Bank For Agricultural Credit Asks Cabinet Approval To Offer Different Interest Rates

The Principle Bank for Development and Agricultural Credit has submitted a study to the Cabinet about imposing different interest rates on agricultural loans according to the sizes of lands.

Mohsen El-Batran, Chairman of the bank, said the study shows that about 6 million or 95% of farmers own less than five feddans (5.19 acres) which necessitates imposing different interest rates for land sizes starting from a carat to more than five feddans.

The Cabinet will give its approval or rejection on the matter after studying this suggestion. Raising the subsidy rates from 6% to 6.5% has contributed to saving from EGP 50 million to EGP 60 million, El-Batran added. The bank targets to expand in financing micro and small enterprises as the bank plans to shift all its transactions gradually to dealing with micro-enterprises only after five years.