'Start-Up Enterprises Loan Operation Procedure' endorsed

The Ministry of Industry, Commerce, and Supply has approved the 'Start-Up Enterprises Loan Operation Procedure, 2081' and brought it into effect.

Sharing that the activities to provide concessional loans would be made simple, clear, and transparent to encourage entrepreneurs with the latest knowledge, ideas, skills, and capacity to engage in start-up enterprises, the ministry approved the procedure recently.

As per the procedure, start-up loans can be obtained at a three per cent interest rate, with enterprises and projects used as collateral.

The procedure has set specific criteria for start-up businesses. An enterprise would be eligible for a concessional loan if it was registered within the last 10 years, and its annual turnover does not exceed Rs 150 million in any fiscal year since its establishment.

Enterprises registered as private firms, joint ventures, companies, or cooperative institutions with the relevant authorities would also be entitled to concessional loans.

One or more banks would be assigned to provide the concessional loans, and the instalments should be deposited in the bank by opening a separate bank account.

The Industrial Enterprise Development Foundation would implement the start-up loan scheme, with a maximum loan period of five years.

However, entrepreneurs must arrange insurance for the enterprise or project themselves. According to the procedure, the bank providing the start-up concessional loan can impose a maximum service charge of 0.1 percent for the subsidized loan.