Young Bangladeshis looking to start or expand a business can now apply for financial backing under a new Bangladesh Bank scheme titled “Udyog.” The initiative aims to identify 5,000 promising youth across the country and provide them with up to Tk20 lakh in total funding, split equally between a bank loan and a non-repayable grant.
Applications for the first phase opened on Wednesday and will run until 15 October. Entrepreneurs living in upazilas across other districts will be eligible to apply during a second phase from 1 November to 30 November.
The central bank formally announced the scheme on 13 September, when its SME and Special Programmes Department issued detailed policy guidelines for the “Upazila-based Young Entrepreneur Search, Identification, and Financing Programme – Udyog.” The directive was sent to managing directors and chief executive officers of all scheduled banks in Bangladesh.
How the application process works
Applicants can download the prescribed application form from the official websites of Bangladesh Bank, the SME portal, or scheduled banks. Forms must be submitted to any scheduled bank branch located in the applicant’s upazila, and candidates are not required to hold a pre-existing account with that bank.
Scheduled bank branches in each upazila will handle application reception and candidate identification. To manage operations smoothly, Bangladesh Bank will name one lead bank per upazila, while district lead banks will coordinate applications at the district level.
To apply, candidates must attach the following supporting documents:
- A copy of their National Identity Card (NID) or birth registration certificate.
- A copy of their latest educational qualification certificate.
- A citizenship certificate or attestation letter from the relevant ward commissioner or councillor, proving permanent residency in the specified upazila.
- Certificates showing skill development or entrepreneurship training, if available.
Funding and loan conditions
Although financial support can reach up to Tk20 lakh, Bangladesh Bank clarified that the maximum amount will not be awarded automatically. The exact sum will depend on an assessment of the business proposal’s feasibility, actual requirements, and estimated costs.
All funding will follow a strict 50:50 ratio between loans and grants. For example, if a business proposal requires Tk12 lakh, the entrepreneur can receive a maximum of Tk6 lakh as a bank loan and Tk6 lakh as a grant.
Final selection under “Udyog” does not guarantee an automatic loan disbursement. Once nominated, the designated bank must review and approve the loan within 15 working days according to its internal credit policies. If a loan application is rejected, the bank must record the reasons in writing and inform Bangladesh Bank.
Training and business support
In addition to funding, every applicant will be enrolled in a financial literacy programme. Selected entrepreneurs will receive hands-on assistance, including entrepreneurship development training, guidance from experienced mentors, help with business plan preparation, and support in securing trade licences and Taxpayer Identification Numbers (TIN). The programme will also facilitate market linkage opportunities.
According to Bangladesh Bank, the overarching aim of the scheme is to groom young talent across different upazilas, boosting local employment and regional economic development.
The central bank warned that no lobbying or canvassing will be permitted, and any candidate caught lobbying will have their application immediately cancelled. Banks must strictly follow directives regarding Customer Due Diligence (KYC), Credit Information Bureau (CIB) checks, and transaction monitoring. Issued under Section 45 of the Bank Company Act, 1991, the central bank order took effect immediately.
