Bangladesh Bank to form Tk 500cr start-up fund

Bangladesh Bank today decided to form a Tk 500 crore fund in order to help new entrepreneurs aged 21 years and above start businesses.

The fund will be constituted in the form of a refinance scheme, meaning banks will firstly disburse loans to clients and the banking regulator will later reimburse the fund to banks.

The Bangladesh Bank is yet to draw up a detailed policy to this end.

New entrepreneurs will be allowed to manage funds from the refinance scheme at a maximum interest rate of 4 percent and banks will get funds at 0.5 percent interest from the central bank.

The maximum repayment tenure of the fund is five years.