Govt expands low-interest financing to boost youth entrepreneurship: Khosru

Finance Minister Amir Khosru Mahmud Chowdhury on Tuesday told parliament that the government has been implementing a range of refinance schemes to promote youth entrepreneurship and tackle unemployment through soft-term and low-interest financing.

Responding to a starred question from ruling party lawmaker Mohammad Abdul Malek (Sylhet-3) during the question-answer session, the minister said there is currently no interest-free loan scheme for young entrepreneurs operated by Bangladesh Bank.

Khosru said Bangladesh Bank has expanded its Cottage, Micro and Small Enterprise (CMSE) New Entrepreneurs Refinance Scheme from Tk 100 crore to Tk 500 crore using its own funds.

Under the scheme, new entrepreneurs can obtain loans of up to Tk 10 lakh without collateral at a maximum interest rate of 7 percent, while loans of up to Tk 35 lakh are available with collateral.

To further support startups, a Tk 500 crore Start-up Fund has been introduced, allowing entrepreneurs to access loans at a reduced interest rate of 4 percent, he said.

The minister also noted that Bangladesh Bank in partnership with 39 scheduled banks has established the Bangladesh Start-up Investment Company PLC to provide equity financing support to startup ventures.

Highlighting skills development initiatives, Khosru said aspiring entrepreneurs are receiving month-long entrepreneurship development training under the Skills for Industry Competitiveness and Innovation Program (SICIP), implemented by Bangladesh Bank’s PIU-SICIP.

“Through this programme, aspiring entrepreneurs receive 100-hour entrepreneurship development training in different districts,” he said.

The training is provided free of charge, and participants who successfully complete the course receive a stipend of Tk 5,000. Graduates are also given priority in accessing loan facilities.

Replying to a supplementary question from lawmaker Md. Mahbubul Alam(Kurigram-2), the finance minister said educated unemployment remains a major national challenge.

He observed that a large proportion of unemployed young people in Bangladesh come from the general education stream rather than technical or vocational backgrounds.

The government is therefore prioritising skills development programmes and expanding vocational education nationwide, he said.

Under the initiative, training institutions are being strengthened to provide job-oriented education, while certification systems are being developed to enhance employment opportunities both at home and abroad.

Khosru said the government’s focus is not only on training but also on ensuring employability through practical skills development, enabling young people to secure jobs in domestic and international markets.