The Daily Corporate Desk
Dhaka, October 20, 2026: BRAC Bank has launched an initiative to expand access to formal credit for farmers and agricultural input retailers by leveraging their digital transaction histories. Under a two-year pilot programme jointly undertaken with the International Food Policy Research Institute (IFPRI), eligible participants will have access to loans ranging from Tk 50,000 to Tk 500,000.
The programme, scheduled to begin in October 2026 and continue until October 2028, aims to reach 50,000 farmers and 1,500 agricultural input retailers. The initiative is supported by the Gates Foundation.
According to a BRAC Bank press release, the programme will use digital transaction histories to assess the creditworthiness of farmers and agricultural input retailers. This approach is expected to improve access to formal financing for individuals who have limited conventional documentation of their income, business transactions and financial capacity.
How the Loan Programme Will Work
Many farmers and small agricultural businesses in Bangladesh face difficulties accessing bank loans due to insufficient documentation. As a result, some are compelled to rely on informal sources of credit.
To address this challenge, the initiative will use digital transaction data to build a clearer picture of participants’ financial activities. BRAC Bank will then assess their eligibility for credit based on the available information.
The programme will utilise BRAC Bank’s Astha, Shafollo and Jibika digital platforms, alongside its agent banking network, to facilitate digital payments and lending services.
However, having a digital transaction history will not automatically guarantee loan approval. Applicants must meet the bank’s prescribed eligibility criteria and lending requirements.
Research to Assess the Programme’s Effectiveness
Beyond introducing digital financial services, the initiative will evaluate their effectiveness and potential for wider implementation.
IFPRI will conduct research, including a randomised evaluation, to examine the factors influencing the adoption of digital financial services, the programme’s impact on financial inclusion and its feasibility for expansion on a larger scale.
The findings are expected to inform policymaking and help assess the potential for extending the programme nationwide.
Syed Abdul Momen, Additional Managing Director and Head of SME Banking at BRAC Bank, said farmers and small agricultural businesses play a vital role in the economy and food security. However, many continue to face barriers to accessing formal credit.
He noted that using data from everyday digital transactions could provide a clearer understanding of their financial activities and help create opportunities for improved access to loans.
Snigdha Ali, Country Programme Officer at the Gates Foundation, said expanding access to formal credit through digital transactions could positively influence farmers’ livelihoods and economic opportunities.
Mehrab Bakhtiar, Research Fellow and Project Lead at IFPRI, said many farmers in Bangladesh remain outside the formal financial system. The research will seek to understand how digital financial services affect their lives and what measures are needed to bring them fully into the digital financial ecosystem.
Under the partnership agreement, Syed Abdul Momen signed on behalf of BRAC Bank, while Johan Swinnen, Director General of IFPRI, signed on behalf of the research organisation.
Source: BRAC Bank press release
