Funding of Tk 20 lakh for young entrepreneurs—half loan, half grant: How to apply.

Bangladesh Bank has launched a new financing program named ‘Uddyog’ (Initiative) to groom young people as entrepreneurs, create new employment opportunities, and revitalize the rural economy. Under this program, promising young entrepreneurs will be identified across various Upazilas of the country.

Selected entrepreneurs will have the opportunity to receive financing of up to Tk 20 lakh without any collateral. Half of this amount will be provided as a bank loan, while the other half will be given as a grant.

Bangladesh Bank to Seek 5,000 Young Entrepreneurs

On September 13, Bangladesh Bank’s SME and Special Programmes Department published the policy guidelines for the ‘Upazila-based Young Entrepreneur Search, Identification, and Financing Program – Uddyog’.

The program aims to establish approximately 5,000 promising young individuals from various parts of the country as entrepreneurs.

Applications opened on Wednesday (September 16). In the first phase, applications can be submitted until October 15. Entrepreneurs from Upazilas in other districts of the country will be able to apply from November 1 to November 30.

Where to Get the Application Form?

Application forms can be collected from Bangladesh Bank’s official website, the SME portal, and the websites of all scheduled banks in the country.

Applications must be submitted through the relevant bank after filling out the prescribed form. Applications can be submitted at any scheduled bank branch located in the respective Upazila. It is not mandatory to already hold a bank account at the bank where the application is submitted.

Required Documents

The following documents must be submitted along with the application:

*   Copy of National Identity Card (NID) or Birth Registration Certificate
*   Copy of the latest educational qualification certificate
*   Certificate of skill development or entrepreneurship development training (if any)
*   Citizenship certificate or testimonial from the respective Ward Commissioner/Councilor
*   Proof of permanent residency

Up to Tk 20 Lakh; 50:50 Split Between Loan and Grant

Under the ‘Uddyog’ program, a selected entrepreneur can receive combined financing of up to Tk 20 lakh for their business. However, not every entrepreneur will receive the full Tk 20 lakh; the financing amount will be determined based on the actual business needs, feasibility, and proposed expenses. For maximum financing of Tk 20 lakh—

Tk 10 lakh bank loan + Tk 10 lakh grant = Total Tk 20 lakh.

The policy cites an example: if a business requires Tk 12 lakh, the entrepreneur may receive a maximum loan of Tk 6 lakh and a grant of Tk 6 lakh.

Selection Does Not Guarantee a Loan

Following application verification and final nomination, the concerned bank will arrange for loan approval within 15 working days, adhering to its own lending policies and prevailing regulations.

However, selection alone does not guarantee the loan. If an application is rejected, the bank must document the reason in writing and inform Bangladesh Bank.

Bangladesh Bank will designate a 'Lead Bank' from among the scheduled bank branches in each upazila. Applications at the upazila level will be coordinated by the upazila Lead Bank, while district-level applications will be coordinated by the district Lead Bank.

Training and Mentorship Support Alongside Funding

The benefits of the ‘Uddyog’ (Initiative) program are not limited to financing alone; selected entrepreneurs will also receive various forms of support necessary for running their businesses.

This includes—

Financial literacy programs
Entrepreneurship development training
Advice from experienced mentors
Assistance with business registration, including trade licenses and TINs
Support in preparing business plans
Market linkage opportunities

Through this initiative, Bangladesh Bank aims to facilitate the implementation of business ventures by youth in upazila and rural areas while simultaneously boosting local employment opportunities.

Applications Cancelled if Undue Influence is Used

No form of lobbying or undue influence is permitted to secure the program's benefits. If evidence of such influence is found, the applicant's candidacy will be cancelled.

Additionally, banks must adhere to Bangladesh Bank’s existing guidelines regarding customer identity verification, CIB (Credit Information Bureau) checks, and transaction monitoring.

Bangladesh Bank has stated that these directives, issued under the authority granted by Section 45 of the Bank Company Act, 1991, have come into effect immediately.