11.22 % to our total GDP and food security has become a global challenge for the upcoming future.

MTB has been exceeding regulatory loan disbursement targets for the Agricultural & Rural credit sector for years and has also successfully met the last stimulus loan disbursement target set by Bangladesh Bank. We are focusing on horizontal growth by disbursing loans to as many  marginal & landless farmers across the country as possible. We are overcoming the physical presence of our channels by introducing an embedded financing program with different Agri Fintech, identifying Agri Clusters of Onions, Maize, Turmeric, Banana, Watermelon, livestock, and other crops in areas like Pabna, Natore, Lalmonirhat, Rajshahi, Naogaon, etc.

The government has already initiated different timely measures and policies to support the agri-financing program in our country and Bangladesh Bank is very successfully executing all these through different Financial Institutions. To attract lenders to the Agri Financing program, a few more policy support may have a positive impact. Low-cost Crop/Agri Insurance should be popularized in our country, a common satellite platform for lenders to locate the land, easy and effective weather forecasting news to farmers, and formulate an easy Digital financing program for Agri lending and Credit Guarantee Scheme to cover Agri Financing.