Central bank launches new initiative offering grants and collateral-free loans to nurture young entrepreneurs across all sub-districts.
In a bid to foster self-reliance and spur grass-roots economic growth, Bangladesh Bank is set to implement a nationwide scheme titled “Uddyog: Upazila-Based Young Entrepreneur Search, Identification, and Financing Programme”. The initiative targets promising young men and women at the sub-district level, offering bespoke financial assistance packages of up to BDT 20 lakh per selected applicant to help turn viable business ideas into enterprise realities.
Details of the scheme were unveiled during a press conference held at Bangladesh Bank’s headquarters, led by Executive Director and Spokesperson Arif Hossain Khan alongside Assistant Spokesperson Shahriar Siddiqui. Executive officers confirmed that the SME and Special Programmes Department will oversee the execution of the initiative. Commercial banks will leverage their extensive branch networks across the country to scout, evaluate, and mentor aspiring entrepreneurs in every upazila.
The structure of the financial assistance is tailored to ease the initial burden on start-ups. Each chosen candidate will receive a package up to the maximum threshold of BDT 20 lakh based on their assessed business requirements, split equally between a grant and a commercial loan. To ensure accessibility for cash-strapped youth, the credit component requires no collateral, whilst interest rates capped at 4 to 5 per cent keep borrowing costs exceptionally low.
The central bank has nevertheless incorporated strict accountability measures into the policy framework. Should a beneficiary fail to service their debt within the stipulated timeframe, the grant portion will instantly convert into an interest-free loan. The entire account will subsequently be reclassified under standard regulatory procedures, rendering the defaulting borrower ineligible for future financial support from the banking sector.
By lowering entry barriers and pairing non-repayable grants with affordable credit, Bangladesh Bank aims to generate self-employment opportunities outside major urban hubs. The programme is expected to revitalize local economies, boost rural production, and build a resilient generation of enterprise leaders across the country’s sub-districts.
