Bangladesh Bank to Offer Young Entrepreneurs Up to Tk 20 Lakh

Bangladesh Bank has announced a new programme to help young people start businesses and create employment, offering selected entrepreneurs a combined package of loans and grants worth up to Tk 20 lakh.

The programme, named UDYOG — Upazila-based Young Entrepreneur Identification, Selection and Financing Programme — is designed to support young Bangladeshis with viable business ideas, even if they have no previous business experience.

The central bank announced the initiative on 3 September 2026. The programme will initially be introduced in 64 upazilas across eight districts, with 10 entrepreneurs to be selected from each upazila, bringing the total number of initial beneficiaries to 640.

Loan and Grant Package

Under the programme, each selected entrepreneur may receive up to Tk 10 lakh in bank financing and up to Tk 10 lakh in grants, depending on the needs of the proposed business.

The loan portion will carry an interest or profit rate of between 4% and 7%. The financing will be provided without collateral, making the programme particularly relevant for young applicants who may have business ideas but lack property or other assets to secure a loan.

The maximum combined support of Tk 20 lakh is not an automatic entitlement. The amount will depend on the applicant’s business requirements and the outcome of the selection process.

The programme is intended to make it easier for young people to move from business ideas to actual enterprises, while encouraging employment creation at the local level.

Eligibility and Selection

Applicants must be Bangladeshi citizens aged 28 or below on the final application date. They must also live in the relevant upazila and present a viable business idea.

Previous business experience will not be required. This provision allows the programme to consider applicants who are entering entrepreneurship for the first time.

The initial rollout will cover Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur and Netrokona districts. Each of the 64 selected upazilas will nominate 10 entrepreneurs for the first phase.

The selection process will determine which applicants receive support and how much financing is appropriate for their proposed businesses.

Application Timeline

Bangladesh Bank said it will issue a circular on 16 September 2026. Applications will then be submitted through a prescribed form at an upazila-level bank branch.

Applicants will have one month to submit their applications after the circular is issued. The announcement does not indicate that the full Tk 20 lakh package will be available to every applicant, as support will depend on business needs and selection.

The programme therefore offers an opportunity for eligible young people to prepare their business ideas and consider how financing could help them establish an enterprise.

Local Entrepreneurship and Employment

By focusing on upazila-level selection, UDYOG is intended to reach young entrepreneurs outside major urban centres. The initial programme’s coverage of 64 upazilas across eight districts provides a starting point for identifying and supporting new businesses in local communities.

The combination of loans and grants is designed to reduce the financial barriers faced by young people seeking to establish businesses. The absence of a collateral requirement may also make formal financing more accessible to applicants who do not own property.

For eligible applicants, the next step will be to prepare a viable business proposal and follow the application process once the central bank’s circular is issued. The programme’s initial phase will determine how many young entrepreneurs receive support and how effectively the financing helps them launch businesses.