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Dedicated Credit Line – Another ray of hope for the maize farmers

On 30 October, 2011, NCC Bank of Patgram and Gangachara Branch gave loan to a group of maize farmers under contract farming system in a ceremony.

Poor and marginal maize farmers have limited technical ‘know-how’ and access to quality inputs required for maize production. Therefore, Katalyst has introduced contract farming in regions adjacent to Rangpur and Bogra by Katalyst, which is a process through which prospective maize traders and/or seed and fertilizer dealers become contractors to provide farmers with quality inputs, irrigation facilities and technical ‘know-how’ required for maize production with buy-back guarantee.

However, in spite of access to quality inputs and technical knowledge, farmers lack the initial capital required for maize cultivation since it needs high investment in land preparation and fertilizer cost, access to finance remains a critical issue.

Since there was no formal financial institution or source through which the farmers could receive loans for maize cultivation, Katalyst was working with several banks to develop a sustainable credit line for the maize farmers. Katalyst has partnered with National Commerce and Credit Bank (NCC) and GMark to develop a Dedicated Credit Line (DCL) for the maize farmers.

In addition some of them also raised the question that they are not aware about the formal procedure of banking and loan processing. During the program, NCC Bank assured them that their issues will be addressed by the officials of the respective branches.
The loan disbursement ceremony was attended by Mahesh Kumar Sarkar, Senior Assistant Vice President, respective branch managers and Md, Golam Faruq, Principal Officer of NCC Bank, Mohammed Hossain, Financial Consultant and representatives of GMark and relevant staff from Katalyst were present in the event. The farmers appreciated this loan facility from a NCC, a formal financial institution.

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