# UCB and Bangladesh Bank Collaborate to Improve Rural Financing for Farmers and Entrepreneurs

*United Commercial Bank (UCB) and Bangladesh Bank (BB) have partnered to expand financing for farmers, rural entrepreneurs, and businesses, aiming to enhance agricultural production, food security, and employment opportunities in rural areas.*

August 18, 2026 · business

In a significant move to bolster the rural economy, United Commercial Bank (UCB) and Bangladesh Bank (BB) have joined forces to expand financing for farmers, rural entrepreneurs, and businesses. The initiative, announced in a UCB press release, aims to enhance agricultural production, strengthen food security, and create more employment opportunities in rural areas. This partnership is also expected to contribute to poverty reduction by improving access to formal financing for agriculture and rural economic activities.

Under the agreement, UCB will provide financing through BB’s TK 10,000 crore refinance schemes. These loans will support various agricultural activities including crop and agricultural production, purchase of agricultural machinery, fisheries, livestock, and other income-generating activities in rural areas. UCB plans to distribute these loans through its branches, sub-branches, agent banking outlets, and group-based lending channels to ensure that formal financing reaches even those with limited access to traditional banking services.

The loan tenure will be up to 18 months, with a grace period available where applicable. The interest rate at the customer level will be capped at 8 percent. Notably, the refinance facility cannot be used to repay or adjust existing loans or investments. BB Director (Agricultural Credit Department-2) AKM Saiduzzaman and UCB Deputy Managing Director Md. Ridwanul Hoque, along with Head of the SME and Agri Banking Division Mohammad Salim Chowdhury, attended the agreement signing ceremony.

UCB stated that the refinance facility would help increase the flow of finance into the agriculture and rural economy. Easier access to funding is expected to enable farmers to invest in production, encourage rural entrepreneurship, create jobs, and strengthen livelihoods. The bank also anticipates that the initiative will benefit marginal farmers and rural entrepreneurs by providing financing on comparatively easier terms and at an affordable interest rate.

This collaboration is a crucial step towards addressing the financial needs of rural communities. By providing accessible and affordable financing options, UCB and BB aim to stimulate economic activities in rural areas, ultimately leading to improved agricultural productivity and enhanced food security. The initiative underscores the importance of inclusive financial services in driving rural development and reducing poverty.

## Sources

- BSS

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Source: https://pulsetoday.com.bd/en/business/ucb-bb-join-hands-to-boost-rural-finance