Bangladesh Bank launches 2 million BDT collateral-free loan program for youth

Bangladesh Bank has launched a new program titled ‘Udyog’ to support young entrepreneurs by providing financing of up to 2 million BDT without requiring collateral. The initiative aims to identify and support 5,000 promising young entrepreneurs from various upazilas across the country through funding, training, and business assistance.

The SME and Special Programs Department released the detailed policy on September 13. The first phase of applications will be open from September 16 to October 15, 2026, for entrepreneurs in Bandarban, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur, and Netrokona districts. A second phase will follow from November 1 to November 30, 2026, for other districts.

Applicants can obtain forms from the Bangladesh Bank website, the SME portal, or scheduled banks. Required documents include a national ID or birth certificate, educational certificates, skill development training certificates (if available), and citizenship certificates from local ward councillors. Applicants do not need a pre-existing bank account to apply, as they can submit applications at any branch of a scheduled bank in their respective upazila.