Bangladesh Bank’s ‘Udyog’ Program Offers Young Entrepreneurs 20 Lakh Taka
The “Udyog” project, an upazila-based program started by Bangladesh Bank, aims to find, nurture, and support young entrepreneurs to turn them from job seekers into employment creators. During a press conference at the Motijheel branch, Mr. Arif Hossain Khan, the executive director and spokesperson of the central bank, announced the program, which is a key priority for the government and seeks to capitalize on the nation’s aging population. Mr. Khan said that young contributions are necessary for economic growth and foreign exchange gains alongside expatriate remittances, emphasizing the need to develop skilled human resources before the demographic advantage fades over the next 20 years.
In contrast to traditional competitions, scheduled banks will actively use their branch networks to find, assess, and support possible applicants. A government grant with no security requirements and a bank loan with a maximum interest rate of 4 to 7 percent will each get up to 20 lakh taka. The representative did, however, issue a warning: if the loan is not repaid on schedule, it will become interest-free, and the consumer would be identified as a defaulter. In addition to financial help, applicants will have possibilities for market connections, business registration assistance, mentorship, and professional training.
Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur, and Netrokona are the eight districts in the eight divisions where the first pilot round would be conducted in 64 upazilas. An initial batch of 640 recipients will be formed by selecting ten young entrepreneurs from each targeted upazila. A larger national expansion will support 5,000 entrepreneurs per year. Candidates must be residents of the upazila, be up to 28 years old, and have a solid business plan in any of the following lawful industries: agriculture, handicrafts, fisheries, livestock, tourism, services, or technology. No prior business experience is required.
On September 16, the program’s detailed criteria will be made public. During that month, applications can be filed directly at local scheduled bank branches for free. Bangladesh Bank also noted that each successful micro-entrepreneur usually creates jobs for three to five people, highlighting the wider socioeconomic effect. It is anticipated that this multidimensional partnership between banks and development partners would significantly increase domestic production, create jobs, and accelerate Bangladesh’s continuing transition to a high-income country.
