Startup entrepreneurs to receive loans up to Tk 10 lakh: Finance Minister

New entrepreneurs are being provided collateral-free loans of up to Tk 10 lakh, Finance Minister Amir Khasru Mahmud Chowdhury informed parliament on Tuesday, June 9.

Responding to a question from Sylhet-3 MP Mohammad Abdul Malek during the question-answer session, the finance minister said there is currently no interest-free loan programme for young people run by Bangladesh Bank. However, the central bank operates various refinancing schemes from its own funds to disburse loans on easy terms and at low interest rates.

The 'New Entrepreneur Refinancing Scheme' fund for cottage, micro and small sectors has been increased from Tk 100 crore to Tk 500 crore, the minister said. Under this scheme, new entrepreneurs can get collateral-free loans of up to Tk 10 lakh at a maximum interest rate of 7 per cent. Additionally, they can access loans of up to Tk 35 lakh with collateral.

The minister also informed that another refinancing fund of Tk 500 crore called 'Startup Fund' has been created to facilitate loan access for startup entrepreneurs, under which entrepreneurs can receive loans at only 4 per cent interest.