Bangladesh Bank is set to launch a specialised financial programme titled “Uddyog: Upazila-Based Young Entrepreneur Search, Identification, and Financing Programme” to help turn young citizens into successful entrepreneurs across the country.
Under the programme, selected young entrepreneurs will receive financial support of up to 20 lakh taka. The package includes a maximum bank loan of 10 lakh taka , and a grant of up to 10 lakh taka.
The SME and Special Programmes Department of the central bank will implement the initiative.
Details of the scheme were unveiled by BB spokesperson and Executive Director Arif Hossain Khan at a press conference at the central bank headquarters on Thursday.
Unlike traditional competitive contests, “Uddyog” will identify promising young individuals directly at the upazila level through branches of scheduled banks. Participating banks will evaluate applicants’ business plans, feasibility and funding requirements before disbursing financial assistance.
The interest or profit rate on the loan portion at the customer level has been fixed at between 4% and 7%. Crucially, the entire financing package will be provided without requiring collateral.
However, if an entrepreneur fails to repay the loan portion within the stipulated timeframe, the grant portion will automatically be converted into an interest-free loan.
The account will then be classified under standard central bank rules, rendering the borrower a defaulter and making them ineligible for future loans.
To qualify for the programme, applicants must be adult Bangladeshi citizens and residents of the respective upazila, with an upper age limit of 28 years on the final date of application.
Prior business experience is not mandatory, allowing individuals with realistic and viable business ideas to apply.
Eligible sectors include agriculture, food processing, fisheries, livestock, handicrafts, tourism, services, technology and other legitimate business ventures.
No application fee will be charged. Interested candidates can submit their application forms to any scheduled bank branch within their respective upazila.
In its initial pilot phase, the programme will be rolled out across 64 upazilas in eight selected districts spanning eight divisions: Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur and Netrokona.
Ten young entrepreneurs will be selected from each upazila, resulting in 640 beneficiaries in the first phase before the programme is expanded nationwide.
Beyond financial support, “Uddyog” will offer entrepreneurship development training, mentorship from experienced professionals, business registration support, assistance with business plan formulation and market linkage services.
Bangladesh Bank estimates that each successful micro-entrepreneur creates employment for three to five people on average, making the initiative a potential driver of job creation and local economic growth.
A detailed circular outlining the implementation methodology and terms will be issued by Bangladesh Bank on September 16, after which applications will remain open for one month.