Bangladesh Bank has taken an initiative to launch a new loan scheme aimed at creating employment opportunities for July fighters and unemployed youths and helping them become entrepreneurs. Under the proposed ‘Udyog’ scheme, July fighters and unemployed young people will be offered loans on easy terms.

Bangladesh Bank held a meeting with the Association of Bankers, Bangladesh (ABB) on Tuesday afternoon. Following the meeting, ABB Chairman Mashrur Arefin said the fund size of the ‘Udyog’ scheme could range between Tk 500 crore and Tk 1,000 crore. Other existing schemes for unemployed youths will also be brought under the initiative.

He said the project could be launched within the next three months.

Educated unemployed youths in rural areas will receive priority under the new lending programme. Financing on easy terms will be arranged to help them engage in businesses or other income-generating activities. However, the scheme has primarily been designed with unemployed July fighters in mind, with the aim of creating employment opportunities and helping them become entrepreneurs.

Mashrur Arefin said Bangladesh Bank will soon issue a circular outlining the ‘Udyog’ scheme. Banks will begin disbursing loans under the scheme after the circular is issued.

Relevant stakeholders believe the initiative could increase opportunities for unemployed youths to become entrepreneurs. In particular, the loans could help educated young people in rural areas start small businesses or income-generating activities with limited capital.

However, details regarding the interest rate, collateral requirements, maximum loan amount and eligibility criteria will be announced through Bangladesh Bank’s circular.