The government has recently approved the "Startup Enterprise Loan Operation Procedure, 2081," aimed at providing loans of up to Rs 2.5 million to startups at a subsidized interest rate. The procedure, approved by the cabinet, outlines that the Industrial Enterprises Development Institute under the Ministry of Industry, Commerce, and Supplies will be responsible for implementing the startup loan program. This initiative is designed to offer concessional loans to entrepreneurs equipped with the latest knowledge, skills, and capabilities to drive startup ventures. The institute will issue a public notice inviting applications from those interested in availing themselves of these startup loans. This development is a positive step forward. With the ongoing exodus of young people, it is crucial for the government to create opportunities that encourage them to stay and build their futures at home. Promoting youth entrepreneurship is one of the most effective ways to achieve this goal, and the government's plan to launch the startup loan scheme is a promising move in that direction.
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Under this scheme, startup loans will be provided at an interest rate of three percent, with the enterprise or project itself serving as collateral. To facilitate this, one or more banks will be designated to disburse these loans. The procedure allows for the payment of the loan protection agency from the allocated loan amount. As per the guidelines, an entrepreneur can submit only one proposal, accompanied by a self-declaration stating that no concessional loans have been received from other agencies. Entrepreneurs who have already taken concessional loans from other sources will be ineligible for a startup loan until their existing loans are repaid. Proposals will be evaluated by a committee of experts, who will consider factors such as innovative thinking, the use of technology, the quality of business proposals, job creation potential, use of indigenous raw materials, infrastructure availability, financial stability, and the ability to manage the loan. Concessional loans will range from a minimum of Rs 500,000 to a maximum of Rs 2.5 million, with a maximum loan period of five years.
While these arrangements are promising, it is essential to ensure that the fund is not misused. There is a history of political interference where party leaders unduly influence processes to benefit their loyal supporters. To achieve the intended results, it is imperative to prevent such practices and ensure that the startup loans are allocated fairly and transparently. Those who have an intention to do something in Nepal and meet all the required conditions must be able to secure the loan without any hassles. This scheme, if implemented properly, has the potential not only to promote industrialization but also to generate employment opportunities for many within the country. This is likely to help control the mass exodus of youths seen in the country at present.
