Bangladesh Bank Boosts Startups with BDT 500 Crore Fund
Bangladesh Bank has launched a refinancing fund of BDT 500 crore at an interest rate of up to 4 percent to support startup entrepreneurs. To roll out this loan assistance program for promising entrepreneurs, the central bank signed agreements on Tuesday, September 2, with 16 scheduled banks and four financial institutions.
The banks and financial institutions that have signed the agreement are Dhaka Bank, Eastern Bank, Pubali Bank, Mutual Trust Bank, Trust Bank, BRAC Bank, The City Bank, Commercial Bank of Ceylon, Shahjalal Islami Bank, Uttara Bank, State Bank of India, Standard Bank, Prime Bank, Mercantile Bank, Modhumoti Bank, Community Bank, United Finance, IDLC Finance, IPDC and Lanka Bangla Finance.
The agreement signing ceremony was held at the central bank’s headquarters, attended by Deputy Governor Nurun Nahar and Executive Director Husne Ara Shikha. Governor Dr. Ahsan Mansur joined the event virtually.
On behalf of Bangladesh Bank, Mohammad Mostafizur Rahman, Director of the SME and Special Programs Department, signed the agreements, while managing directors and SME division heads signed for their respective institutions.
Under the newly revised circular, startups are now eligible to secure both term loans and working capital loans ranging from BDT 2 crore to BDT 8 crore.
The event also discussed forming a proposed equity investment company with the cooperation of 52 partner banks.
Bangladesh Bank emphasized that in the current economic context, the startup sector plays a crucial role in generating employment, fostering innovative businesses, and enhancing international partnerships. The refinements in the new circular are expected to ease financing access for entrepreneurs and promote sustainable growth in the sector.
Meanwhile, on the same day, Bangladesh Bank and Community Bank signed a partnership agreement under the Startup Refinance Scheme. The signing ceremony took place at the Jahangir Alam Conference Center in the presence of Deputy Governor Nurun Nahar and Executive Director Husne Ara Shikha.
The agreement was signed by Mohammad Mostafizur Rahman, Director (Current Charge) of the SME&SPD Department, on behalf of Bangladesh Bank, and Kimia Saadat, Managing Director (Current Charge), on behalf of Community Bank.
The event was attended by senior officials from both institutions, including Bangladesh Bank’s Joint Directors Hafia Tajrian and Md. Nurul Kawsar Saif, along with Community Bank’s Head of Corporate Banking and Head of Business (Branch) Dr. Md. Ariful Islam, and Head of SME and Agriculture Sharif Hasan Mamun.
Notably, United Finance has been providing innovative and market-oriented financial solutions for small and medium entrepreneurs as well as emerging corporates across the country for over 36 years. The institution operates 23 branches with a presence in every district.
