BB TO GIVE YOUNG ENTREPRENEURS UP TO TK20 LAKH

Young entrepreneurs with viable business ideas but limited capital will soon be eligible for up to Tk20 lakh in financial support under a new Bangladesh Bank initiative – with half provided as a grant and half as a loan.
The central bank unveiled the programme, titled “Udyog” (Upazila-based Young Entrepreneur Search, Identification and Financing Programme), during a press conference on Thursday.
The initiative aims to foster grassroots entrepreneurship across upazilas by providing access to finance, training, mentoring, and business development services.
Under the package, selected applicants will receive funding tailored to their specific needs. 
Up to Tk10 lakh (50%) will be disbursed as a grant, while the remaining half will be provided as a bank loan at an interest rate between 4% and 7%.
Crucially for young founders, the loans will be completely collateral-free.
However, if an entrepreneur fails to repay the loan within the stipulated period, the grant portion will be converted into an interest-free loan. 
The account will then be classified under existing banking rules, and the borrower will be treated as a defaulter and become ineligible for further loans.
Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan, Assistant Spokesperson Shahriar Siddiqui and other officials attended the press conference.
The central bank clarified that Udyog is not a conventional competition or contest. Instead, scheduled banks will use their existing branch networks to proactively identify promising young entrepreneurs at the upazila level.
Banks will assess applicants’ business ideas, actual financing needs and the viability of their proposed ventures before arranging financing.
Bangladesh Bank said its SME Department will issue a detailed circular on implementation of the programme on 16 September 2026.
The central bank expects to finance and support 5,000 entrepreneurs a year under the programme. 
Applications will be invited within one month of the circular’s issuance, with at least 10 entrepreneurs from each upazila initially selected for financing through banks.
The loan component will come from Bangladesh Bank’s existing refinancing scheme, while the grant component will be provided from banks’ Corporate Social Responsibility (CSR) funds. No separate fund will be created for the programme.

Who can apply?
Adult Bangladeshi citizens aged up to 28 on the application deadline and residing in the relevant upazila will be eligible to apply.
Prior business experience will not be mandatory. Applicants will only need to have a realistic and viable business idea.
The programme will cover all types of legitimate businesses, including agriculture and food processing, handicrafts, fisheries, livestock, tourism, services and technology-based enterprises.
There will be no application fee.
Eligible applicants will be able to apply using the prescribed form at any scheduled bank branch located in the concerned upazila.
Applicants will have one month from the issuance of the circular to submit their applications.
The programme will initially be launched in eight districts, one from each of the country’s eight divisions: Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur and Netrokona.
It will initially cover 64 upazilas across the eight districts, with 10 young entrepreneurs selected from each upazila, resulting in an initial selection of 640 entrepreneurs.
The initiative will subsequently be expanded to upazilas in other districts. Bangladesh Bank plans to finance and provide necessary support to 5,000 young entrepreneurs every year on a continuing basis.
The Udyog programme will not be limited to financing. 
Selected entrepreneurs will receive entrepreneurship development training, continuous guidance from experienced mentors, assistance with business registration and preparation of business plans, and opportunities for market linkages.
Bangladesh Bank believes a successful small entrepreneur can create employment for three to five people.
The central bank expects the initiative to help create new businesses at the upazila level, generate employment and contribute to the country’s broader economic development.