Bangladesh Bank's New 'Udyog' (UDYOG): Collateral-free loans and grants to upazila-based 5000 new young entrepreneurs

Bangladesh Bank has undertaken a groundbreaking program with the aim of eliminating unemployment, creating employment and economic growth in the country. Under this program named 'Udyog' (UDYOG - Upazila-Driven Youth Opportunity for Growth), 5000 new young entrepreneurs will be identified from the upazila level and given collateral-free loans and grants.

Main objective of the programThe main objective of this program is to search for talented young entrepreneurs at the upazila level, select them and materialize their business ideas through necessary funding and guidance. Through this, new employment will be created in the remote areas of the country and the local economy will expand.Who can apply?

• Age: Applicant age should be between 18 to 45 years.

• Location: Applicant must be a resident of own Upazila.

• New Initiative: The initiative must be completely new. This loan is not applicable for expansion of any ongoing business.

• Educational Qualification: Minimum educational qualification is not specified, but persons with technical or vocational training will be preferred.
• Other Conditions:Application cannot be made in case of previous default from any bank or financial institution. Individuals working in government, semi-government or autonomous organizations are also not eligible to apply under this programme.FUNDING AND GRANT AMOUNT

Selected entrepreneurs will be financed through blended financing.

• Loan Amount: An entrepreneur will get a maximum loan of 10 lakh rupees.

• Grant: 20%-50% of the total loan amount (Maximum Rs. 5 lakh) will be given as grant. That is, if an entrepreneur gets a loan of 10 lakh rupees, he can get a grant of up to 5 lakh rupees. This grant is non-refundable.

• Security: The biggest attraction of this program is that no collateral security or mortgage will be taken against the loan granted under it.

Application Process
The second phase of application has been started from 1 November 2026 in all upazilas of 56 districts, which will continue till 30 November 2026. (Note that the first phase of 8 districts has already closed its application process and the selection process is currently underway).

• Where to apply: Application should be submitted in the prescribed form at any scheduled bank branch of your upazila.

• Required Documents:Copy of National Identity Card, Educational Qualification Certificate (if any), Passport Size Photograph and Citizenship Certificate or Certificate issued by Local Public Representative (Chairman/Councillor) should be submitted along with the filled application form. The application form can be downloaded from the website of Bangladesh Bank (www.bb.org.bd) or from the websites of Scheduled Banks.Selection and Approval Process

After submitting the application, the upazila lead bank will verify it and send it to the district lead bank and periodically to the concerned department of Bangladesh Bank. The finalists will be selected through an impartial selection process involving Bangladesh Bank, other affiliates, bank representatives and experts from the respective sectors.

Final approval will be given based on the innovativeness, feasibility, market potential and employment creation potential of the entrepreneur's business idea.

This 'Udyog' (UDYOG) program of Bangladesh Bank has opened the door to a huge potential for the young generation of the country. For those who want to work on their own business idea but are held back by lack of capital, this is a golden opportunity. For details visit: www.bb.org.bd.