213 startups are ineligible for loans
Two hundred and thirteen companies that submitted proposals for startup enterprise loans have been excluded. Out of the 382 applications that submitted project proposals for enterprise loans, the company was excluded from the first phase.
The Department of Industry had published a notice on March 16 to submit project proposals to start-up entrepreneurs willing to take loans in accordance with Section 8 of the Startup Enterprise Loan Fund Procedure, 2079.
According to the department, during the initial approval of the submitted application, it is not included in the additional evaluation based on the criteria mentioned in the section 2 (j) and 4 (1) of the procedure.
It was arranged that the paid-up capital should be more than five million rupees, the total income (income) of the enterprise should not be more than five million rupees per year, the fixed capital (excluding the value of real estate) should not be more than two million rupees, and the number of full-time workers in the enterprise should not be more than 10 people.
The procedure provides for a maximum loan of Rs. It is mentioned in the procedure that the loan will be provided in two installments. Startup enterprises will get loans for seven years through government-funded commercial banks.
In such a loan, the loan can be repaid only after three years. The government had allocated Rs 250 million for such loans in the current financial year. Initially, the budget was allocated to cover 100 startups across the country.
3 percent interest
Nepal Rastra Bank will select banks and financial institutions to provide loans of Rs. 25 lakhs to startup entrepreneurs. It is mentioned in the procedure that the loan is available at three percent interest rate.
The Central Bank will recommend for disbursement of loans through commercial banks wholly or mostly owned by the Government of Nepal.
Based on the recommendations made by the selection committee, the central bank will appoint a bank to disburse the loan in two installments. In which 50 percent of the approved loan amount has to be distributed in the first installment.
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