Bank for Development and Agricultural Credit’s loan portfolio recorded EGP 19.13 billion, of which agricultural loans recorded EGP 6.8 billion at the end of November 2011.
Mohsen El-Batran, chairman of BDAC, said that t slated raising agricultural loans 10% annually, to help decreasing cost burden on farmers amid the increasing inflation rate.
El-Batran added that this increase will begin with the summer season in which strategic crops are farmed such as cotton, rice, maize and sugar cane. 90% of youth farmers will benefit from raising the minimum limit of loans, as they own less than 3 acres in the Valley and Delta, noting that these loans are supported for farmers as the interest rate does not exceed 5%.
BDAC has exempted cotton farmers from delay fines and administrative costs on loans given to cotton farmers in value to EGP 471 million, of which the bank will bear EGP 15 million cost. Administrative costs for customers who repay agricultural loan installments on time will be reduced by 50%. Subsidy on cotton purchasing for farmers will be increased by EGP 250 million granted by the Bank to spinning and weaving companies, El Batran added.
BDAC also raised lending categories for sugar cane crop. These loans will be paid within 10 days from the date of submitting all required documents.
