Highlights:
- Bangladesh Bank introduces Tk500 crore refinancing fund for Start-Ups to Get Loans.
- Start-Ups to Get Loans at a maximum interest rate of 4%.
- Start-ups will be able to borrow between Tk2 crore and Tk8 crore.
- Sixteen banks and four financial institutions have joined the programme.
A New Fund for Young Entrepreneurs
Bangladesh Bank has officially launched a Tk500 crore refinancing fund to support Start-Ups to Get Loans across the country. The initiative is designed to help new businesses grow by providing loans at a much lower interest rate compared to the market. Eligible entrepreneurs will now be able to borrow money at a maximum rate of 4%.
Official Launch Ceremony
The fund was formally introduced on 2 September at the Bangladesh Bank head office. A participation agreement signing ceremony was held with representatives from different banks and financial institutions.
Bangladesh Bank Deputy Governor Nurun Nahar and Executive Director Husne Ara Shikha were present in person, while the central bank’s Governor, Dr. Ahsan H Mansur, joined the event virtually.
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Mohammad Mostafizur Rahman, Director of the SME and Special Programs Department, signed the agreement on behalf of Bangladesh Bank. Managing directors and SME department heads signed on behalf of their respective institutions.
Who is Participating?
So far, 16 scheduled banks and 4 financial institutions have agreed to take part in the fund. They will work with start-up entrepreneurs to provide financing under the new programme.
Loan Facilities for Start-Ups
According to the newly revised circular, start-ups will now be able to take out both term loans and working capital loans. The amount will range from Tk2 crore to Tk8 crore, depending on the needs of the business.
This gives start-ups an opportunity to secure larger amounts of funding than before, making it easier for them to invest in expansion, product development, or operational costs.
Future Plans: Equity Investment Company
During the event, officials also discussed plans for creating an equity investment company. This new company would be formed in partnership with 52 banks and is expected to provide additional investment opportunities for start-ups in the future.
Importance of Start-Ups in the Economy
Bangladesh Bank stressed that in the current economic situation, start-ups play a crucial role in:
- Creating new jobs,
- Encouraging innovative business ideas, and
- Building stronger international partnerships.
The central bank also said that the new fund will make it easier for entrepreneurs to access financing, reduce barriers for new businesses, and ensure long-term sustainable development of the start-up sector.
Source: TBS
