Govt’s startup enterprise loan program: 1,314 projects make preliminary list

January 5, 2025, 03:37:38 PM |

KATHMANDU: The government of Nepal has announced that 1,314 projects have been shortlisted for the “Startup Enterprise Loan” program for the current fiscal year 2081/82 (2024/25). The Industrial Enterprise Development Institute (IEDI) selected these projects from a total of 5,158 applications and published the preliminary list.

Presentation Schedule and Criteria

According to the IEDI, shortlisted project proposers will present their ideas starting from January 12, 2025 (Poush 28, 2081). Each day, presentations will be conducted in four sessions, with five proposals per session. Each presentation will last 10 minutes, during which proposers must provide comprehensive project details, including innovative aspects, market potential, raw material supply, infrastructure, and employment generation.

A one-minute video showcasing the enterprise’s operations and visuals is mandatory during the presentation. The selected projects after this process will receive startup loans under the program.

Loan Details

The government has allocated NPR 1 billion for this program, aimed at providing collateral-free loans at a subsidized interest rate of 3%. Loans will range from a minimum of NPR 500,000 to a maximum of NPR 2.5 million, with a repayment period of up to five years. Loan repayment begins one year after receiving the first installment.

Eligibility Requirements

To qualify for the loan:
1. The enterprise must be registered as a private firm, partnership, company, or cooperative.
2. It should not have completed more than 10 years since registration.
3. Its turnover in any fiscal year should not exceed NPR 150 million.
4. The business must be new and not a restructured or split entity.

Enterprises involved in importing and distributing goods or services, blacklisted entities, and those registered under the Industrial Enterprise Act, 2076 as holding or investment companies are not eligible.

Application Process and Milestones

The program was implemented under the Startup Enterprise Loan Operating Guidelines, 2081. The government signed agreements with Rastriya Banijya Bank for loan disbursement and with the Deposit and Credit Guarantee Fund for loan security.

The IEDI invited project proposals on August 28, 2024 (Bhadra 11, 2081), with the application period closing on September 15, 2024 (Bhadra 31, 2081). Both online and offline applications were accepted, resulting in 5,158 project submissions.

Shortlisted applicants must attend presentations on scheduled dates. Failure to appear will result in disqualification. Proposers must bring original copies of business registration and renewal certificates, PAN/VAT certificates, tax clearance documents, and citizenship certificates.

This program aims to encourage individuals with innovative knowledge, skills, and ideas to engage in startup ventures, fostering economic growth and employment generation in Nepal.

Fiscal Nepal |

Sunday January 5, 2025, 03:37:38 PM |