The agreement was signed between the Ministry of Agricultural, Irrigation and Livestock of Afghanistan (MAIL) and the First Micro-Finance Bank of Afghanistan and Afghan Rural Finance Company.
According to a statement by MAIL, the funds have been prepared by Agriculture Development Fund (ADF) and the agreement was signed by Minister of Agriculture, Irrigation and Livestock Asadullah Zamir with the representatives of the micro finance institutions.
The loans will be distributed during the current solar year, 1395, through the microfinance institutions, the statement said, adding that the farmers, small entrepreneurs, agricultural producers will receive the loans.
The statement further added that the loans will help the farmers and producers of agricultural products to produce, process and pack their products in accordance with the international standards.
At least 3,000 farmers will be covered by part of th loans that will be distributed by the First Microfinance Bank of Afghanistan and the other parts would be covered by Afghan Rural Finance Company.
According to MAIL, the funds will help the agriculture sector to purchase standard technical equipment to develop the sector.
The Agriculture Development Fund (ADF) has provided loans worth of AFN 4,429,000,000 to 35,000 farmers and activists of agriculture sector since 2010, covering 33 provinces.