77 project proposals for start-up enterprise loans

The government has received 77 project proposals for startup enterprise loans. The Industrial Enterprise Development Institute (IEDI) issued a notice on August 27 inviting these proposals, and by August 30, all 77 submissions had been received, according to Umesh Kumar Gupta, the executive director of IEDI.

The Startup Enterprise Loan Operation Procedure, 2081 B.S., allows eligible entrepreneurs to submit proposals for funding their respective projects. This procedure was approved by the Ministry of Industry, Commerce, and Supplies on August 14. As part of the Appropriation Bill, this procedure must be renewed annually to facilitate the flow of startup loans, leading to the current call for project proposals.

Entrepreneurs must submit their proposals in the format specified in Schedule 3 of the procedure within 21 days of the notice. Proposals can be submitted either in person at the Institute's office or online via the Institute’s website.

Selected startups will receive loans ranging from NPR 500,000 to NPR 2.5 million at an interest rate of 3%. The loan term is up to five years, with repayments beginning one year after the first installment.

The procedure requires that the bank use the approved business or project as collateral when floating the credit. Entrepreneurs themselves are responsible for insuring their businesses or projects. The bank may charge a service fee of up to 0.1% of the loan amount.

Eligibility criteria specify that the business must be registered and operational for less than 10 years, with annual revenue not exceeding NPR 150 million. Only private firms, partnerships, companies, or cooperatives are eligible to apply.

The procedure allows for the designation of one or more banks to disburse the startup loans. A separate account must be opened for the loan amount, and any remaining funds must be returned to the federal treasury at the end of the fiscal year.

Each entrepreneur may submit only one proposal and must declare that they have not received concessional loans from other sources. Proposals from those who have received concessional loans from other entities will not be considered until their financial liabilities are settled.

The Institute has already disbursed over NPR 170 million to 165 out of 183 selected startup projects.

In the current fiscal year's budget, the government has announced several measures to support and strengthen startup ecosystems. These include establishing an NPR 1 billion 'Nepal Startup Fund,' forming a Startup Board, launching Business Incubation Centers in all seven provinces, and encouraging investments in private equity and venture capital funds.