New entrepreneurs in Bangladesh will be eligible for loans of up to Tk 1 million without collateral under a series of Bangladesh Bank initiatives aimed at improving access to finance for young and emerging businesses, Finance Minister Amir Khasru Mahmud Chowdhury told parliament on Sunday.

Responding to a written question from Kurigram-3 lawmaker Md Mahbubul Alam during the 23rd sitting of the second and first budget session of the 13th Jatiya Sangsad, the minister said the central bank has expanded its refinancing support for cottage, micro and small enterprises.

The refinancing fund for new entrepreneurs, financed by Bangladesh Bank, has been increased from Tk 100 crore to Tk 500 crore. Under the scheme, entrepreneurs can obtain loans of up to Tk 1 million without collateral and up to Tk 3.5 million against collateral, with an interest rate capped at 7%.

The finance minister also said Bangladesh Bank has launched a Tk 500 crore refinancing fund, titled the Startup Fund, to support startup entrepreneurs. Loans under the scheme will be available at a concessional interest rate of 4%.

In addition to debt financing, the government is expanding equity support for startups. To this end, Bangladesh Bank, in partnership with 39 scheduled banks, has established Bangladesh Startup Investment Company PLC, an equity investment company to finance promising startups.

The minister further said a Tk 1,000 crore employment fund operated through Karmasangsthan Bank and financed by Bangladesh Bank successfully concluded on July 14, 2025. The programme was designed to help trained or experienced educated and semi-educated unemployed youths become cottage, micro and small entrepreneurs.

A new Tk 1,200 crore fund is now in the final stage of approval to continue the programme, he added.