Do you want to take a loan of up to 25 lakhs by mortgaging your project? Apply like this
Kathmandu. With the Ministry of Industry, Commerce and Supply approving the Startup Enterprise Loan Operation Procedure, 2080, project proposals for startup enterprise loans have been invited. Through a notification on Friday, the Industrial Business Development Foundation has invited entrepreneurs who are willing to take loans by meeting the standards of startup enterprises to submit project proposals.
The notification states that startup entrepreneurs with latest knowledge, thinking, skills and abilities should submit project proposals within the next 21 days. The central government allocated 25 million rupees for this program through the budget of the current financial year 2080/81.
Only three percent annual interest will be charged on loans provided through the National Commercial Bank. Startups receiving loans must use the loan amount according to the purpose. In addition, there will be conditions in the agreement such as repayment of loan principal and interest amount, provision of necessary information and data during monitoring by the regulatory body or the bank, and also conditions that the startup receiving the loan will have to follow.
Not only this, the startup enterprise's progress report must be submitted to the lending bank on a quarterly basis, and the duty of following the instructions given by the foundation, committee and the bank must also be fulfilled. The bank will provide loans up to 5 lakhs in one installment, loans up to 15 lakhs in two installments and more than 25 lakhs in three installments.
While disbursing loans in this way, startups will have to get business or project insurance. The term of such a loan will be for a maximum of five years and the repayment of principal and interest will have to start from the second year. In case of non-payment of the loan received in this way, the bank can recommend to the relevant body for action.
What startups can submit projects?
The procedure has defined as a start-up enterprise that there is a possibility of upgrading the production or operation or distribution process of a product or service by using new technology and creative thinking. According to the law, startups that have been registered for less than seven years will be eligible for such loans.
Similarly, startups with total paid-up capital ranging from two lakh rupees to ten lakh rupees, annual turnover not exceeding two crore rupees and fixed capital (excluding the value of real estate) not exceeding two crore rupees can participate in this program.
Enterprises that are not registered, import and distribute goods and services from abroad and are registered as holding and investment companies according to the Industrial Business Act 2076 are not allowed to participate in this.
The procedure has included enterprises from 16 different sectors within the startup enterprise. Accordingly, startups in the following sectors can submit projects for loans:
-Agriculture and animals.
– Tourism promotion and entertainment and hospitality.
-Science, technology, information and communication.
-Human health services.
– Education and teaching learning.
– Easy and safe transportation and transportation services.
-Improving the process of traditional technology, production and service delivery.
-Mining and mineral research and development.
– Household or daily living.
– Food production and processing.
– Garbage management and environmental protection.
– Disaster management.
-Alternative and renewable energy.
– Climate change mitigation.
Startups in these sectors should attach a copy of the registration/renewal certificate of the industry, a copy of the permanent account number certificate, a copy of the audit report of the previous financial year and a copy of the tax payment certificate while submitting the proposal.
Similarly, it is mentioned in the notification that a copy of the citizenship certificate of the official representative of the firm/company or industry, details of full-time workers and evidence of IT usage and innovation should also be attached.
Also, it is said that the hard copy should be submitted to the office of the Project Proposal Foundation, Tripureshwar, Kathmandu during the office hours.
This is how the loan will be distributed
The startups who want to take loan have to submit their project proposal in the format given in schedule-1 of the procedure. A self-declaration must also be made that the details mentioned in the proposal and the attached documents are correct. After evaluating the proposals received in this way, the institution will recommend for loans.
For this, it is mentioned that the market possibility of selling goods or services produced by the project, the source of raw materials used, the availability of necessary infrastructure, the measures adopted for risk management, the presentation of business proposal and credit appraisal will be used as the basis.
The foundation will form an evaluation committee that includes experts who have worked in the field of startups and entrepreneurship, as well as banks providing loans. Who will evaluate the proposals and prepare a list of eligible proposals. After that, the listed bidders will be asked to present a commercial proposal and the startup will be selected for the loan.
Last updated: Jan 19, 2080 14:36
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