Bangladesh Bank has set a new agricultural loan disbursement target of Tk 600 billion for fiscal year 2026-27, raising it by nearly 54 per cent from the previous target.

Of the total, state-owned and specialised commercial banks will disburse Tk 204.95 billion, while private and foreign banks will distribute the remaining Tk 395.05 billion.

The central bank announced the new target on Monday at the Jahangir Alam Auditorium of Bangladesh Bank.

Presenting the details of the Agricultural and Rural Credit policy for the ongoing fiscal year, Deputy Governor Habibur Rahman said: "The target has increased compared with before, and although it will create some pressure, we still believe it is achievable."

Under the new policy, banks cannot charge any service fee other than documentation fees on loans of up to Tk 500,000 for the fisheries and livestock sectors, or on loans for salt cultivation on up to 1.01 hectare of land.

No collateral can be required for loans of up to Tk 500,000.

Women and marginalised farmers may also use social or group guarantees as alternative collateral instead of land or other immovable property.

The new policy brings the cultivation of Simul Mool, Ashwagandha, Mishri Dana, Roselle, Shatamooli, Yam (Gach Alu), and Blueberry, as well as organic fertiliser production using eggshells, under the purview of agricultural loans.

Fish and poultry hatchery operations and camel rearing have also been brought under agricultural credit.

To verify genuine farmers, banks will use certification from local agriculture, fisheries or livestock officials or the government-issued Farmer Card.

Habibur said agricultural lending currently accounts for 2.5 per cent of total bank loans. With the higher target, the share will rise to 4 per cent this fiscal year.

According to Bangladesh Bank data, banks disbursed Tk 428 billion in agricultural loans in FY2025-26, achieving 109.83 per cent of the target and benefiting 3.78 million people.

The target that year was Tk 395 billion, 14 per cent higher than the previous fiscal year.

Banks have been instructed to disburse 50 per cent of their agricultural lending target through their own networks.

The remaining amount may be disbursed through third-party linkage networks.

Bangladesh Bank spokesperson Arief Hossain Khan was also present at the press conference.