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Bangladesh Bank (BB) has launched a new financing scheme to help young entrepreneurs turn business ideas into viable enterprises and create jobs at the grassroots level.

Named UDYOG — Upazila-Driven Youth Opportunity for Growth, the programme will provide selected entrepreneurs with a mix of bank loans and grants in a 50:50 ratio, with total financing capped at Tk 20 lakh per person.

Under the scheme, an entrepreneur can receive up to Tk 10 lakh as a bank loan and another Tk 10 lakh as a grant, depending on business requirements, proposed expenditure and the final assessment.

The programme covers all legally permitted businesses, including agriculture, food processing, fisheries, livestock, handicrafts, tourism, services, solar and other renewable energy, light engineering and technology-based startups. Priority will be given to innovative business ideas as well as viable existing ventures.

Applicants must be Bangladeshi citizens aged up to 28 years on the application deadline and permanent residents of the respective upazila. They can apply with an existing business, a business idea or a realistic plan to launch a new venture.

However, people who have previously taken a business loan from a bank or financial institution, loan defaulters identified through the Credit Information Bureau (CIB), and employees of government, semi-government or autonomous bodies will be excluded.

How the scheme will work

Applications can be submitted to any scheduled bank branch in the applicant’s upazila using the prescribed form. Maintaining an account with the applying bank beforehand is not required.

Applicants must submit their National Identity Card, latest educational certificate if available, photographs, application form and a citizenship or ward commissioner/councillor certificate proving permanent residence.

BB will designate one scheduled bank branch in each upazila as the lead bank. Applications received by other branches will be routed through the upazila and district lead banks for processing.

A selection panel involving BB, scheduled banks, successful entrepreneurs, government and private organisations, industry representatives, academics and experts will assess applicants based on business viability, market potential, financial plans, entrepreneurial capacity and job-creation prospects.

Being selected, however, will not automatically guarantee financing. The concerned bank will conduct its own credit assessment under prevailing lending policies and regulations and, if requirements are met, must approve the loan within 15 working days.

The loan and grant will be disbursed together in a single instalment directly into the entrepreneur’s bank account. Cash disbursement will not be allowed.

If a borrower fails to repay the loan on time or misuses the funds, an amount equivalent to the grant will be converted into a loan and treated as a government receivable for recovery under existing laws.

The scheme also allows banks to provide financing without collateral. Loans extended under the programme will be eligible for refinancing under relevant BB schemes, subject to applicable conditions.

Beyond financing, applicants will receive financial literacy support, while selected entrepreneurs will have access to entrepreneurship training, mentoring, help with business registration and business-plan preparation, as well as market-linkage opportunities.

The application deadline is October 15, 2026.

BB said the programme is intended to turn the potential of young people in rural areas into productive businesses, employment and broader economic opportunities.