Bangladesh Bank to finance 10 young entrepreneurs in every upazila

Bangladesh Bank has launched an initiative to identify and finance 10 promising young entrepreneurs from each upazila across the country, with selected applicants eligible for Tk 10 lakh to Tk 20 lakh in financing depending on their business needs.

The programme, titled ‘Upazila-based Young Entrepreneur Search, Identification and Financing Programme’, will initially be piloted in eight districts, one from each administrative division. If successful, it will be gradually expanded to all districts and upazilas.

The central bank will provide loans at interest rates ranging from 4 per cent to 7 per cent, depending on the business sector and financing requirement. Entrepreneurs will not need to provide collateral to obtain the loans, while financing will come from sector-specific refinancing schemes.

Part of the financing will be provided as conditional grants from the corporate social responsibility (CSR) funds of participating banks. Grants used for the approved business purposes will not have to be repaid. However, if the money is used for other purposes, the grant will be converted into a loan.

A portion of the grant will be disbursed initially, while the remaining amount will be kept in a separate account. Further access to the funds will depend on the entrepreneur’s repayment record, business progress and the outcome of periodic assessments.

According to minutes of a Bangladesh Bank board meeting held on August 30, the programme aims to boost economic activity, create jobs and encourage greater participation of young people in entrepreneurship, particularly in upazilas and remote areas where promising business ideas often fail to take off due to limited access to capital, advice and institutional financing.

Applications will be invited from prospective entrepreneurs, who will be shortlisted and selected based on the viability of their business ideas, actual financing needs and repayment capacity.

One bank in each district will be responsible for implementing the programme. Bangladesh Bank’s relevant field offices, the designated banks and experts will jointly participate in the entrepreneur selection process.

Bangladesh has 503 upazilas across 64 districts. The programme aims to bring 5,030 young entrepreneurs under the initiative by selecting 10 from each upazila.

The Bangladesh Bank board has approved a Tk 500 crore fund for the programme. The central bank will provide Tk 250 crore, while participating banks will contribute the remaining Tk 250 crore. Additional support will come from the CSR funds of Bangladesh Bank and participating banks.

Administrative and other programme-related expenses, including entrepreneur searches, publicity, application screening, workshops, business-idea assessment and skills development, will be covered from Bangladesh Bank’s CMSME fund.