KATHMANDU: The Ministry of Industry, Commerce, and Supply has officially approved and enacted the Start-Up Enterprises Loan Operation Procedure, 2081.
The procedure, approved on August 14, aims to simplify, clarify, and make the process of providing concessional loans more transparent, thereby encouraging entrepreneurs with innovative ideas, skills, and capacities to engage in start-up enterprises.
Under the new procedure, start-up loans can be obtained at a 3 percent interest rate, with enterprises and projects serving as collateral.
Specific criteria have been established for eligibility: the enterprise must not have been registered more than 10 years ago, and its annual turnover should not exceed Rs 150 million in any fiscal year since its inception.
Eligible entities include private firms, joint ventures, companies, and cooperative institutions registered with the relevant authorities.
One or more banks will be designated to provide these concessional loans, with installments to be deposited in a separate bank account.
The Industrial Enterprise Development Foundation will oversee the implementation of the start-up loan scheme, with a maximum loan period of five years.
Entrepreneurs are required to insure their enterprises or projects themselves.
Additionally, banks providing these concessional loans may charge a service fee of up to 0.1 percent for the subsidized loan.
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