B Mirror Report: Private sector bank Prime Bank will provide loans of up to Tk 80 million (8 crore) to startups and entrepreneurs. The repayment period will be up to five years. While collateral will be required for loans of Tk 80 million, loans of up to Tk 10 million (1 crore) can be obtained without any collateral. The loans will be repaid in installments within a specified period.

In July last year, Bangladesh Bank introduced a new policy for the startup sector. Under this policy, a fund of around Tk 12 billion (1,200 crore) was formed from the profits of Bangladesh Bank and commercial banks. From this fund, startup companies can avail loans of up to Tk 80 million at an interest rate of 4 percent. Prime Bank will disburse these loans under the fund.

Under this scheme, the bank will provide up to Tk 20 million in loans to businesses less than two years old. Ventures aged between 2 and 6 years can receive up to Tk 50 million, while those between 6 and 12 years old can get up to Tk 80 million.

Nazim A. Chowdhury, Additional Managing Director (AMD) of Prime Bank, said that startups need not only financing but also proper guidelines, mentorship, and operational support. This will also reduce the bank’s risk. In addition to loans, the scheme also includes opportunities for equity investment.

Under this scheme, Prime Bank will offer term loans of up to Tk 10 million at a 4 percent interest rate, according to information available on the bank’s website.

Startups that are developing new products, services, or technologies will be considered for these loans. Priority will be given to those introducing innovation in marketing their products. Businesses must also be scalable, commercially viable, and capable of generating returns on investment.

Projects that contribute to employment generation and increase domestic resources will also be prioritized. Applicants must be between 21 and 45 years old and must be Bangladeshi citizens.

To obtain the loan, startups must have a valid trade license or registration. They must also submit any required special licenses (such as drug licenses or environmental clearance). For companies, a Memorandum and Articles of Association and a certificate of incorporation are required.

For partnerships, a registered agreement from the Registrar of Joint Stock Companies and Firms (RJSC) is needed. Board approval from the company or partners is also required. Additionally, national ID cards or passports and photographs of the entrepreneur partners, and guarantors must be submitted.

Entrepreneurs must provide guarantees against financed movable and immovable assets, including guarantees from family members and third parties. If a third-party guarantee is unavailable, educational or relevant professional certificates of graduate entrepreneurs may be used as collateral, along with a declaration verifying their authenticity. For loans exceeding Tk 5 million, a registered mortgage of pledged property is required.

Nazim A. Chowdhury added that, beyond financing, the scheme offers additional support for startups. Considering the uncertainty and lack of experience in new ventures, the loan approval process will be flexible and practical. Facilities such as a grace period, flexible installments, advisory services, and networking support will also be provided.