Agricultural Bank Loans for Primary Teachers

Public primary school teachers in Bangladesh often manage their households on modest and fixed incomes. Many of them work close to their homes or within their own local communities, which deepens their family and social responsibilities. Alongside their teaching duties, a significant number of teachers seek supplementary sources of income to maintain financial stability. Common initiatives include dairy farming, cattle fattening, poultry and duck rearing, fish cultivation, nursery development, and small-scale trading. In addition, ensuring higher education for their children frequently requires substantial financial resources.

Taking these practical needs into account, Bangladesh Krishi Bank has introduced a dedicated loan scheme for government primary school teachers, designed to provide accessible and affordable credit support.

At present, there are nearly 375,000 government primary school teachers across the country. A large proportion of them are eligible to apply for this scheme, provided they meet the stipulated criteria. Through this programme, teachers can obtain loans at comparatively low interest rates, enabling them to invest in productive ventures, meet urgent family expenses, or plan for long-term financial obligations without resorting to informal or high-interest borrowing.

Loan Ceiling

Under the scheme, eligible teachers may borrow up to BDT 1,000,000. Any government primary school teacher who fulfils the required conditions may submit an application for this loan.

Eligibility Requirements

Applicants must satisfy several basic conditions to qualify:

• The applicant must be a government primary school teacher.

• The application must be submitted to the Bangladesh Krishi Bank branch through which the applicant’s salary and allowances are disbursed.

• The applicant must have completed a minimum of three years of service and must have at least three years of service remaining before retirement, including the period up to PRL.

• Teachers facing ongoing criminal cases, departmental proceedings, show-cause notices, or administrative investigations are not eligible for this loan facility.

Nature of the Loan and Interest Rate

The loan is provided as an advance against salary. The prevailing interest rate is 9 per cent per annum, subject to revision from time to time in line with bank policy. A one-time processing fee of BDT 500 is also applicable.

Repayment Period

Repayment begins from the month following disbursement. Borrowers may repay the loan in up to 60 equal monthly instalments or within the remaining duration of their service, whichever is shorter. This flexibility is intended to ensure manageable repayment without undue financial strain.

Application Procedure

Applicants must submit the prescribed application form along with a recent photograph, an attested copy of the national identity card, a no-objection certificate from the competent authority, salary and allowance certification, a declaration confirming the absence of disciplinary cases, and, where required, an undertaking permitting deduction of instalments directly from salary.

Illustrative Instalment Schedule

The monthly instalment depends on both the loan amount and the repayment tenure. An indicative schedule is provided below for clarity:

Education sector stakeholders believe that this targeted loan programme not only enhances the financial security of primary school teachers but also actively encourages self-reliance, entrepreneurship, and productive investment within local communities.