77 startups offer concessional loans

Eligible entrepreneurs can submit project proposals as per Startup Enterprise Loan Procedures, 081. The Ministry of Industry, Commerce and Supply approved the procedure on July 30. According to the Appropriation Bill, the procedures have to be approved every year for disbursing start-up enterprise loans. Accordingly, the Foundation has called for project proposals.

Entrepreneurs with the latest knowledge, thinking, skills and abilities have to submit a project proposal in the format as per schedule-3 of the procedure within 21 days of the notification. Entrepreneurs can go to the institute's office and submit project proposals online through the institute's website.

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. The procedure also mentions that the interest rate of this loan will be three percent per annum. 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 should be done by the entrepreneur himself. It is mentioned in the procedure that the lending bank 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 when disbursing the loan. For

startup enterprise loans, it is mentioned in the procedure that the industry/business has not been registered for more than 10 years, the annual turnover has not exceeded 150 million, and the new enterprise business has not been merged or divided. It is mentioned in the procedure that only the enterprises of private firm, partnership firm, company or cooperative organization can get this loan. According to the procedure, one or more banks can be appointed to provide startup loans. The loan amount should be deposited in a separate bank account and the remaining amount in the account should 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. Behora, who has not taken a concessional loan from any other agency, is also required to self-declare by the entrepreneur. According to the foundation, 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 paid off.

Although the government has been mentioning in the budget for years that it will give loans to startups, according to the 'Startup Enterprise Loan Operation Procedure, 080' which came out in the last fiscal year according to the appropriation bill, loans have already been provided to 65 people. The Industrial Business Development Foundation has given loans to 165 out of 183 projects selected for startup enterprise loans. Gupta, executive director of the foundation, said that loans of more than 17 crore rupees have been provided to the entrepreneurs of those startup projects.

The government has announced that it will set up a ``Nepal Startup Fund'' worth Rs 1 billion to address the financial needs of startup entrepreneurs in the budget of the current financial year. "In order to increase youth participation in entrepreneurship, an entrepreneurial environment will be created by developing an ecosystem for startups and innovation," the budget says, "A startup board will be formed to facilitate and regulate startup entrepreneurs. A Nepal startup fund of 1 billion will be established to address the financial needs of startup entrepreneurs. It is also mentioned in the

budget that business incubation centers will be operated in each province to transform the entrepreneurial thinking of the youth into businesses. "Credits from banks and financial institutions will be encouraged to flow into innovation," the budget states, "an arrangement will be made to invest funds in private equity funds and venture capital funds." Nepal Startup Fund and Startup Board National Startup announced by the government in the budget It is mentioned in Enterprise Policy-080.