Kathmandu, November 5
The government has called for project proposals for startup businesses.
The Industrial Enterprise Development Institute (IEDI) issued a notice on Wednesday inviting eligible entrepreneurs to apply for loans under the “Startup Enterprise Loan Operation Procedure.”
Based on a proposal from Minister for Industry, Commerce and Supplies Anil Kumar Sinha, the IEDI opened the loan application process for startups. Interested entrepreneurs have been given 21 days to submit their proposals. Applicants must meet the eligibility criteria specified in Section 4 of the procedure.
According to the notice, applicants should possess up-to-date knowledge, creative ideas, and specific skills and capabilities related to their field. Project proposals must be prepared in the prescribed format and can be submitted online.
Under the revised procedure, a startup entrepreneur can receive a maximum loan of up to Rs 2 million in the current fiscal year. Previously, the government had been providing loans of up to Rs 2.5 million at a 3 per cent interest rate to startups.
Following is the list for eligibility criteria for startup enterprises:
(1) Entrepreneurs intending to obtain a loan under this Procedure shall be required to meet the following eligibility criteria:
(a) The enterprise shall have been registered and in operation for less than ten years;
(b) The enterprise shall be registered as a private firm, partnership firm, company, or cooperative institution in accordance with prevailing laws;
(c) The enterprise shall not have recorded an annual turnover exceeding fifty million rupees in any fiscal year since its establishment;
(d) The enterprise shall not be an extension, branch, or continuation of an existing business enterprise;
(e) The enterprise shall be based on innovative and creative ideas and established with the potential for growth and scalability.
(2) Notwithstanding the provisions of Sub-section (1), the following types of enterprises shall not be deemed as startup enterprises for the purpose of obtaining a loan under this Procedure:
(a) Enterprises already registered as industries and operating under the prevailing laws;
(b) Enterprises engaged in the import and distribution of goods or services;
(c) Enterprises blacklisted under the prevailing laws;
(d) Enterprises registered after the date of publication of this Procedure;
(e) Enterprises registered as holding or investment companies under the Industrial Enterprise Act, 2076 (2019).
