The Ministry of Industry, Commerce and Supply has approved and implemented the 'Startup Enterprise Loan Operation Procedure, 2081'. The Ministry has approved the procedure on 30th of July last year to make the work related to subsidized loans simple, clear and transparent by encouraging entrepreneurs with the latest knowledge, thinking, skills and abilities to get involved in start-up ventures.

According to the procedure, the startup loan can be obtained at three percent interest rate by considering the enterprise and project as collateral. The procedure prescribes certain qualifications for startup ventures .

In this, the enterprise business must not have been registered for more than ten years and the annual turnover must not have exceeded 150 million rupees in any financial year after its establishment. Similarly, enterprises and businesses registered with the industry registration body as private firm, partnership firm, company or cooperative organization will be eligible to get such a loan.

Enterprises that are not registered as an industry according to prevailing laws, import and distribute goods and services from abroad, blacklisted and registered as holding and investment companies according to the Industrial Business Act, 2076 will not be considered eligible for startup loans.  According to the

procedure, one or more banks can be appointed to provide start-up loans, and there is a provision that the amount allocated for lending can be used to pay the loan protection corporation.

Similarly, the amount of the loan should be deposited in a separate account in the bank and the amount remaining in the account should be returned to the Federal Reserve Fund at the end of the financial year. The startup loan program will be implemented by the Industrial Business Development Foundation. The maximum period of such a loan will be five years, and after one year of taking the first installment of the loan, the principal or interest must be returned.