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Since nationalization in 1972 and the Bank's involvement in financing agricultural sector in 1977, Agrani Bank Limited has been reinforcing efforts of the government to meet its strategic objective of increasing production, output and employment through undertaking different agricultural credit programmes / projects. Some of these programmes / projects are outlined below for understanding the role of Agrani Bank Limited in increasing agricultural production & poverty alleviations 1. Crop loan programme : To help increase food grain and other crop production of the country by way of providing credit to farmers, this program was under taken in 1977. Up to June/2007, an amount of TK.1294.36 core has been disbursed in favor of 26,07,855 borrowers. Recovery rate is 80% (cumulative). 2. Crop Diversification Project: This Program was undertaken to achieve self-dependency on food production and to fulfill the demand of balanced diet of our people. The project is running with the help of Bangladesh, Canada and Netherlands Government. An amount of TK. 8.77 core has been disbursed among 9079 borrowers up to June, 2007. Cumulative recovery rate is 76%. 3. Shrimp Culture Programme ( General): This credit program was introduced by the Bank in 1980. This particular credit program is designed to increase shrimp production by providing loans to shrimp cultivators in Cox's Bazar, Khulna, Satkhira, Bagerhat. Disbursement up to June, 2007 is Tk. 112.85 core. among 7883 borrowers. Cumulative recovery rate is 93%. 4. Semi -intensive shrimp culture programme: For production of more shrimp by using modern technology, semi intensive shrimp culture program was introduced in 1993 with the aim of gaining more foreign currency. In initial phase credit facilities were extended for shrimp production only but subsequently its coverage was extended to the fresh water areas of the country. This loan is treated as industrial credit and all related facilities are enjoyed by the borrowers. Up to June, 2007 an amount of Tk. 7.80 crore has been disbursed among 213 loanees. Cumulative recovery rate is 80%. 5.Fisheries Financing Programme: This programme was undertaken in 1978 , aiming to provide credit for sweet water fish culture in re-excavated ponds. Upto June, 2007 a total loan of Tk. 6.85 crore has been disbursed among 3,063 borrowers. Cumulative recovery rate is 89%. 6. Credit for Irrigation Equipment: Since 1977, the Bank is providing credit to the farmers to purchase irrigation equipment ( DTW, STW, Rower pump, Treadle pump etc) in order to help increase crop production by utilizing both surface and underground water through irrigation. An amount of Tk. 13.16 crore has been disbursed to 5,376 borrowers up to June, 2007. Cumulative recovery rate is 93%. 7. Agricultural Equipment Project: This program was undertaken in 1989-90 to increase food production by using modern technology. An individual or a group of farmers can buy tractor/power tiller under this loan program. An amount of Tk. 2.92 crore has been disbursed to 504 borrowers up to June 2007. Cumulative recovery rate is 89%. 8. Credit Scheme for Bananas Cultivation: To boost up cultivation of Banana in the country, this scheme was introduced in 1980, Upto June, 2007 a total of Tk. 3.00 crore has been disbursed to 1715 borrowers. Cumulative recovery rate is 83%. 9. Credit to Salt Growers: To increase salt production by providing credit to salt growers of the coastal areas of Chittagong and Cox's Bazar Districts, this program was undertaken by the Bank in 1977-78 . Up to June, 2007 Tk. 2.42 crore has been disbursed to 6131 borrowers. Cumulative recovery rate is 77%. 10. Daridra Bimochon Karmasuchi (DABIK) : In collaboration with the Ministry of Youth and Sports, this program was undertaken in 1990 to work in 10 selected Police Stations. Since November, 1995, however, the program is being implemented as the Bank's own program and the management of the Bank decided to involve the senior executives like DGMs & AGMs to implement this program in their own villages or in areas of their choice under their supervision. Landless rural poor owning land (including homestead) upto 0.50 acre can avail of credit facilities being a member of the 5-member group formed under this project. A wide range of activities are being financed under this program viz. mini poultry, beef-fattening, rural transport, handicrafts, small business, tailoring, fishery, nursery, vegetable production, food processing etc. Credits are extended for a maximum amount of Tk.10,000/= without collateral and the interest rate is 10%. Up to June, 2007 around 31,122 members of the groups formed under the project have availed of the credit facilities amounting to Tk.20.91 crore and recovery rate is 77% (cumulative). 11. Productive Employment Project (PEP): This project was undertaken by the Bank in 1988 in association with Bangladesh Rural Development Board (BRDB) with financial assistance from Norwegian Agency for Development (NORAD) and Swedish International Development Agency (SIDA). The main objective of the Project was to develop the socio-economic condition of the rural poor of 20 thanas of Faridpur , Rajbari, Madaripur, Gopalgonj and Shariatpur district . NORAD/SIDA provides 33% to 50% and Bank provides 50% to 67% of the credit fund. Maximum limit of credit under the project for individual is Tk.6000 for the first time and Tk. 12,000 for the 2nd time and onwards. Maximum limit of credit under the project for group was Tk. 1,00,000 . No collateral is required to avail of loan under the project. All loans sanctioned under the project was maximum period of one year, for special cases loan period was 18 months. Rate of interest under the project was 16% per annum. A total amount of Tk.195.86 crore has been extended as loan to around 3,37,162 group members up to project period and recovery rate is 99% (cumulative). Upto June, 2007. The project is closed as on June, 2002 . It may mentioned here that after the completion of the project in June/2000, an agreement was signed on 31-07-2000 between Agrani Bank and BRDB. According to the agreement, from July /2000 the Project was run by BRDB. BRDB is to recover and return the outstanding amount of Bank's portion . 12. Marginal and Small Farm Systems Crop Intensification
Project ( MSFSCIP ) - IFAD Loan no.-194-BD.
This project was undertaken by the Bank along with other NCB's in 1990 in association with Bangladesh Bank, Rangpur Dinajpur Rural Services (RDRS) GTZ, and IFAD. Credits provided by the Bank are re-financed by Bangladesh Bank out of the credit fund provided by IFAD while GTZ provides the technical assistance to the concerned institutions involved in implementation of the project. RDRS provides field services in formation & promotion of the Self Help Groups (SHGs) comprising of 15-20 beneficiaries. The project is being implemented in 9 Thanas of Kurigram District. The primary objective of the project is to establish a sustainable linkage between the SHGs and the Bank so that the rural poor become bankable. Under the project, credit facilities are being extended to Self Help Groups of Marginal and Small Farmers both for collective and individual activities in the form of Seasonal Agricultural Loan (SAL), Agricultural Investment Loan (AIL), Non-Agricultural Investment Loan (NAIL). Loans are collateral-free with a maximum ceiling of Tk.8,000/= at individual level and Tk.80,500/= at collective level and the rate of interest is 12% . So far a total loan of Tk 7.62 crore has been extended to 1058 groups upto June, 2007 and the recovery rate is 85% (cumulative). 13. Swanirvar Credit Programme: This Programme was launched during 1979 in association with Swanirvar Bangladesh under " Dheki Loan Programme " initiate to help distress village women. Its objective is to help initiate income generating activities for attaining self-reliance as well as employment generation in order to improve standards of living of rural poor.It finances cropping, small business, poultry, rice processing and puffing etc. Besides, it helps creating awareness about literacy and family planning, encourages group meeting and group savings and helps in loan repayment.This is a one year credit facility for Taka 5,000/- with 11% interest and being implemented in 72 thanas through 122 branches. Loans are disbursed through groups formed by Swanirvar Bangladesh. 228630 borrowers have availed of this credit facility amounting to Tk. 80.67 crore upto June, 2007 Recovery rate is 82% (cumulative). 14. Financing in small scale cottage industries: To finance those persons who have already started small scale cottage industries in different areas of the country, Bank has undertaken this program in 1991 with a view to increase their income. The district committee specially formed for this program under the leadership of BSCIC, recommends the genuine loans proposals and the Bank with proper assessment and scrutiny sanctions the loans. The rate of interest under this scheme is 13.75% and the maximum loan repayment period is 3 years. Upto June, 2007 a loan of Tk. 0.74 crore has been disbursed to 590 loanees. Recovery rate in 66% (cumulative). 15. Rural Finance Project ( RFP): This Project was undertaken in 1979 by the Bank in collaboration with Bangladesh Bank and USAID, this program extends credit facilities to small and landless farmers for various income generating activities in rural areas. Upto June, 2007 an amount of Tk. 35.43 crore has been disbursed to 80245 borrowers. Recovery rate is 88% (cumulative). 16. Shoshya Gudam Rin Prokalpa : This program was undertaken by the Bank in 1988. The main purpose of the project is to assist farmers in retaining crops stored in godown as pledged goods during peak season when prices of the crops remain lower. Upto June, 2002 an amount of Tk.7.98 crore has been disbursed to 20012 borrowers. The rate of interest under this scheme is 12% and the maximum loan repayment period is 9 months. Recovery rate is 100% (cumulative). 17. Small Enterprises Development Project (SEDP, BGD-041): This project was undertaken by the Bank in May 1995 in association with NORAD to extend credit facilities in 40 thanas in greater Faridpur and Mymensingh Districts for establishment of micro enterprises. Under the project, 50% of the credit fund is being provided by NORAD and 50% by the Bank.The objective is to improve socio economic conditions of the project areas through creating employment opportunities. A wide range of micro-enterprises are being financed under this project such as rice mill, oil mill, food processing unit, flour mill, nursery, repairing workshop, hatchery, fishery, weaving, handicrafts etc. So far, 44043 entrepreneurs have received credit under this project amounting to Tk. 192.32 crore upto June, 2007. Recovery rate is 95% (cumulative). 18. Self Employment Programme for the Unemployed Youth: Under this programme unemployed youths, trained in different crafts by the Department of Youth Development /BMDC or other organisations are provided with loans to become self employed in their respective field of expertise. Upto June, 2007 an amount of Tk. 2.90 crore has been disbursed among 1676 borrowers. Cumulative recovery rate is 94%. 19. Financing NGOs for On-lending to rural poor: Agrani Bank has pioneered in extending loans to NGOs for on-lending to groups of rural poor for various income generating activities. The NGOs which are in shortage of credit fund may avail of loan facilities at an interest rate of 11%. Upto December, 2001 an amount of Tk.3.39 crore has been disbursed to 4 NGOs. Recovery rate is 87% (cumulative). 20 Netrakona Integrated Agricultural Production
and Water Management Project:
This is an Agrani-IFAD co-sponsored project undertaken in 1995 with the objective of increasing the standards of living of the small and marginal farmers and women of Netrakona District through raising their income and preventing their landlessness. Under the perview of the program Bank has extended its services directly to the target group members and through the NGO's concern. So far an amount of Tk.2.37 crore have been disbursed to selected 6 NGO's for on lending to the target group members and Taka 4.17 crore has been disbursed to 7503 target group members by Bank directly. Recovery rate is 61 % (cumulative). The Project period has ended on 30-12-2000. 21. Credit for Rural Transport : This programme was introduced in 1981. Main purpose of the project is to purchase and made different vehicles used as principal mode of transport in rural areas, such as Bullock/ Buffalo carts, Rikshaw-Van, Boat etc. A total loan of Tk.2.38 crore has been disbursed among 2426 lonees under this programme upto June, 2007. The rate of interest under this scheme is 11% and the maximum loan repayment period is 3 years.Recovery rate is 85% (cumulative). 22. Bank loan programme in small scale poultry farms : With a view to produce ducks & chickens to a great extent in our country, this programme has been introduced in 1990. Mainly loans are disbursed under this programme to those persons who have been trained up in farming centres conducted by livestock development complex. Upto June, 2007 an amount of Tk. 0.55 crore has been disbursed to 360 borrowers. Recovery rate is 78% (cumulative). 23. Agricultural Diversification and Intensification Project (ADIP) : This project has been undertaken by Agrani bank with the assistance of IFAD. The total project cost is proposed to be US$ 31.20 million out of which US$7.00 million is earmarked for credit . Remaining US $ 24.20 million will be utilised in Agricultural Development, Rural Infrastructure, Community Development etc. The credit portion is mainly for crop diversification but special emphasis will be given to vegetable production. Gazipur , Tangail , Narsingdi and Kishoregonj ditricts have been selected primarily as project area. Duration of the project is proposed to be 7 years. Loan Agreement has been signed between Government of Bangladesh and IFAD on 27-05-98. Subsidiary Loan Agreement also been signed between Government of Bangladesh (Finance Ministry) and Agrani Bank Limited on 15 -05 -2000. Upto Dec, 2006 an amount Tk. 2.13 crore has already been disbursed to 10 NGOs out of 22 enlisted NGOs. Recovery rate is 96% (cumulative). 24. Kurigram Poverty Alleviation Project (KPAP): RD-5 project i.e Productive Employment Project (PEP) was implemented jointely by BRDB and Agrani Bank Limited with the financial assistance from SIDA and NORAD since 1988. The project was implemented in 25 thanas of Faridpur , Rajbari, Madaripur, Gopalgonj Shariatpur, and Kurigram district . SIDA withdrew financial support under the project from July/97. But considering the fact that Kurigram district as one of the poorest area of the country on request of the Government of Bangladesh NORAD agrred to provide financial assistance in Kurigram district as "Kurigram Poverty Alleviation Project (KPAP) " following the PEP Model from July/97. The project is covering 9 thanas of the district. Agrani Bank Limited was covering 5 thanas under the project where Agrani Bank Limited has branches . The credit fund ratio under the project between NORAD and Bank was 50: 50. All the activities of PEP have been transferred to KPAP from July/97. All though the project period ended on June/2000 but the credit activities under the project continued till June, 2002. An amount of Tk. 32.91 crore has already been disbursed among 61150 borrowers upto June, 2002. Recovery rate is 91% (cumulative). It may mentioned here that the Project has been handed over to BRDB from October /2000. It may mentioned here that after the completion of the prject on September/2000 an agreement was signed on 12-02-2001 between Agrani Bank and BRDB . According to the agreement from October/2000 the Project will be run by BRDB. BRDB will recover and return the outstanding amount of Bank's portion . 25. Khudra Uddyog Prakolpo This project is undertaken by the Bank in June'97 as its own program. The main objective of the project is to establish small scale industries, facilitate employment opportunities for the unemployed by engaging them in income generating activities. Groups consisting of five members of same mentality and locality will be considered for loan under this program. Yearly income of the group members should be less than Tk 30.000/=. Field assistants will identify the target group and will provide training. Maximum loan ceiling is Tk. 80,000/=. No collateral is required for loan amounting to Tk. 50,000/=. Equity participation is 10% for each loan . A risk fund is to be formed by deducting / depositing 10% of the loan amount . Loan upto Tk. 25,000 can be sanctioned by branch manager and above Tk. 25,000 can be sanctioned by the zonal head . The rate of interest under this scheme is 8% and the maximum loan repayment period is 3 years. An amount of Tk.12.20 crore has been disbursed upto June, 2007 among 6790 borrowers. Recovery rate is 88% (cumulative). 26. Agro-based Industrial Loan: Agro-based industrial establishments are playing a pivotal role with a view to recouping the shortfall of protein-related foods as well as promoting the production of milk and baby foods. Hopefully, the setting up of these industrial establishments has at once paved the way for caring huge foreign Exchange to a substantiate extent. The Government has emphasised the need for establishing agro-based industry. Under this sector credit is being disbursed to Fisheries financing, Semi intensive shrimp cultures shrimp - carp hatchery and nursery Dairy, Poultry, such & programes. A total amount of loan Tk 142.67 crore has been disbursed among 523 project upto June, 2007. Cumulative recovery rate is 69%. 27 Special Micro- Credit Programme (SMCP): Agrani Bank has undertaken a Special Micro-Credit Programme (SMCP) to finance in small farm and other income generating activities with a view to engaging unemployed youths, distressed women and landless rural poor through extending short and medium term credit . The main purpose of the program is to increase income provide nutrition to the target group and to prevent unemloyment. A wide range of activities are involved under this program viz. Mini dairy , beef fattening, poultry, handicraft , tailoring, fishery, nursery , grocery, small cottage industries etc. Loan upto Tk.50,000/- is collateral free. Disbursement of loan may be made to the borrowers on individual as well as group basis. There are provisions to involve NGOs for group development and loan recovery. For this purpose service charge and prizes are allowed to the NGOs concern. Bank officials also will get prizes for loan disbursement and loan recovery. This program has been started from 2000 - 2001 financial year. So far an amount of Tk. 33.79 crore has been disbursed among 27082 lonees upto June, 2007 Cumulative recovery rate is 82%. 28. Goat rearing Programme for poverty alleviation. As per the Instruction of the Honourable Prime Minister, Peoples Republic of Bangladesh this Credit programme has been taken in 2001-2002 Financial year by this Bank to remove the poverty of poor people, unemployment problem and earned foreign currencies. Under this credit programme unemployed youths, those have got training under the Fisheries and Livestock Ministry will get the loan as priority basis. This programme has to b e implemented by the 118 branches of 50 Upa-Zillas in 25 districts. The rate of interest of this programme is 10%. Under this credit programme the loanee who will be able to pay their dues in time, will get 2% rebate facilities on the chareged interest. Concern Upa-Zillas Comittee will select borrower and fixed up the loan amount to each borrower. The ceiling of the loan under this credit programme is Tk. 30,000/- to 75,000/- ( not over Tk. 1,500/- per goat) The period of loan is 3 years with 1 year grace time and loan should be repaid by the borrowers with four half yearly instalment. Under this Programme Agrani Bank has disbursed Tk. 13.63 lac to the 17808 loanees as on june 2007. Cummulative recovery rate is 69% as per the latest instruction of the Government, this programme will be implemented by the branches of this Bank all over the country. In order to rapid implementation of this programme, Agrani Bank has published attractive advertisement through the different the National Dailies. 29. HERBAL NURSERY & HORTICULTURE PROGRAMME
FOR POVERTY ALLEVIATION.
This programme has been taken in 2001-2002 Financial year by this Bank under the Instruction of Honourable Prime Minister's Principal Secretary of Bangladesh in order to expansion of Harbal and Unani treatment, Social plantation and poverty alleviation all over the country. This programme will be implemented through the branches as per Head office instructions. Under this credit programme, the unemployed youths having trainings and experiences of nursery and plantation will get the loan as priority basis. It is a mid-term loan. The highest ceiling of Tk. 20,000/- per bigha and Tk. 50,000/- per project for Herbal Nursery. For Herbal Horticulture the highest ceiling of Tk. 20,000/- per acre and Tk. 50,000/- per project and the rate of interest is 8% . The period of loan for Herbal Nursery is 18 months and Herbal Horticulture is 7 years from the date of disbursement respectively. So for an amount of Tk 3.36 crore has been disbursed among 3539 borrowers upto june 2007. Cummulative recovery rate is 79% 30. Employment Generation Project for the Rural Poor The Employment Generation Project for the Rural Poor (EGPRP) came into operation upon signing of a Loan Agreement (IFAD Loan#378-BD) in 1995. The Project was designed to reinforce the efforts of the Government of Bangladesh (GOB) to meet its strategic objectives of increasing output and employment through nationwide development of small enterprises, to which it accords high priority. The project's goal is to create a productive micro-enterprise sub-sector providing profitable self-employment for rural people, supported by public and private sector structures and processes which lead to a favorable climate for increasing investment in, and improving management of, micro-enterprises. The project is to contribute to the goal through four objectives: a) To establish 9,500 potentially, technically and financially viable micro-enterprises in the hands of rural family entrepreneurs, employing about 70,000 skilled and unskilled laborers b) To establish within Agrani Bank Limited an efficient and sustainable programme of services which meets the needs of its clients and facilitates the application of local financial resources for investment in micro-enterprises. c) To establish private sector financial intermediaries and advisory services to develop the market for credit among micro-enterpreneures and to assist them to identity, plan, finance and operate micro-enterprises d) To develop replicable models of micro-enterprises which can be disseminated throughout Bangladesh. Loan Delivery System Through Agrani Bank Limited Agrani Bank Ltd., through its designated Branches, directly delivers credits to entrepreneurs on the basis of their financial and personal standing and experience. Through Advisory Service Advisory services of NGO's or private institutions are to be used for scouting potential micro entrepreneurs, assisting them in preparing business plans and introducing them to Agrani Bank Limited for delivery of loans. Through Credit Retailers Agrani Bank Limited, through authorized retailers like NGO's, indirectly deliver loans to those entrepreneurs who are graduated from poverty level through participating in Income Generating Activities under Poverty Alleviation Programs and who have good prospects for entrepreneurial success but cannot meet Agrani Bank Limited's criteria on equity contribution. They are expected to be direct clients of the Credit Retailing Agencies. Eligible Micro Enterprises Agro-processing enterprises meant for paddy, flour, edible oil, cotton, fruits, vegetables etc. Manufacturing enterprises like those related to handicrafts, metal, wood, plastic, garments, food, chemical products etc. Service Enterprises like those related to restaurants, tailoring, laundering and any other type that contributes to rural employment generation. Lending Terms & Conditions Target Group: The Target Group for ownership/ operation of micro-enterprises consists of four sub-groups: 01. Owners/operators of existing micro-enterprises who have proven managerial and technical skills in self-employment and who wish to expand, upgrade and diversify their business. 02. Persons who have acquired their skills and capacity to operate micro-enterprises after working as apprentices or skilled workers in existing micro-enterprises and who are now eager to establish the same type of micro enterprises themselves. 03. Persons capable of graduating from their existing level of income through their present employments under various Poverty Alleviation Schemes supported by NGOs and are now interested to enhance their income generating activities. 04. The unemployed landless who fall into two categories: (a) Persons, such as graduates from universities or schools of higher education and capable of starting commercially viable micro-enterprises after undergoing supplementary training (b) Those preferring self-employment to waged employment. 
Repayment terms of all loans are flexible in term of practical cash flow situation. The Credit Retailers, however, may apply their own terms and conditions for realizing loans from the ultimate borrowers. Loan Supervision As loan sanctioning authority, under this Project, is delegated to the Bank Branch and Zonal levels, the concerned Bankers supervise performance of each and every loan case and advise the borrowers on proper management of cash flow and repayment of Loans. The Bankers also assist in establishing linkages with marketing channels and provide technology dissemination services available within the reach of the project. Progress of the Project
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