Bangladesh Bank’s 'Udyog' opens applications, young people to receive up to Tk 2m

Bangladesh Bank has launched a new initiative to address the country’s severe unemployment problem and create alternative employment opportunities.

As part of its effort to develop young people as entrepreneurs rather than jobseekers, the formal application process for the “Udyog” programme begins today, Wednesday, 16 September 2026.

Through this new initiative, the central bank aims to identify promising young people at the upazila level and provide them with capital to start businesses.

During the initial phase, the programme will operate in 64 upazilas across eight districts, one from each of the country’s eight divisions: Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur and Netrokona.

Under the programme, selected applicants will receive financial assistance of up to Tk 20 lakh (2 million) to operate new or existing businesses.

One of the programme’s key features is that the assistance will comprise both a loan and a grant at no cost.

Banks will provide 50 per cent of the total assistance, up to Tk 10 lakh, as a loan, while the remaining 50 per cent, or up to Tk 10 lakh, will be provided as a one-off grant.

Bangladesh Bank has confirmed that entrepreneurs will not need to provide any collateral to obtain this financing. However, beneficiaries must ensure that they use the funds properly.

If a beneficiary fails to repay the loan instalments within the stipulated period or uses the funds for purposes other than those specified, the grant facility will be cancelled.

In that case, the grant amount will also be converted into a loan and subsequently recovered as a government receivable.

Applicants must meet certain conditions under the country’s applicable laws to qualify for the programme.

On the closing date for applications, candidates must be no more than 28 years old. They must also be permanent residents of the relevant upazila and have a viable business idea or plan.

Anyone who has previously taken a loan from a bank or financial institution will not be eligible to apply for the programme.

Loan defaulters and employees of government, semi-government or autonomous institutions will also be excluded from the scheme. Applications containing incorrect or false information will be rejected outright.

Young entrepreneurs working in agriculture-based industries, food processing, handicrafts, fisheries, livestock, tourism, light engineering and renewable energy will be eligible for the facility.

Financing will also be available for technology-based start-ups, including e-commerce, fintech, edtech, agritech and healthtech ventures, as well as any other lawful income-generating initiative.

Application opening date: 16 September 2026

Application deadline: 15 October 2026

Age limit: Maximum 28 years on the application deadline

Financing amount: Up to Tk 2 million (20 lakh) in total, with loans and grants provided in a 50:50 ratio

Application process: The application form can be downloaded directly from the official Bangladesh Bank website, the SME portal and the respective websites of all scheduled banks in Bangladesh.

Where to submit applications: Any scheduled bank branch in the applicant’s local area

Required documents: Completed application form, National Identity Card, citizenship certificate issued by the ward councillor, photographs, and educational and training certificates, if applicable.