10,244 entrepreneurs have proposed projects for startup enterprise loans. The Industrial Business Development Foundation had issued a 21-day notice on 19 Kartik inviting project proposals for startup enterprise loans.

Umesh Gupta, executive director and engineer of the foundation, said that 2,041 entrepreneurs have registered project proposals at the foundation. ‘8,203 people have registered their proposals online,’ he said.

Since the list of projects has been made public, we will check whether they are as per the criteria specified in the Startup Enterprise Loan Operation Procedure, 082,’ Gupta said, ‘We will shortlist the projects that meet the criteria and then make a list again.’

Entrepreneurs who are registered as private firms, partnership firms, companies or cooperatives with the relevant industry registration bodies, have high growth potential through transformation into an enterprise business by using innovative and creative thinking and technology in the production of goods or services, have adopted technology, have not exceeded 10 years since the enterprise business was registered, have not exceeded Rs 150 million in any financial year after registration, and have started a new enterprise business without merging or splitting the existing enterprise business will be eligible for startup loans.

‘We invite projects that meet the criteria to submit business plans and look at the credit appraisal, then we make public the list eligible for loan disbursement,’ said Gupta.

From the presentation of the selected projects and the proposals that score more than 50 percent of the points received after credit appraisal by the bank, the proposal that scores the highest will be prioritized and recommended for loan. The evaluation committee formed by the foundation will have to submit the photos, videos, financial statements and other details of the proposers’ business and the questions and answers of the evaluation committee to the executive director of the foundation for approval.

This is the third time that the foundation is going to disburse startup enterprise loans. The government has allocated a budget of Rs 730 million for disbursing startup loans for the current fiscal year. Of this, 25 percent should be allocated for loan security (insurance) and the loan security fund, but 10 percent will be enough this year, said Executive Director Gupta.

The foundation has stated that 3 percent will be deducted from the budget for administrative expenses and the remaining amount will be disbursed as loans. The institution had previously been distributing loans to entrepreneurs from a minimum of Rs 5 lakh to a maximum of Rs 2.5 lakh. However, due to the low budget this year, the institution has stated that it will distribute loans up to a maximum of Rs 2 million.

The selected startups will receive loans from a minimum of Rs 5 lakh to a maximum of Rs 2 million at an interest rate of three percent. The loan period will be a maximum of five years, and the procedure states that the principal or interest amount should be returned after one year of receiving the first installment.