Staff Reporter :
Bangladesh Bank has announced a remarkable overhaul of its startup loan policy, aimed at fostering entrepreneurship and driving sustainable economic growth.
Under the revised framework, citizens aged 21 and above are now eligible to apply for startup loans at a fixed interest rate of 4 percent, according to a circular issued on Wednesday.
The updated policy expands eligibility criteria, raises loan ceilings, and introduces new financing instruments, including equity investment options, to better support emerging entrepreneurs.
Startups that are already operational may also apply for funding, provided they were registered within the past 12 years.
To support the initiative, Bangladesh Bank has established a Tk 500 crore Startup Fund to be used for refinancing purposes. While banks and financial institutions can draw on this fund, they are required to disburse loans from their own resources and are not permitted to issue loans from any previously created startup funds. Loans approved under the earlier policy will still be disbursed as planned.
One of the most notable changes is the increase in the maximum loan amount. Depending on the stage of development, startups can now secure between Tk 2 crore and Tk 8 crore in financing-an increase from the previous ceiling of Tk 1 crore.
For the first time, banks will also be permitted to make equity investments in startups. To facilitate this, Bangladesh Bank will establish a dedicated venture capital company. Banks will be allowed to channel their entire startup fund into this vehicle, and such investments will be recorded as equity on their balance sheets.
Borrowers will benefit from the same favourable interest rate of 4 percent, with repayments to be made on a quarterly basis.
Bangladesh Bank stated that the revamped policy is designed to promote innovation, generate employment opportunities, and attract international investment. It also aligns with the Sustainable Development Goals (SDGs) by encouraging entrepreneurship and supporting inclusive economic development.
