Creative new entrepreneurs getting loans at 4 percent interest

After a long wait, the start-up fund saw the light of day with the aim of collaborating with creative new entrepreneurs. To this end, Bangladesh Bank has started activities to stand by the side of new entrepreneurs by setting up a special refinancing fund of Tk. 500 crore with its own funds. As a result, there has been a lot of enthusiasm among new entrepreneurs.

In this regard, the policy of formation and management of start-up funds has been published by the SME and Special Programs Division of the Central Bank on Monday. It is said that a refinancing fund for start-ups with Rs 500 crore has been started. However, the size of the fund will be increased according to the needs of the time. In addition to the funds of the central bank, each scheduled bank has to form a start-up fund on its own initiative. Banks will initiate the fund by transferring 1 percent of the operating profit in 2020. Banks will save 1 percent of operating profit in the start-up fund for the next five years after 2021.

New and creative entrepreneurs will get loans from this special fund at a maximum interest rate of 4 percent. The loan taken for five years will have a grace period of one year. Entrepreneurs between the ages of 21 and 45 can take loans from start-up funds. An entrepreneur can borrow up to a maximum of Tk 1 crore from the fund. To take a loan from this special fund, one does not have to keep any security deposit with the bank. Entrepreneur’s personal guarantee, certificate of educational qualification or certificate of technical training will be considered as loan guarantee in this case.

Sunbd/NJ