Bangladesh Bank has initiated a Tk 500 crore refinancing fund aimed at supporting start-up ventures, enabling entrepreneurs to secure loans at a maximum interest or profit rate of 4 percent.

The announcement was formalised on Tuesday (September 2) at the central bank’s headquarters in Dhaka, where a participation agreement was signed with 16 scheduled banks and four finance companies. 

The ceremony was attended by Deputy Governor Nurun Nahar and Executive Director Husne Ara Shikha, while Governor Dr Ahsan H. Mansur joined the proceedings virtually.

On behalf of the central bank, Mohammad Mostafizur Rahman, Director (current charge) of the SME and Special Programmes Department, signed the agreements, while the managing directors of the banks and finance companies represented their respective institutions. 

Heads of SME divisions from the participating organisations were also present.

According to the newly issued circular, start-up entrepreneurs will now be eligible to access both term loans and working capital ranging from Tk 2 crore to Tk 8 crore. 

Discussions were also held regarding the formation of a proposed equity investment company involving 52 partner banks.

The central bank said that the country’s start-up sector plays a crucial role in job creation, fostering innovative businesses, and expanding international partnerships. 

The refinements outlined in the new circular are expected to ease access to financing and contribute to the sustainable growth of the sector.

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