Bangladesh: Bangladesh Bank (BB) has launched a new programme titled "UDYOG" to identify, select, and finance promising young entrepreneurs at the upazila level with a view to creating productive employment and promoting entrepreneurship across the country.
According to Bangladesh Sangbad Sangstha, the central bank issued the policy guidelines for the "UDYOG: Upazila-based Young Entrepreneur Identification, Selection and Financing Programme" through its SME and Special Programmes Department (SMSPD) Circular No. 05 on September 13, 2026, said a press release. Under the activation phase, the programme will be implemented in all 64 upazilas in Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur, and Netrokona districts.
Applications under the programme will be accepted from September 16 to October 15, 2026, through prescribed forms. Applications submitted after the deadline will not be considered. The application forms will be available from Bangladesh Bank's website, its SME portal, and the websites of scheduled banks. Applicants can submit completed forms to any scheduled bank branch located in the concerned upazila. No prior bank account with the concerned bank is required, and applicants will not have to pay any fee or charge for submitting applications.
Applicants must be aged up to 28 years on the closing date of applications and must be permanent residents of the respective upazila. They must have either their own business initiative, a viable business idea, or a realistic plan to establish a new business. However, applicants who have previously taken loans from a bank or financial institution for business activities, have been identified as loan defaulters, or are employed by government, semi-government, or autonomous organisations will not be eligible for financing under the programme.
Selected entrepreneurs will be eligible for blended financing of up to Tk 20 lakh, based on their actual business needs and proposed expenditure. The financing will comprise up to Tk 10 lakh in bank loans and Tk 10 lakh in grants, maintaining a 50:50 ratio. Loans may be provided without collateral. The loan and grant will be disbursed simultaneously in a single approved amount to the entrepreneur's bank account. No cash payment will be made. If the entrepreneur fails to repay the loan within the stipulated period or if misuse of the loan is detected, an equivalent amount of the grant will be converted into a loan and recovered as government dues under the applicable law.
The programme will also provide beneficiaries with financial literacy training, continuous guidance from experienced mentors, support for business registration and business-plan preparation, and opportunities for market linkages. Bangladesh Bank has warned that lobbying or attempting to influence the selection process at any stage will make an applicant ineligible. Applications may also be cancelled and applicants blacklisted if false information is provided or if another person's idea is submitted as one's own.
The central bank said the participation of young entrepreneurs is crucial to Bangladesh's economic development, employment generation, and expansion of innovative initiatives. It expressed hope that the UDYOG programme would bring promising young entrepreneurs at the upazila level under formal bank financing and help create productive employment.