Collateral-Free Loans and Startup Fund Launched for New Entrepreneurs

New and aspiring entrepreneurs across Bangladesh can now access collateral-free loans of up to 10 lakh Taka at a maximum interest rate of 7 per cent. Simultaneously, a specialised 500 crore Taka refinancing fund has been established by Bangladesh Bank, offering credit to innovative tech startups at a highly subsidised interest rate of just 4 per cent.

Finance Minister Amir Khasru Mahmud Chowdhury detailed these expansive fiscal measures before parliament on Sunday, 12 July 2026. The announcement came during the 23rd day of the second session (the first budget session) of the 13th National Parliament, which commenced at 3:00 pm under the chairmanship of Speaker Hafiz Uddin Ahmed Bir Bikram. The Finance Minister was responding to a written query tabled by Mohammad Mahbubul Alam, the Member of Parliament representing the Kurigram-3 constituency.

To stimulate self-employment and foster grass-roots economic resilience, Bangladesh Bank has dramatically expanded its financial cushion for the Cottage, Micro, Small, and Medium Enterprises (CMSME) sector. The central bank’s dedicated refinancing scheme for new entrepreneurs has been quintupled, rising from its previous allocation of 100 crore Taka to a substantial 500 crore Taka.

Under the revised guidelines of this enhanced CMSME facility, small-scale business founders can secure up to 10 lakh Taka without presenting any collateral. For expanding enterprises capable of providing collateral, the maximum borrowing limit has been set at 35 lakh Taka, with interest rates capped strictly at 7 per cent across both tiers.

Addressing the specific challenges faced by the technology and innovative services sectors, the Finance Minister highlighted the operationalisation of the dedicated ‘Start-Up Fund’. This parallel 500 crore Taka refinancing tool enables early-stage companies to leverage capital at a minimal 4 per cent interest rate, significantly lowering the barrier to entry for youth-led ventures.

Beyond traditional debt financing, the state is shifting towards equity-based corporate support. Chowdhury revealed that Bangladesh Bank has orchestrated a historic partnership involving 39 scheduled commercial banks to form the ‘Bangladesh Start-Up Investment Company, PLC’. This newly incorporated public limited entity is designed to inject direct equity support or venture capital into high-potential startups, allowing the state and banking sector to co-invest in local innovations.

The government also provided updates on its broader strategy to absorb educated and semi-educated unemployed youth into the mainstream economy. Previously, a 1,000 crore Taka credit programme, financed by Bangladesh Bank and disbursed via the specialised Karmasangsthan Bank, had been catering to trained individuals with practical vocational skills. This particular fund concluded its tenure on 14 July 2025.

To maintain momentum in employment generation, the Finance Minister assured parliament that the administrative groundwork for a larger, successor fund worth 1,200 crore Taka is currently in its final stages of completion. This upcoming financial package will continue providing low-interest credit facilities to thousands of technically trained youths across the country’s rural and semi-urban administrative hubs.