1,314 projects have been selected for the first phase among the applications for startup enterprise loans. The Industrial Business Development Foundation issued a notification on August 11 calling for submission of project proposals within 21 days.

At that time, 5,250 entrepreneurs had submitted project proposals for startup enterprise loans. Among them, 1,314 projects have been selected for the second phase of evaluation. 

Selected projects will present their commercial proposals from December 28 to March 11. Engineer Umesh Kumar Gupta, executive director of the institute, said that only after the presentation, the final list of entrepreneurs selected for startup venture loans will be published.

"Entrepreneurs submitted 5,250 proposals physically and online," he said, "out of which 1,314 were selected." Now we call the project to present a business plan and look at the credit appraisal, then we publish the list eligible for loan.'' It is mentioned in the procedure that only those who are doing enterprise business are eligible. It is mentioned in the procedure that only enterprises of private firm, partnership firm, company or cooperative organization can get this loan. 

Projects that do not meet these criteria are not selected. The Ministry of Industry, Commerce and Supply approved the procedure on July 30. According to the Appropriation Bill, as the procedure has been introduced, there is a provision that the procedure should be approved every year for disbursing loans to startup enterprises. Accordingly, the foundation called for project proposals.

The selected startups will get a loan from a minimum of five lakh rupees to a maximum of Rs 25 lakh at an interest rate of three percent. The duration of this loan will be a maximum of five years and the procedure is to start repaying the principal or interest after one year of taking the first installment. According to the

procedure, the bank will have to keep the approved business or project as collateral while disbursing the loan. Business or project insurance is mentioned in the procedure that the entrepreneur has to do himself.

It is mentioned in the procedure that the bank providing the loan may charge service fee up to a maximum of 0.1 percent of the loan amount from the related entrepreneur for administrative or service fee. According to the procedure, one or more banks can be appointed to provide startup loans. 1 billion rupees has been allocated for startup enterprise loans for the current financial year. 

'25 percent of the allocation budget, i.e. 25 million rupees, will have to be paid to the deposit and loan protection fund,' he said, 'the remaining 3 million rupees will be used for office operations, and the remaining 72 million rupees will be given as a loan.' Gupta also said that the goal is to provide start-up enterprise loans to people.

The loan amount must be deposited in a separate account in the bank, and the amount remaining in the account must be returned to the Federal Reserve Fund at the end of the financial year. It is mentioned in the procedure that an entrepreneur cannot submit more than one proposal. The business of not taking a concessional loan from any other agency is also in the procedure where the entrepreneur has to self-declare. According to the institution, the applicant who has taken a concessional loan from any other agency will not be given a loan according to this procedure until the loan is repaid.