Sir Richard Branson wants special loans for young entrepreneurs

Sir Richard Branson has called on the British government to extend special loans to encourage more would-be tycoons. According to the Virgin boss, instead of borrowing money for tuition fees, youngsters should be given cash to start their own businesses.

Sir Richard, whose Virgin Media business runs a Pioneers project for young people, was talking at a Global Entrepreneurship Congress in Liverpool.

However, his comments came against the whopping increase in credit card rates by his company, Virgin Money from 16.8 per cent to 24.9 per cent. Around 20,000 card holders would take a hit by the decision to up the interest charged by 50 per cent.

According to analysts, it would probably not augur well for Northern Rock customers after the bailed-out bank was taken over by Virgin Money.

Branson is trying to promote plans that would see school leavers who opt not to go to university be eligible to secure a student load to start a business.

He told the conference in Liverpool that it would be ''a great way of kick-starting thousands of new businesses.''