CIB report must for agricultural loans: Bangladesh Bank

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Dhaka, Mar 23 - From now on, the CIB (Credit Information Bureau) report will have to be verified to approve any amount of agricultural loan or extend the loan tenure.

Earlier, a CIB report was not required for agricultural and rural loans up to Tk2.5 lakh.

On Sunday (Mar 23), the Agricultural Credit Department of Bangladesh Bank issued a directive in this regard.

According to the directive, if a loan is disbursed without verifying the CIB report, the bank will not be able to know even if the customer takes multiple crop and crop loans of a maximum amount of 2.5 lakh taka from different banks.

In this situation, the risk of defaulted loans increasing is created. Currently, collecting CIB reports has been made much easier than before. Banks are able to quickly collect the CIB report of the loan applicant using the CIB server of Bangladesh Bank.

The directive states that from now on, CIB reports will have to be verified for sanctioning any new loan or renewing existing loans in all sectors covered by agricultural and rural credit (excluding MFI linkage).

Other directives of the agricultural and rural credit policy and program for the fiscal year 2024-2025 will remain unchanged. The directive states that this directive will come into effect immediately. - UNB