B Mirror Report: Young entrepreneurs in Bangladesh can now access loans of up to Tk 1 million without collateral under Bangladesh Bank’s refinancing schemes aimed at promoting entrepreneurship and reducing unemployment, Finance Minister Amir Khasru Mahmud Chowdhury told Parliament on Tuesday.
Responding to a question from Sylhet-3 lawmaker Mohammad Abdul Malek during the question-and-answer session in the Jatiya Sangsad, the minister said there is currently no interest-free loan programme for young entrepreneurs. However, Bangladesh Bank is offering loans on easy terms and at low interest rates through several refinancing facilities.
The minister said the central bank has expanded its New Entrepreneur Refinance Scheme for the cottage, micro and small enterprise sectors from Tk 1 billion to Tk 5 billion. Under the scheme, new entrepreneurs can obtain loans of up to Tk 1 million without collateral at a maximum interest rate of 7 percent. Loans of up to Tk 3.5 million are also available against collateral.
He also highlighted a separate Tk 5 billion Startup Fund, through which startup entrepreneurs can receive loans at an interest rate of just 4 percent.
In addition to lending support, Bangladesh Bank has facilitated the formation of Bangladesh Start-up Investment Company PLC, an equity investment company backed by 39 scheduled banks. Startup ventures will be able to seek equity financing from the company.
The finance minister also outlined training support available for aspiring entrepreneurs under the Skills for Industry Competitiveness and Innovation Program (SICIP). Through the Entrepreneurship Development Program (EDP), prospective entrepreneurs across the country receive 100 hours of free training over a month.
Participants are not required to pay any fees and receive a Tk 5,000 training allowance upon successful completion of the programme. Graduates are also given priority consideration when applying for loans, he added.
