Bangladesh Bank plans Tk 10bn fund to provide low-cost loans to young entrepreneurs

Bangladesh Bank is planning a Tk 10 billion fund to provide low-interest loans to young entrepreneurs under a proposed “Udyog” scheme.

At a meeting with Association of Bankers, Bangladesh leaders on Tuesday, Governor Mostaqur Rahman discussed the fund’s structure, policy, beneficiaries and possible lending mechanism.

ABB Chairman Mashrur Arefin said banks could offer loans at 4, 5 or 6 percent interest using central bank refinancing.

“Those aged 25, 26 or 27 could get around Tk 1 million each so they can start businesses. A major fund is coming for young entrepreneurs across the country,” he said.

He said entrepreneurs would initially be identified at Upazila level, while eligibility criteria were still being worked out.

The fund may also provide grants through banks’ corporate social responsibility budgets.

“If they get a Tk 1 million loan and Tk 1 million grant, they will have Tk 2 million,” Arefin said.

The fund will initially be set up with Tk 5 billion, with a target of supporting 5,000 young entrepreneurs.

Bangladesh Bank spokesperson Arief Hossain Khan said the plan remains at an early stage, with the loan amount, fund size and eligibility yet to be finalised.