Dhaka: In a major push to foster self-employment and drive grassroots economic growth, Bangladesh Bank on Sunday issued a comprehensive guideline titled "Udyog: Upazila-Driven Youth Opportunity for Growth". The program aims to hunt, identify, and finance prospective young entrepreneurs across all upazilas in Bangladesh.
According to United News of Bangladesh, the initiative is geared towards empowering young entrepreneurs by providing financial support up to Tk20 lakh. The program has been designed to cover a wide array of legal ventures, including tech startups, agriculture, food processing, light engineering, renewable energy, and handicrafts. Both new innovative ideas and existing business models are prioritized under this scheme.
The circular, issued by the SME and Special Programmes Department, directs Managing Directors and Chief Executive Officers of all scheduled banks to implement the scheme immediately. Bangladesh Bank has laid out specific eligibility guidelines to ensure that funding reaches genuine and capable young creators. Applicants must be adult Bangladeshi citizens aged up to 28 years, permanent residents of their respective upazilas, and must not have a history of loan defaults. Furthermore, those who have previously taken business loans or are employed in public, semi-government, or autonomous institutions are not eligible to apply.
To alleviate financial barriers, the program requires no collateral, offering a maximum blended financing package of up to Tk20 lakh per selected entrepreneur. This funding is split equally into a 50 percent bank loan and a 50 percent matching grant, disbursed based on business requirements and proposed cost plans. Any misuse of funds or failure to repay the loan will convert the grant into an interest-free debt, recoverable under standard recovery laws.
Bangladesh Bank will appoint one Lead Bank in each upazila to execute and coordinate the program. Scheduled bank branches will collect application forms and forward them through the designated channels for evaluation. A multi-stakeholder panel will assess business plans, market feasibility, and employment potential for final selections. Designated banks are required to sanction loans within 15 working days of the final selection, following internal and central bank regulations.
In addition to financial support, participating banks will offer financial literacy training, mentoring, market linkage support, and assistance with business registrations to ensure the sustainability of these new enterprises.