Startup Fund Bangladesh Bank

The newly introduced entrepreneurial loan scheme in Bangladesh offers significant support for young and women entrepreneurs. Here are the key details:

1. Eligibility and Loan Amount:

   • Age Range: Entrepreneurs aged between 21 to 45 years.
   • Loan Amount: Up to BDT 10 million (1 crore).

2. Loan Terms:

   • Term Duration: 5 years.
   • Installment Schedule: Repayments can be made every three or six months.
   • Grace Period: Maximum of one year before the start of repayments.

3. Allocation for Women Entrepreneurs:

   • Special Allocation: 10% of the fund is earmarked for women entrepreneurs.

4. Fund Structure:

   • Refinance Scheme:
     • Banks initially disburse the loans to eligible clients.
     • The central bank reimburses the banks for the disbursed amount.
   • Scheduled Banks' Contributions:
     • Scheduled banks will set up their own startup funds with 1% of their profit over the next five years.
     • This results in the creation of two funds:
       • One by the central bank.
       • Another from the scheduled banks’ own contributions.
     • This model mirrors previous refinancing schemes implemented by the Bangladesh Bank.

5. Implementation and Policies:

   • Year 2021: Scheduled banks can provide loans from both the central bank fund and their own funds.
   • Policy Requirement: Banks must develop separate policies for their funds, which need approval from their boards of directors.

This scheme aims to foster entrepreneurship, particularly among the youth and women, by providing accessible and affordable financing options.