Take ৳10,000 as dadon and repay 10 maund of paddy after 4 months: at ৳1,300 a maund the paddy is worth ৳13,000. That is ৳3,000 of interest — 7.5% a month, 90% a year. The same cash as a farm loan would cost about ৳267.
৳
= 10 thousand taka
Paddy unit
maund
৳
What a maund of paddy sells for when you hand it over — change the example price
months
% / year
True yearly rate (simple)
90%
7.5% a month
Paddy
10 maund (373.2 kg)
Value of the paddy repaid
৳13,000
Real interest (taka)
৳3,000
Monthly rate
7.5%
Yearly with compounding
119.7%
Interest on a farm loan instead
৳267
Extra paid on the dadon
৳2,733
Price at which interest would be zero
৳1,000 / maund
Taking ৳10,000 and repaying 10 maund (373.2 kg) of paddy (worth ৳13,000) after 4 months means ৳3,000 in real interest — about 90% a year. The same cash as a farm loan would cost ৳267.
Enter the paddy price yourself: prices vary by season and area. Use the market price when you repay.
Alternatives: farm loans from banks, Krishi Bank and licensed microfinance institutions cost far less. Ask at a nearby branch with your NID and land papers.
Keep it in writing: how much cash, how much paddy and when.
More: why dadon interest is easy to miss
Dadon rarely mentions “interest”: you take cash and give paddy later. But if the paddy is worth more than the cash, the difference is interest — and because the term is only a few months, the yearly rate gets very large.
Many people avoid interest for religious reasons. This calculator doesn’t encourage any loan; it only shows the real cost plainly.
Frequently asked questions
What is dadon?
Dadon is cash taken before the harvest and repaid later in crops, mostly paddy. The paddy is valued below market or more of it is demanded — that is where the hidden interest lies.
How much interest does dadon cost?
The market value of the paddy you hand over minus the cash you took is the real interest. News reports from the haor describe ৳500 per ৳1,000 over 8 months, about 75% a year.
What do farm loans cost?
Under Bangladesh Bank's Tk 10,000 crore refinancing fund, banks can lend to farmers at up to 8% simple interest. Other schemes run roughly 4-9%. Ask a nearby bank or Krishi Bank branch.
What if the paddy price is higher?
The higher the price, the more taka your paddy is worth, so the real interest rises. The 'price at which interest would be zero' row shows when you would only be repaying the cash.
What if the lender values the paddy below market?
Enter the market price when you repay, not the lender's price. If a ৳10,000 advance is set at ৳800 a maund, you owe 12.5 maund; at a market price of ৳1,300 that paddy is worth ৳16,250. That is ৳6,250 in interest over 4 months: 15.625% a month, 187.5% a year.
Can I enter the paddy in kg?
Yes, pick kg as the unit. The calculator converts at 1 maund = 37.3242 kg (40 seer). If your area counts a maund as 40 kg, enter the number of maund instead.