Bangladesh Bank Creates Fund For New Entrepreneurs

Bangladesh Bank (BB) has created a refinancing fund of Tk 100 crore for the new entrepreneurs in micro, small and medium sector (MSM).

“The fund has been created to ease the funding to the new enterprises in the MSM sector who have already got training under the entrepreneurs development programmes by the government or private organisations,” a central bank circular said on Thursday.

The BB said the new entrepreneurs who are able to demonstrate their self- motivation and skills in entrepreneurship would also be allowed to get the loan from this fund.
Under the refinancing scheme, an entrepreneur would get highest Tk 10 lakh loan without any collateral. The amount, however, would be Tk 25 lakh in case of loan supported by collateral.

The entrepreneur should invest at least 20 percent of the total cost of their new venture.

The rate of interest for the loan will be 10 percent and the tenure of the loan will be one year for the current capital (current capital is the part of a company’s capital that is used for day-to-day operations), and three years for mid-term and five years for long term loans.

There will a three-month grace period for repayment, which can be extended to six months on the basis of the bank-client relationship.

Like other refinancing schemes, the Tk 100 crore fund will also be disbursed through different commercial banks.

The fund would help establish new businesses by the young entrepreneurs who are being developed under a joint initiative of Dhaka Chamber of Commerce and Industry (DCCI) Bangladesh Bank.

The DCCI has targeted developing 2,000 young entrepreneurs to build a new business arena.