Sure-fire ways of getting an ICT loan in Bangladesh

Bangladesh is recognized as the third-largest population to outsource their resources through the internet and mainly through freelancing. However, when it comes to start-ups, many struggle to gain a firm foothold. By the entry of 3G internet in 2013, usage has boosted over 22% by the end of 2014.

Needless to say, the government has been taking steps to realize the dreams of a Digitalized Bangladesh; and have introduced multiple ways to broaden the field of entrepreneurship in multiple sectors alongside including ICT over the years. Along with the Government, private organizations have started offering loans and grants to realize the potential of these budding ventures. 

Here are some ways of getting a loan for an ICT organization or start-ups:

StartUp Bangladesh

The Government has taken the initiative to make an Eco-system where entrepreneurship can be nourished to realize their full potential. This effort will allow the country to innovate at a much faster rate. And enhance the ability to create new jobs and to develop technical skill; all leading to realize the vision of Digital Bangladesh.  

In support of these objectives, the government has created a fund under iDEA project. The Investment will provide all the necessary capital to pick up the pace in development and achieve success in the planned businesses and the process remains transparent, impartial and accountable.

Criteria for Application: 

The criteria to receive any loans or investment grants from StartUp Bangladesh are divided into the following categories:

  • IDEA SUPPORT – This requires a feasible business plan and an executable business plan.
  • VENTURE CAPITAL –
  • Seed stage: Requires prototype of a business model and plan.
  • Growth stage: Requires a viable product and an existing customer base.
  • Guided start-up: Requires a start-up idea under national interest.
  • TARGETED INVESTMENTS – This fund may take part as a collaboration under the Public-Private Partnership (PPP) model or other entities that seem fit for this investment module that includes training up facilities.
  • STRATEGIC PARTNERSHIP – This fund may take part in partnerships with local or international institutes to acquire the desired requirement for entrepreneurship development.
  • CO-INVESTMENTS – This fund may enter with other venture capital funds or funding entities that will help the development while sharing risk factors for the business, usually for larger investments.

Any application submitted is reviewed by a board of committee members who rank the top in the ICT industry and the procedures are then followed through step by step accordingly, all of which is listed in the official website of StartUp Bangladesh.

Bangladesh Bank 

The government has been taking steps to prioritize the roles of entrepreneurship in Bangladesh towards the ICT sector and has introduced the ESF (Entrepreneurship Support Fund) for multiple sectors in the country.

Included are ICT and the Agricultural sector while the previous EEF loan system that contained zero interest is abolished. However, this seemed unfruitful as most clients had failed to meet the expected outcomes. The ESF has a four-year grace period set, after which clients will have to pay 25% principle amount and interest every year. Which is a different approach from the previous EED loans. Clients themselves have to provide 51% as the impartiality of the project cost and invest it within one year after securing the approval from the Investment Corporation of Bangladesh (ICB).

Criteria for Application: 

  • ICT business model which needs to be feasible.
  • Cannot take any other loans for the project while in this program.
  • Needs authentication from clients – cannot be a defaulter from any banks in Bangladesh.

IDLC Finance Limited

A program launched in 2015 for financing for ICT entrepreneurs. It offers tailored solutions to boost businesses for their clients. The program “IDLC Udbhabon Loan” is in association with BASIS organization. However, it is not only financial services for ICT companies; but will also refer to corporate clients to BASIS if software purchases are required. And the customers will receive special discounts in this manner.

Criteria for Application:

To check for eligibility for the “IDLC Udbhabon Loan”; clients need to be 20 to 60 years of age. And the business applied for needs to be in two years of operation. However, the time of operation is halved for female entrepreneurs. After application, IDLC will reach out if the criteria’s are met and it is something they look forward towards investing.

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