To boost innovation and entrepreneurship, Bangladesh Bank has launched a BDT 500 crore ‘Startup Loan Fund’, offering loans at a 4% interest rate, with a maximum limit of BDT 8 crore per venture.

Banks and financial institutions will be required to contribute 1% of their 2021 profits to the fund annually. Entrepreneurs must be at least 21 years old, and the loan limit will depend on the age of the startup. The repayment term can extend up to 8 years.

Only banks or financial institutions with a non-performing loan (NPL) ratio below 10% will be eligible to participate in the fund.