Young Entrepreneurs to Get Loans of Up to 50 Million Taka without Collateral: Prime Minister

Photo: Collected

News Desk: Prime Minister Tarique Rahman has announced that young startup entrepreneurs will be given loans ranging from Tk 500,000 to a maximum of Tk 50 million without requiring collateral.

He said the government stands by talented entrepreneurs. "The Information and Communication Technology Division has allocated around Tk 5 billion to support startups. From this fund, we will try to provide entrepreneurs with assistance ranging from Tk 500,000 to Tk 50 million."

The Prime Minister made the announcement on Tuesday while responding to questions from young entrepreneurs at an event titled "Youth, Startups and the Bangladesh of Possibilities" held at the Nawab Nawab Ali Chowdhury Senate Building of the University of Dhaka.

The event was organized by the government's Information and Communication Technology Division in collaboration with the University of Dhaka. One of the main attractions of the event was the inauguration of the National Startup and Entrepreneurship Platform.

Responding to a question from Nusrat Jahan, a statistics student at the University of Dhaka, Tarique Rahman said the government has decided that, for the first time, entrepreneurs wishing to launch startups will not have to go through conventional banking procedures requiring land, property or other forms of collateral.

He said, "A completely independent committee has been formed. There are no ministers or advisers on it. They will evaluate your project, and if it is approved, you will receive funding without any collateral."

Responding to another student's question, the Prime Minister said that young entrepreneurs with promising business ideas would be eligible for government-backed startup financing without collateral. Even if promising startups fail initially, they will be given another opportunity to receive funding.

The discussion session was moderated by Professor Abdullah Al Mamun, a member of the University Grants Commission, and was attended by more than 230 students from eight universities.

In response to a question from Syeda Anannya Faria, a student of Jagannath University, regarding support for entrepreneurs outside Dhaka, the Prime Minister said the government wants to expand the startup ecosystem across the country instead of limiting it to the capital.

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

In response to another question, Tarique Rahman said it would take time to build an ecosystem, but the goal could be achieved through sincere efforts.

"It will take us some time. But if we all work together sincerely, I believe we will reach our goal," he said.

The students who asked questions were from the University of Dhaka (DU), Bangladesh University of Engineering and Technology (BUET), Jahangirnagar University (JU), Jagannath University (JnU), Bangladesh University of Professionals (BUP), Military Institute of Science and Technology (MIST), North South University, and BRAC University.

Also present at the event were Posts, Telecommunications and Information Technology Minister Fakir Mahbub Anam, the Prime Minister's Adviser on Posts, Telecommunications and Information Technology Rehan Asif Asad, Acting Secretary of the Information and Communication Technology Division Md. Mamunur Rashid Bhuiyan, University of Dhaka Vice-Chancellor Professor Dr. A B M Obaidul Islam, Professor Dr. Md. Morshed Hasan Khan of the Department of Marketing, senior officials of the ministry, teachers and students from various universities, and entrepreneurs.