New entrepreneurs will be able to access collateral-free loans of up to Tk10 lakh, Finance Minister Amir Khosru Mahmud Chowdhury told Parliament on Tuesday.

He made the remarks while responding to a question from Sylhet-3 lawmaker Mohammad Abdul Malik during the question-and-answer session of the Jatiya Sangsad.

The minister said, “There is currently no interest-free loan scheme for young entrepreneurs operated by Bangladesh Bank. However, the central bank has been running several refinancing schemes from its own funds to facilitate loans on easy terms and at low interest rates.”

He added that the “New Entrepreneur Refinance Scheme” under the cottage, micro and small enterprise sector has been expanded significantly, with its fund increased from Tk100 crore to Tk500 crore.

Under this scheme, new entrepreneurs can obtain loans of up to Tk10 lakh without collateral at a maximum interest rate of 7%. In addition, loans of up to Tk35 lakh are available against collateral.

The minister further informed Parliament that another refinancing fund titled the “Start-up Fund” has been proposed to support entrepreneurs. The fund, worth Tk500 crore, will provide loans at an interest rate of only 4%, along with equity support, aimed at making access to finance easier for start-ups.