The government has approved the Start-up Enterprises Credit Operation Work Procedure 2023. In line with the provisions outlined in the current fiscal year’s budget, the government is set to disburse loans to start-up enterprises at an interest rate of three percent.
For the current fiscal year 2023/24, the government has allocated Rs 250 million to encourage individuals with innovative knowledge, thinking, skills, and abilities to venture into start-up enterprises. An agreement has been reached with Rastriya Banijya Bank to mobilize this allocated amount.
The Ministry of Industry, Commerce, and Supplies has disclosed that a Memorandum of Understanding has been signed, designating Rastriya Banijya Bank to oversee all processes of loan appraisal, loan disbursement, and recovery of loan principal/interest for selecting eligible entrepreneurs.
According to the approved procedure, proposals were invited by the Industrial Enterprise Development Institute (IEDI) on February 2 to provide subsidized loans to startups. By February 22, a total of 1,658 project proposals were received.
The IEDI has prepared a preliminary list of the projects that meet the specified criteria and invited them for presentation on predetermined dates and times. Projects unable to facilitate presentations within the specified timeframe are automatically excluded from the selection process.
The presented projects will undergo credit appraisal by the bank, with loans recommended only for those scoring more than 50 points. The recommended entrepreneurs are required to sign an agreement with the bank and repay the loan within the stipulated time as per the bank regulations.
The procedure has set certain criteria for enterprises to qualify for start-up enterprise loans. Based on these criteria, the IEDI, with the help of the Nepal government and experts, has prepared the initial list of received projects.
