The government of Bangladesh is expanding refinance schemes and low-interest financing to encourage youth entrepreneurship and address unemployment, Finance Minister Amir Khosru Mahmud Chowdhury told Parliament on Tuesday.
Responding to a starred question from ruling party MP Mohammad Abdul Malek (Sylhet-3), the minister said Bangladesh Bank is currently operating multiple support programmes aimed at improving access to credit for new entrepreneurs, particularly young people entering business for the first time.
He clarified that there is no interest-free loan scheme for young entrepreneurs under Bangladesh Bank at present. However, the central bank has expanded its Cottage, Micro and Small Enterprise (CMSE) New Entrepreneurs Refinance Scheme from Tk100 crore to Tk500 crore using its own resources.
Under this scheme, new entrepreneurs can access loans of up to Tk10 lakh without collateral at a maximum interest rate of 7 per cent, while loans of up to Tk35 lakh are available with collateral requirements.
In addition, a separate Tk500 crore Start-up Fund has been introduced, offering loans at a reduced interest rate of 4 per cent to support innovative and early-stage ventures.
The minister also said Bangladesh Bank, in collaboration with 39 scheduled banks, has established the Bangladesh Start-up Investment Company PLC to provide equity-based financing to startup enterprises.
Alongside financial support, skills development initiatives are being strengthened. Under the Skills for Industry Competitiveness and Innovation Program (SICIP), aspiring entrepreneurs receive month-long training involving 100 hours of instruction across different districts. Participants are also given a Tk5,000 stipend upon completion, along with priority access to loan facilities.
Khosru said educated unemployment remains a significant challenge in Bangladesh, particularly among general education graduates. The government is therefore prioritising vocational and technical training to improve employability.
He added that efforts are ongoing to ensure that training translates into real job opportunities both in domestic industries and overseas labour markets, with a stronger focus on practical skills and certification systems.
