Tk10 Lakh Collateral-Free Loans & New Startup Fund Launched

To boost grassroots entrepreneurship, Bangladesh Bank has expanded financing options for small businesses and startups. Finance Minister Amir Khosru Mahmud Chowdhury announced the initiatives in parliament on July 12, 2026.

The central bank has increased the refinancing fund for cottage, micro, and small enterprises (CMSMEs) from Tk100 crore to Tk500 crore. Under this expanded scheme, new entrepreneurs can access collateral-free loans of up to Tk10 lakh at a maximum interest rate of 7%. Borrowers seeking larger amounts can secure up to Tk35 lakh with collateral.

For the startup ecosystem, the government launched a dedicated Tk500 crore Startup Fund offering loans at a low 4% interest rate. Promising startups will also benefit from equity investment opportunities through the newly formed Bangladesh Start-up Investment Company PLC, a joint initiative by the central bank and 39 scheduled banks.

Additionally, the minister highlighted the success of a Tk1,000 crore low-interest loan fund for unemployed youths, which concluded in July 2025. A follow-up Tk1,200 crore fund is currently in its final stages. These nationwide programs aim to make business financing more accessible and foster economic growth across Bangladesh.