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BB to finance 640 young entrepreneurs
Published : Thursday, 3 September, 2026 at 2:42 PM
Staff Correspondent
Bangladesh Bank (BB) is set to launch a new programme to help young people in rural areas start businesses, offering each selected entrepreneur financing of up to Tk20 lakh.
A central bank press conference told this on Thursday at its headquarters in Motijheel in the capital.
Bangladeshi citizens aged up to 28 years who live in the concerned upazila will be eligible to apply.
Previous business experience will not be necessary. A realistic business idea will be enough to apply.
The programme will consider agriculture and food processing, handicrafts, fisheries, livestock, tourism, services and technology-based businesses, among other legal ventures.
Applications will be free and can be submitted through a scheduled bank branch in the concerned upazila.
Bangladesh Bank will issue detailed instructions on September 16. Applications will remain open for one month after the circular is issued.
But the financing will also come with responsibility. If a borrower fails to repay the loan within the stipulated period, the grant portion will be converted into a non-interest-bearing loan.
The loan may then be classified under existing banking rules, making the borrower a defaulter and potentially affecting their ability to receive loans in the future. Bangladesh Bank expects the programme to create jobs along with new businesses.
It estimates that a successful small entrepreneur generally creates three to five jobs.
A central bank press conference told this on Thursday at its headquarters in Motijheel in the capital.
Under the “UDYOG” programme, half of the package will come as a bank loan and the other half as a grant.The borrower will pay interest or profit at a rate of 4 per cent to 7 per cent, while no collateral will be required.
The programme will initially cover 64 upazilas in eight districts- Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur and Netrakona.
Ten young entrepreneurs will be selected from each upazila, bringing the first-phase total to 640.
Bangladesh Bank plans to gradually expand the programme to other parts of the country and provide financing and support to around 5,000 young entrepreneurs every year.
Bangladeshi citizens aged up to 28 years who live in the concerned upazila will be eligible to apply.
Previous business experience will not be necessary. A realistic business idea will be enough to apply.
The programme will consider agriculture and food processing, handicrafts, fisheries, livestock, tourism, services and technology-based businesses, among other legal ventures.
Applications will be free and can be submitted through a scheduled bank branch in the concerned upazila.
Bangladesh Bank will issue detailed instructions on September 16. Applications will remain open for one month after the circular is issued.
The programme will offer more than just financing.
Selected entrepreneurs will receive business training, advice from experienced mentors, help with business registration and business-plan preparation, and opportunities to connect with markets.
But the financing will also come with responsibility. If a borrower fails to repay the loan within the stipulated period, the grant portion will be converted into a non-interest-bearing loan.
The loan may then be classified under existing banking rules, making the borrower a defaulter and potentially affecting their ability to receive loans in the future. Bangladesh Bank expects the programme to create jobs along with new businesses.
It estimates that a successful small entrepreneur generally creates three to five jobs.
The central bank hopes the initiative will therefore help young people become entrepreneurs, create employment and contribute to the country's economic development.
HS/TF
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Editor : Iqbal Sobhan Chowdhury
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Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, E-mail: [email protected], [email protected] Online: email: [email protected] 41053014; 01550707297 Advertisement: 01550707296
