In the current financial year, 661 people will get startup loans at an interest rate of three percent. The Industrial Business Development Foundation issued a notification on Sunday and recommended 661 entrepreneurs for startup loans.

According to the foundation, if the entrepreneurs recommended for loans do not contact the branch office of the specified bank within the next 45 days, the project proposal and recommended amount will be canceled automatically. It is mentioned in the notification issued by the establishment that which entrepreneur will go to which branch of which bank will be published by next Thursday.

In the budget of the current financial year, 1 billion rupees were allocated for providing startup loans. According to the Ministry of Industry, Commerce and Supply, up to 3 percent of the allocated budget will cover administrative expenses of the establishment, 25 percent for loan protection (insurance) in the deposit and loan protection fund and the remaining amount will be paid to entrepreneurs. "30 million for the administrative expenses of the establishment, 194 million for loan security and the remaining 776 million will be distributed without collateral," said a ministry source.

Foundation will disburse loans to entrepreneurs from a minimum of 5 lakhs to a maximum of 25 lakhs. In the last financial year, the foundation provided loans of Rs 21 crore to 165 entrepreneurs. According to the ministry, entrepreneurs who received loans last year have already returned 18 million rupees. According to the ministry, the entrepreneurs who received loans last year are employing 4 to 5 people on an average.

business registration and renewal certificate, PAN/VAT registration certificate, entrepreneur's citizenship certificate, tax payment certificate for the financial year 2080/81, passport size photograph of the official person, seal of the business, copy of the contract if the project is operating on lease/rent and the permission letter to be obtained from other agencies according to the nature of the business should be taken to the designated bank branch.

Foundation called for project proposals for lending on August 11. At that time, 5 thousand 158 entrepreneurs registered their proposals online and physically. Among them, 1 thousand 314 entrepreneurs were selected for project presentation on December 19, according to the foundation. Out of those selected, 1,073 entrepreneurs made project presentations from the last week of December to the second week of March.