Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Interest in startup ventures among Nepali youth is surging, with the government receiving an overwhelming 5,158 project proposals under the Startup Enterprise Loan Program for the fiscal year 2081/82 (2024/25). The initiative, spearheaded by the Ministry of Industry, Commerce, and Supplies, seeks to empower entrepreneurs with innovative ideas by providing collateral-free loans at a subsidized 3% interest rate.
According to Joint Secretary and Ministry Spokesperson Baburam Adhikari, the government allocated NPR 1 billion for the program. The objective is to foster entrepreneurship by encouraging individuals with creative visions, skills, and potential to engage in startup ventures.
Overwhelming Response
The call for proposals was announced on Bhadra 11, 2081 (August 27, 2024), with a submission deadline of Bhadra 31, 2081 (September 16, 2024). Both offline and online channels were used to collect applications. The influx of over 5,000 proposals demonstrates the growing enthusiasm for entrepreneurial ventures among Nepali youth.
The ministry noted that the Startup Enterprise Loan Program operates under the newly approved Startup Loan Operation Procedure 2081. Agreements have been made with the Rastriya Banijya Bank and the Deposit and Credit Guarantee Fund to ensure the smooth disbursement and security of loans.
Preliminary Screening Underway
The Industrial Business Development Institute, tasked with overseeing the program, is currently evaluating proposals to prepare a preliminary list of eligible projects. Spokesperson Adhikari stated that shortlisted entrepreneurs would be invited to present their business plans on designated dates. Projects that fail to meet the criteria or do not participate in the presentations will be excluded from the selection process.
Proposals scoring 50 or higher during evaluation will be prioritized for loan recommendations. Entrepreneurs approved for loans must repay the principal and interest within the designated timeline.
Eligibility Criteria
To qualify, enterprises must meet the following conditions: – Be registered within the last 10 years as a private firm, partnership, company, or cooperative. – Have an annual turnover not exceeding NPR 150 million in any fiscal year. – Propose innovative and scalable business ideas.
Applicants must submit copies of their business registration certificate, PAN certificate, and tax clearance documents from the previous fiscal year. Only one proposal per entrepreneur is allowed, and incomplete or unclear submissions will be disqualified.
A Diverse Array of Ideas
The proposals received reflect a wide range of entrepreneurial interests, including bakeries, handicrafts, multi-purpose agricultural farms, and eco-friendly industries such as e-rickshaw manufacturing and sanitary pad production. Other notable sectors include dairy farming, beauty parlors, printing presses, and spice production.
The program highlights Nepal’s untapped entrepreneurial potential and the government’s commitment to fostering innovation and economic growth. By addressing financial barriers, the initiative aspires to create a thriving startup ecosystem in the country.
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