KATHMANDU, Aug 30: The government has announced a call for project proposals for startup enterprise loans. The Industrial Enterprise Development Institute (IEDI) issued a notice on Wednesday, inviting eligible entrepreneurs to submit their proposals for enterprise loans within 21 days.
According to Section 4 of the Startup Enterprise Loan Operation Procedure, 2081, entrepreneurs who meet the specified qualifications, can apply for the loans. The aspirants of startup enterprise loans have been asked to submit their project proposals in the given format. “Proposals should leverage innovative knowledge, ideas, skills, and abilities,” reads the notice issued by the IEDI.
Entrepreneurs can find the project proposal format and additional details on the IEDI's website at www.iedi.org.np.
Govt invites proposals for startup enterprise loans
The Ministry of Industry, Commerce, and Supplies approved the "Startup Enterprise Loan Operation Procedure, 2081" on August 14. This procedure aims to facilitate the provision of loans up to Rs 2.5 million to startups at subsidized interest rates.
Entrepreneurs can submit only one proposal and must provide a self-declaration stating they have not received concessional loans from other agencies. Those who have already received such loans will be ineligible for a startup loan until the previous loan is repaid.
A committee of experts will evaluate the proposals based on criteria including innovative thinking, use of technology, business presentation, job creation potential, use of indigenous raw materials, infrastructure availability, financial condition, and ability to repay the loan.
The loans, ranging from a minimum of Rs 500,000 to a maximum of Rs 2.5 million, will be offered at concessional interest rates. The maximum loan term is five years, and the repayment of the principal or interest must start one year after receiving the first installment.
Under the Procedure, startup loans will be provided at a three percent interest rate, with the enterprise and project serving as collateral. One or more banks will be appointed to disburse these loans. Additionally, provisions have been made to pay loan protection agencies from the allocated loan amount.
Startup enterprise loans are available only to businesses registered for no more than 10 years. The annual turnover of these businesses must not exceed Rs 150 million in any fiscal year following their establishment. Eligible entities include private firms, partnership firms, companies, and cooperative organizations registered with the industry registration body.
This government initiative aims to encourage new business ventures by providing financial support at favorable terms, helping to foster innovation and economic growth in the country.
