KATHMANDU, May 6: The government has selected 661 projects for startup enterprise loans in the current Fiscal Year (FY) 2024/25.
According to the Startup Enterprise Loan Operation Procedure, 2080, the Industrial Enterprise Development Institute (IEDI) has selected 661 projects with innovative ideas, skills, and capabilities for the loan.
According to Umesh Gupta, the Executive Director of the IEDI, when the call for proposals for enterprise loans was made, 1,314 proposals were received. Through various processes, 1,073 proposals were shortlisted.
Through the presentation process, out of the 1,073 proposals, 661 project proposals were selected. Entrepreneurs whose projects have been selected are instructed to contact the designated bank branch within the next 45 days to secure Rs. 2.5 million in loan at 3% interest rate.
661 new industries registered in last 10 months in Kailali
Among the selected projects, most are related to agriculture and livestock farming, boutiques and clothing, processing industries, handicrafts and garments, sculpture, footwear, furniture, and homestays.
The government has allocated Rs 1 billion for startup loans in the current fiscal year.
The government had issued Rs. 250 million in loans to 165 projects during FY 2023/24, recovering Rs. 18 million in principal and interest. ।
Gupta said the government was likely to set aside more than one billion rupees for the new fiscal year starting mid-July.
The Ministry of Industry, Commerce, and Supplies administers the government fund allocated under the ‘Startup Enterprise Loan Operating Procedure 2080,’ with provisions for loans of up to Rs 2.5 million to start-ups at a subsidized interest rate of 3 percent.
The procedure specifies that for loans disbursed by the bank, a single installment will be provided for loans up to Rs 500,000, two installments for loans up to 1.5 million, and three installments for loans above that amount. To ensure the security of the loan, the IEDI has a provision that 25 percent of the disbursed loan amount must be kept in the Startup Enterprises Credit Fund, within the approved budget limit.
The procedure specifies that startups eligible for the loan must have been registered as a company for no more than seven years. Additionally, the company must meet the following criteria: a paid-up capital between Rs 200,000 to 1 million, an annual turnover not exceeding Rs 20 million, and fixed capital (excluding land and property) not exceeding Rs 20 million.
According to the procedure, startup enterprise loans cannot be provided to entities that are not legally registered, that import goods or services from abroad for resale, are blacklisted, or are registered as holding or investment companies under the Industrial Enterprises Act, 2076.
The procedure identifies 16 specific sectors eligible for startup enterprises. These include agriculture and livestock, forest products, tourism promotion, entertainment and hospitality, science, information technology and communications, human health services, and education and learning.
Entrepreneurship loans will also be available in areas related to food production and processing, waste management and environmental protection, disaster management, alternative and renewable energy, and climate change mitigation.
