Bangladesh Bank (BB) has launched a new financing programme titled “UDYOG Upazila-Driven Youth Opportunity for Growth” to identify, develop and finance promising young entrepreneurs at the upazila level.
The central bank introduced the programme with the aim of promoting employment, encouraging innovative business initiatives and supporting young people in becoming economically self-reliant.
Under the programme, selected young entrepreneurs will receive blended financing comprising bank loans and grants in a 50:50 ratio, with the combined financing capped at TK 20 lakh for each entrepreneur.
Of the total financing, a maximum of TK 10 lakh will be provided as bank loans and another TK 10 lakh as grants, depending on the entrepreneur's actual business requirements, proposed expenditure and final assessment.
The programme will cover all legally permitted businesses, including agriculture, food processing, handicrafts, fisheries, livestock, tourism, services, solar power and other renewable energy production, light engineering and technology-based start-ups.
Bangladesh Bank said priority would be given not only to existing business concepts but also to new and innovative business ideas.
Adult citizens aged up to 28 years on the final date of application will be eligible to apply. Applicants must be permanent residents of the respective upazila and must have an existing business initiative, a business idea or a realistic plan to establish a new business.
However, those who have previously taken a loan from a bank or financial institution for business purposes will not be eligible. Loan defaulters identified through the Credit Information Bureau (CIB) will also be excluded. Government, semi-government and autonomous body employees will not be eligible for financing under the programme.
Applications can be submitted to any scheduled bank branch located in the relevant upazila using the prescribed form. Applicants do not need to maintain an existing account with the bank where they submit their applications.
Applicants will have to submit their National Identity Card, latest educational certificate, if available, passport-size photographs and the completed application form. A citizenship certificate or certificate issued by the relevant ward commissioner or councillor will also be required as proof of permanent residence.
Bangladesh Bank will designate one scheduled bank branch in each upazila as the lead bank for implementing and coordinating the programme. Applications received by different bank branches will be forwarded through the upazila and district lead banks for further processing.
The selection process will involve Bangladesh Bank, successful entrepreneurs, representatives of scheduled banks, relevant government and private organisations, industry leaders, academics and experts.
Entrepreneurs will be selected based on the viability of their business ideas, market potential, financial plans, entrepreneurial capacity and potential for creating employment.
The central bank said selection under the programme would not automatically guarantee a loan. After final selection, the concerned bank will assess the applications according to its own lending policies and prevailing regulations and is required to approve the loan within 15 working days, subject to meeting the applicable requirements.
The loan and grant will be disbursed simultaneously in a single instalment into the entrepreneur's bank account. No cash payment will be allowed.
If the borrower fails to repay the loan on time or the funds are found to have been misused, the amount equivalent to the grant will be converted into a loan and treated as a government receivable recoverable under existing laws.
The programme also allows banks to provide loans without requiring collateral. The loans extended to selected entrepreneurs will be eligible for refinancing under relevant Bangladesh Bank refinancing schemes, subject to the applicable terms and conditions.
Besides financing, applicants will receive financial literacy support, while selected entrepreneurs will have access to entrepreneurship development training, continuous mentoring, assistance with business registration and preparation of business plans, and opportunities for market linkage.
The application deadline for the UDYOG programme is October 15, 2026, according to the application form attached to the circular.
Bangladesh Bank said the programme is expected to help transform the potential of young people at the grassroots level into productive employment and contribute to the country's economic development.
