New entrepreneurs to get unsecured loans of up to Tk 1 million

New entrepreneurs in Bangladesh will be eligible for loans of up to Tk 1 million without collateral under a Bangladesh Bank refinancing scheme aimed at promoting self-employment and supporting small businesses, Finance Minister Amir Khasru Mahmud Chowdhury told parliament on Tuesday.

Responding to a question during the parliamentary question-and-answer session, the finance minister said the government currently has no plans to introduce interest-free loans for young entrepreneurs. However, Bangladesh Bank is operating several refinancing schemes to provide easier access to finance for new businesses and startups.

He said the central bank has expanded its New Entrepreneur Refinance Scheme for cottage, micro, and small enterprises by increasing the fund size from Tk 100 crore to Tk 500 crore. Under the scheme, first-time entrepreneurs can obtain loans of up to Tk 1 million without collateral at an interest rate of up to 7%. Entrepreneurs able to provide collateral may access loans of up to Tk 3.5 million under the same programme.

The minister also highlighted a separate Tk 500 crore Startup Fund, through which startups can secure financing at a concessional interest rate of 4%. In addition to debt financing, the government has established Bangladesh Startup Investment Company PLC, backed by Bangladesh Bank and 39 scheduled banks, to provide equity support to promising startups.

To strengthen entrepreneurial skills, the government is implementing the Entrepreneurship Development Programme (EDP) under the Skills for Industry Competitiveness and Innovation Programme (SICIP). The initiative offers a 100-hour training course free of charge to aspiring entrepreneurs across the country.

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Participants who successfully complete the programme receive a Tk 5,000 training allowance and are given preference in accessing Bangladesh Bank's financing facilities, the minister added.