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Prime Minister Tarique Rahman has announced a new government initiative to provide collateral-free loans ranging from Tk 5 lakh to Tk 5 crore for young startup entrepreneurs, aiming to encourage innovation and entrepreneurship across the country.
He made the announcement Tuesday while answering questions from aspiring entrepreneurs at an event titled “Youth, Startups and the Bangladesh of Possibilities”, held at the Nabab Nawab Ali Chowdhury Senate Bhaban of the University of Dhaka (DU).
Emphasizing the government’s commitment to supporting talented entrepreneurs, the prime minister said the Information and Communication Technology (ICT) Division has allocated Tk 500 crore to promote startups. Under the initiative, eligible entrepreneurs will be able to access financing from Tk 5 lakh to a maximum of Tk 5 crore.
The event, organized jointly by the ICT Division and DU, also marked the launch of the National Startup and Entrepreneur Platform, one of its key highlights.
The discussion, moderated by University Grants Commission member Abdullah Al Mamun, was attended by more than 230 students representing eight universities.
Responding to a question from DU statistics student Nusrat Jahan, Tarique Rahman said first-time startup founders would no longer be required to meet conventional banking conditions such as providing land, property or other assets as collateral.
Instead, he said, applications would be assessed by an independent committee free from political influence.
“A completely independent committee has been formed. There are no ministers or advisers on it. They will evaluate your project, and if it is approved, you will receive financing without any collateral,” the prime minister said.
He added that young entrepreneurs with viable and innovative business ideas would be eligible for government-backed financing without collateral.
The prime minister also said the government would offer promising entrepreneurs a second chance if their initial startup ventures failed, allowing them to seek funding again to pursue their business ideas.