Applications open for collateral-free loans of 2 million taka for young people

Bangla Press Desk:  Bangladesh Bank has launched an initiative to foster entrepreneurship among the youth, offering funding of up to 2 million BDT (20 lakh taka). Under this program, titled ‘Udyog’ (Initiative), applications are now being accepted from young entrepreneurs across the country’s remaining 56 districts. The application process, which began on Sunday (November 1), will continue until November 30.

Through this program, an entrepreneur can receive a maximum of 2 million BDT—comprising a loan of up to 1 million BDT and a grant of up to 1 million BDT. Both the loan and the grant will be disbursed as a single, one-time payment. The grant portion will be funded through the Corporate Social Responsibility (CSR) funds of commercial banks.

Interested young entrepreneurs may complete the prescribed application form and submit it to any scheduled bank branch located in their respective upazila. The application form can be downloaded from the Bangladesh Bank website, the SME portal, or the websites of the respective scheduled banks.

Previously, in the initial phase of the program, applications were collected from 64 upazilas across eight districts. During that period—which ran from September 16 to October 15—a total of 18,444 applications were received.

The breakdown of applications by district is as follows: 5,351 in Netrokona, 2,745 in Rangpur, 2,456 in Naogaon, 2,191 in Jhenaidah, 1,552 in Habiganj, 1,545 in Bhola, 1,343 in Manikganj, and 1,261 in Feni.

The official name of this Bangladesh Bank initiative is the "Upazila-based Young Entrepreneur Identification and Financing Program." Its objective is to discover promising young entrepreneurs at the upazila level, select genuine candidates, and facilitate job creation through financial support.

Regarding the selection process, Bangladesh Bank spokesperson Arif Hossain Khan stated that entrepreneurs may submit applications to any commercial bank. A committee—comprising both bankers and subject-matter experts—will be responsible for reviewing and screening the applications. Entrepreneurs will be selected for financing based on their recommendations.

The policy guidelines for the program were issued on September 13 via SMESPD Circular No. 05. Detailed guidelines can be found on the Bangladesh Bank website (www.bb.org.bd) and the SME portal (www.bb.org.bd/smespd_portal).