Bangladesh Launches BDT 50 Million Fund for Returnee Migrants

The SME Foundation and Karmasangsthan Bank have launched a BDT 50 million financing initiative to provide affordable loans for returnee migrant workers looking to establish or expand businesses in Bangladesh.

Thousands of Bangladeshi migrant workers return home every year carrying years of professional experience, practical skills and savings earned abroad. Many dream of starting a business and creating a stable future for their families, yet limited access to affordable finance often stands in the way. A new financing programme backed by government agencies and international partners hopes to change that by helping returnees turn their experience into successful enterprises.

New financing programme supports migrant entrepreneurs

The SME Foundation and Karmasangsthan Bank have launched a BDT 50 million financing initiative to provide affordable loans for returnee migrant workers looking to establish or expand businesses in Bangladesh. The programme has been introduced with support from the International Labour Organization (ILO) Bangladesh and the Embassy of Switzerland in Bangladesh under the SME Foundation's Credit Wholesaling Programme. The initiative is designed to strengthen the economic reintegration of migrant workers by helping them invest the knowledge, experience and savings gained during overseas employment into productive businesses that generate income and employment.

Eligible entrepreneurs can access loans of up to BDT 2.5 million at a concessional interest rate of 7 percent. Loans of up to BDT 1 million will be available without collateral, while borrowers will benefit from repayment periods of up to four years and grace periods of up to six months, giving new businesses more time to become financially stable.

Returnees encouraged to build businesses at home

The programme focuses on migrant workers who want to establish businesses in manufacturing, services and trading after returning to Bangladesh. Priority will also be given to newly returned migrants who have not previously received formal financial support, helping remove one of the biggest barriers faced by aspiring entrepreneurs.

Returnee entrepreneur Pradip Kumar Das said access to affordable financing can determine whether a business idea succeeds or remains only an ambition. He explained that although he returned home with valuable skills, confidence and a clear vision for his future, securing affordable capital proved to be his greatest challenge. He believes the new initiative will allow many returnees to invest in themselves, support their families and create employment opportunities within their communities.

The programme will also prioritise entrepreneurs who have already completed reintegration programmes, entrepreneurship training or business development services offered through institutions such as the Ministry of Expatriates' Welfare and Overseas Employment, the Wage Earners' Welfare Board, the Bureau of Manpower, Employment and Training and Technical Training Centres.

Partnership strengthens reintegration and economic growth

Speaking at the agreement signing, Industries, Commerce, Textiles and Jute Minister Khandaker Abdul Muktadir said migrant workers have made an enormous contribution to Bangladesh's economy through remittances and overseas employment. He said supporting their entrepreneurial ambitions after they return home can transform those earnings into productive investment, create jobs and promote inclusive economic growth, while ensuring women and young returnees receive equal opportunities.

ILO Bangladesh Country Director Max Tuñón said returning home marks the beginning of a new chapter rather than the end of the migration journey. He noted that when returnee migrants have access to finance, business support and a favourable business environment, they can build sustainable enterprises that strengthen local economies and create decent work for others.

The SME Foundation will oversee the programme through regular monitoring and field verification to ensure the financing reaches eligible beneficiaries. The initiative forms part of broader efforts by the ILO and the Embassy of Switzerland to promote safe migration, productive employment and stronger livelihoods for returnee migrant workers across Bangladesh.