PM Announces Collateral-Free Loans for Startups

Prime Minister Tarique Rahman on Tuesday announced a collateral-free financing scheme for young startup entrepreneurs, offering loans ranging from Tk 5 lakh to Tk 5 crore to support innovative business ventures.

He made the announcement while responding to questions from young entrepreneurs at the event titled "Youth, Startups and the Bangladesh of Possibilities" at the Nabab Nawab Ali Chowdhury Senate Bhaban of the University of Dhaka.

The programme, organised by the Information and Communication Technology (ICT) Division in collaboration with Dhaka University, also featured the launch of the National Startup and Entrepreneurship Platform.

The Prime Minister said the government has allocated Tk 500 crore through the ICT Division to support startups and promote entrepreneurship among the country's youth.

He said first-time entrepreneurs with promising business ideas would no longer need to provide land, property or any other form of collateral to secure financing.

"A completely independent committee has been formed. There are no ministers or advisers on it. The committee will evaluate project proposals, and approved startups will receive financing without any collateral," he said.

Tarique Rahman also said entrepreneurs whose ventures fail despite demonstrating strong potential would be given another opportunity to receive government-backed funding.

Responding to a question from a Jagannath University student, he said the government aims to expand the startup ecosystem beyond Dhaka so that aspiring entrepreneurs from all parts of the country can benefit from the initiative.

"We want young entrepreneurs from every corner of Bangladesh to come forward. We want to reach them," he said.

The Prime Minister acknowledged that building a strong startup ecosystem would take time but expressed confidence that the goal could be achieved through collective efforts.

More than 230 students and entrepreneurs from eight universities participated in the interactive session, which was moderated by University Grants Commission member Abdullah Al Mamun. Senior government officials, university representatives and startup founders also attended the programme.