BB launches Tk20 lakh youth entrepreneurship program in upazilas
Photo: Agamir Somoy
Bangladesh Bank (BB) has launched an initiative to transform young people of upazilas into successful entrepreneurs, offering financial packages of up to Tk20 lakh.
BB officials announced the initiative titled “Udyog: Upazila-based Young Entrepreneur Search, Identification, and Funding Program” at a press conference held on Thursday.
BB SME and Special Programs Department will spearhead the implementation of the program. Scheduled banks will leverage their branch networks to locate young talents at the upazila level. Afterward, the banks will verify the candidates’ business concepts and their actual capital requirements before dispersing the funds.
Selected entrepreneurs will receive the financing package of up to Tk20 lakh based on their business needs. While half represents a bank loan and the other half is a grant, the authorities capped the interest or profit rate at a maximum of 4-5 percent. Candidates do not need to provide any collateral to secure the loan.
However, if an entrepreneur fails to repay the loan within the timeframe, the authorities will convert the interest-free grant portion into an interest-free loan. In that case, the conventional banking rules will classify the account as a defaulted loan, and the entrepreneur will lose eligibility to secure any banking loans in the future.
To qualify for the program, applicants must be adult citizens of Bangladesh. They must be 28 years of age or younger on the final date of application, and they must hold permanent residency in the upazila. While prior business experience is not a mandatory requirement, the applicant must present a realistic business concept.
BB will consider all types of legal commercial ventures under this project, focusing on sectors such as agriculture, food processing, handicrafts, fisheries, animal husbandry, tourism, services, and technology-based startups.
Applying for the program is entirely free of charge, and locals can easily submit their applications using the prescribed forms at any branch of a scheduled bank within their upazila.
BB expects to release the official circular containing detailed guidelines for the program on 16 September, and banks will accept applications for one month following the circular’s publication.
Initially, the program will kick off across 64 upazilas located in eight districts representing the country’s eight divisions: Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur, and Netrokona. The selection panel will choose 10 young entrepreneurs from each of these upazilas, bringing the total number of initial beneficiaries to 640.
BB plans to gradually expand this program to upazilas in other districts of the country. Under the expansion, the authorities aim to provide financial backing and professional assistance to around 5,000 young entrepreneurs every year.
