Bangladesh Bank is set to implement the upazila-based young entrepreneur search, identification and financing programme, under which each selected entrepreneur will be eligible for financing of up to Tk20 lakh. Half of the amount will be provided as a bank loan, while the remaining half will be given as a grant, officials said at a press conference held at Bangladesh Bank today (3 September).
The interest or profit rate at the borrower level will be capped at 4%-5%. No collateral will be required for the loans. If an entrepreneur fails to repay the loan within the stipulated period, the grant portion will be converted into an interest-free loan. In such cases, the loan account will be classified under existing banking rules and treated as defaulted.
As a result, the entrepreneur will no longer be eligible to receive loans in the future. This structure lowers the barrier to entry for starting a business, as the combination of a loan and grant reduces the immediate financial risk for new ventures.
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Who can apply and where to start
To be eligible, applicants must be adult Bangladeshi citizens aged 28 or below as of the application deadline and residents of the relevant upazila. Previous business experience will not be mandatory. However, applicants must have a realistic and viable business idea.
All types of legitimate ventures will be considered under the programme, including businesses in agriculture and food processing, handicrafts, fisheries, livestock, tourism, services and technology-based sectors. Applications will be completely free of charge.
Residents of the relevant upazilas will be able to apply using the prescribed form at a branch of any scheduled bank. A circular containing detailed guidelines for implementing the programme will be issued on 16 September. Applications will remain open for one month following the issuance of the circular.
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Initially, the programme will be launched in 64 upazilas across eight districts — Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur and Netrokona — one district from each of the country’s eight divisions. A total of 640 young entrepreneurs will be selected, with 10 entrepreneurs from each upazila.
The programme will subsequently be expanded to upazilas in other districts across the country. Bangladesh Bank plans to provide financing and support to approximately 5,000 young entrepreneurs every year as the programme is gradually expanded nationwide.
Bangladesh Bank said the programme would not be limited to financing alone. Selected entrepreneurs will also receive entrepreneurship development training, ongoing guidance from experienced mentors, assistance with business registration and business plan preparation, as well as opportunities for market linkage.