United News of Bangladesh

Bangladesh Bank is set to launch a specialised financial program titled "Uddyog: Upazila-Based Young Entrepreneur Search, Identification, and Financing Program" to transform young citizens into successful entrepreneurs across the country. The SME and Special Programs Department of the central bank will implement the initiative. Details of the scheme were unveiled by BB Spokesperson and Executive Director Arif Hossain Khan at a press conference at the central bank headquarters on Thursday. Unlike traditional competitive contests, "Uddyog" will identify promising young individuals directly at the upazila level through branches of scheduled banks. Participating banks will evaluate applicants' business plans, feasibility, and funding requirements to disburse the financial assistance. Under the program, selected young entrepreneurs will receive financial support of up to Tk 20 lakh. This package includes a maximum bank loan of Tk 10 lakh and a grant of up to Tk 10 lakh. The interest or profit rate for the loan portion at the customer level has been fixed at a maximum of 4 to 7 percent. Crucially, the entire financing package will be provided without requiring any collateral. However, if an entrepreneur fails to repay the loan portion within the stipulated timeframe, the grant portion will automatically be converted into an interest-free loan. The account will then be classified under standard central bank rules, rendering the borrower a defaulter and ineligible for future loans. To qualify for the programme, applicants must be adult Bangladeshi citizens and residents of the respective upazila, with an upper age limit of 28 years on the final date of application. Prior business experience is not mandatory, allowing individuals with realistic and viable business ideas to apply. Eligible sectors include agriculture, food processing, fisheries, livestock, handicrafts, tourism, services, technology, and other legitimate business ventures. No application fee will be charged. Interested candidates can submit their application forms to any scheduled bank branch within their respective upazila. In its initial pilot phase, the programme will roll out across 64 upazilas in eight selected districts spanning eight divisions: Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur, and Netrokona. Ten young entrepreneurs will be selected from each upazila, totaling 640 beneficiaries in the first phase, before the program expands nationwide. Beyond financial funding, "Uddyog" will offer entrepreneurship development training, mentorship from experienced professionals, business registration support, assistance in business plan formulation, and market linkage services. Bangladesh Bank estimates that each successful micro-entrepreneur creates employment for three to five people on average, making this initiative a key driver for job creation and local economic growth. A detailed circular outlining the implementation methodology and terms will be issued by Bangladesh Bank on September 16, following which applications will remain open for one month.