Loans to entrepreneurs from minimum 5 lakhs to maximum 25 lakhs
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Out of 661 entrepreneurs selected for the current financial year, 78 have taken startup loans of Rs 82.5 million so far. The Industrial Business Development Foundation said that 97 people have opened accounts to take loans. According to the foundation, loans will be provided to all selected entrepreneurs within the coming June.
The institution 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. Among the selected entrepreneurs, 1,073 entrepreneurs made project presentations from the last week of December to the second week of March. Then on May 21, the foundation announced the names of 661 entrepreneurs eligible for startup loans.
In addition, on May 26, a notice was also issued on which entrepreneur should go to which branch of the National Commercial Bank. If the entrepreneurs recommended for loans do not contact the branch office of the specified bank within 45 days of the publication of the list, the project proposal and recommended amount will be automatically cancelled.
In the budget of the current financial year, the government has allocated 1 billion rupees for providing start-up 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. The institution has said that it will provide a loan of 776 million rupees.
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 21 crore rupees to 165 entrepreneurs. 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, business seal, copy of the contract if the project is operating on lease/rent, and a license to be obtained from other agencies according to the nature of the business should be taken to the designated bank branch.
It is mentioned in the notice of the establishment that the entrepreneurs who have received more than 50 percent of the credit assessment from the bank after the presentation of the selected project and the credit appraisal are recommended for providing loans on the basis of priority. The evaluation committee formed by the foundation based on the presentation of photos, videos, financial statements and other details of the proposer's business and also based on the question and answer of the evaluation committee. The government has allocated a budget of 73 crore rupees for disbursing start-up loans in the coming financial year.
