Bangladesh is predominantly an agricultural country with vast majority of people living in rural areas. Most of our people, for their living, are dependent on agriculture. Agriculture still contributes the lion share of the gross domestic product. But we could not as yet become self-sufficient in food production. We still import a bulk quantity of food grains from abroad to meet the deficit. This reliance on import has made us dependent on others. We must modernise our agriculture and establish more and more industries in order to minimise imports.
We can bring about revolutionary changes in the agricultural sector by adopting modern agricultural technology replacing the age-old traditional way of cultivation and increasing the use of firtilizer. This can only be done by collective efforts of both public and private sectors.
Islami Bank Bangladesh Limited is a welfare oriented Bank. It can play positive and important role in the economic development, progress and uplift of the country by investing in the agricultural sector. The Bank has, therefore, introduced "Agriculture Implements Investment Scheme" to provide power tillers, power pumps, shallow tubewells, thrasher machine etc. on easy terms to the unemployed youths for self-employment and to the farmers to help augment production in agricultural sector.
Objectives
q
To create opportunities for
self-employment of un-employed rural youths.
q
To help farmers to augment
agricultural production.
q
To assist in the introduction
and use of modern technology in the agricultural sector.
q
To play auxiliary role in
achieving self-sufficiency in food production.
Types
of Agriculture Implements
q
Power tillers
q
thrasher Machine
q
Any other agricultural
implements proposed by the branch and which has local demand.
These implements may be of any popular
brand. Any locally manufactured brand, which has large demand, is also
acceptable. The choice of investment clients shall be given preference in this
regard.
Investment
Area
Investments are allowed under this
Scheme through all branches of the Bank except the branches located in the
metropolitan areas. The command area of the concerned branch is within 15 miles
radius from its location.
Eligibility
of Investment Clients
q
Educated
or half-educated rural youths, educated or illiterate farmers and any person
ready to accept agriculture as business may apply for investment facilities
under this scheme. Preference shall be given to those applicants who have passed
S.S.C. or above.
q
The
applicant farmer should posses sound health and his age must be minimum 18 years
and maximum 50 years. Person who is willing to take agriculture as business, his
age must be between 18 to 45 years. If the applicant is educated or half
educated youth than his age must be between 18 to 35 years.
q
The
applicant must be physically and mentally fit and willing to operate the machine
himself.
q
Applicant
must be a permanent resident of the concerned area and be willing to stay and
work there.
Period
of Investment: Two Years
Mode
of Investment: Hire Purchase Shirkatul Melk.
Client's
Equity
Generally the investment client shall have to pay 20%
of the cost of agriculture implements/ equipment as equity. Equity shall be 10%
if the Bank undertakes any special project under the supervision of any
registered NGO approved by the Bank. The client shall have to bear the cost of
installation of the agriculture implements/equipment and related expenses.
Security
q
The
agricultural implements to be supplied to the investment client shall remain in
the name of the bank till the repayment/adjustment of the dues to the bank.
q
Collateral
security of immovable property equal to the amount of Bank's investment backed
by irrecoverable general power of attorney.
q
Client,
who is unable to offer collateral security of immovable property, shall have to
provide personal guarantee of two respectable persons acceptable to the Bank.
Guarantors should preferably be client's father/guardian or teacher.
Repayment
Procedure
The investment shall have to be repaid
in 4 instalments within a year. The instalment shall be fixed on the basis of
the sowing/transplantation and harvesting seasons of the crop. The branch
Manager shall decide both the amount and time of the repayment of instalment.
Risk
Fund
Under this scheme a risk fund shall be created by
debiting the concerned investment account an amount equal to 2% of the Bank's
investment at a time at the rate of 1% per annum for 2 years.
The risk fund will be utilized for the following
purposes:
1.
For meeting the cost of repair of the implements supplied if there is any
damage of the implements due to accidents during operations.
2.
To cover the loss if any against the investment subject to approval from
the head office.
Supervision
1.
The overall supervision of the investment shall be the responsibility of
the concerned branch.
2.
For supervision at the field level the Bank, may engage educated
unemployed youths of the concerned area as per rules of the Bank. Supervision
fee at the rate 2% over investment may be charged from the investment client for
this purpose.
Bi-monthly
Meeting
The concerned branch shall arrange
bi-monthly meeting with investment clients and shall evaluate the success of the
scheme and discuss problems and take measures to solve them.
Procedure
for Submission of Application
Interested investment clients shall
have to apply to the concerned branch in prescribed form of the Bank for
availing investment facility under the scheme. The bank shall consider the
proposal in the light of aforementioned terms and conditions and if found viable
then shall sanction and disburse the investment.
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