Bangladesh Bank to form BDT 500cr start-up fund
The Bangladesh Bank has formed a BDT 500 crore fund in order to help new entrepreneurs aged between 21 and 45 years start businesses.
The fund has been constituted in the form of a refinance scheme, meaning banks will firstly disburse loans to
clients and the banking regulator will later reimburse the fund to banks. New entrepreneurs will be allowed to manage funds from the refinance scheme at a maximum interest rate of 4 per cent and banks will get funds at 0.5 per cent interest from the central bank. The maximum repayment tenure of the fund is five years. A client will get a maximum of BDT 1 crore from the fund including one year grace period.
At least 10 per cent of the disbursed loan under the startup fund will have to be given out to female entrepreneurs.