Procedure for giving loan to startup in the Council of Ministers

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Procedure for giving loan to startup in the Council of Ministers

In order to encourage those involved in startup business, a procedure has been prepared for the disbursement of loan by the government as initial seed capital at 1 percent interest rate.

A working group formed under the coordination of the officials of the Ministry of Finance has already prepared the working procedure and is preparing to present the working procedure in the cabinet meeting in a few days.

This program has been in the budget for a long time. However, it could not be implemented.

In the budget brought by the ordinance for the fiscal year 2078/79, Bishnu Poudel had announced to give loan at 1 percent interest rate under this program.

In order to motivate young entrepreneurs to get involved in startup business, the project has pledged Rs. Up to Rs 2.5 million seed capital loan will be provided, ‘it was said in the budget.

The implementation of this program, which has been kept in the budget for a long time, was hampered due to lack of clear definition, procedures and criteria.

The drafting of the current procedure seeks to define ‘startup’. Young entrepreneurs with the latest knowledge, thinking, skills and abilities are called ‘innovative’. However, this definition does not seem to fully define startups.

Joint Secretary at the Ministry of Finance Mahesh Acharya has informed the campaign that the draft has been finalized so that the director / executive committee can clarify the definition.

Although the draft was prepared by a task force comprising officials from the Ministry of Finance, it has not been made public yet.

In the draft prepared by the task force, it is mentioned that the project should be proposed to get a concessional loan at 1 percent interest rate, especially as seed capital. The government will issue a notice calling for proposals.

The project proposal specifies the areas of enterprise that can be operated as a startup business. Under this, the government has kept the sectors related to agriculture and livestock based to the improvement of traditional technology or production process as enterprise sector.

Forests (herbs) based on forest products, tourism promotion and entertainment and hospitality, alternative energy production and distribution, science, information technology and communication based enterprises can get any kind of loan. This news is in the economic campaign daily.

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Rabins Sharma Lamichhane

Rabins Sharma Lamichhane is the owner of RabinsXP who is constantly working for increasing the Internet of Things (IoT) in Nepal. He also builds android apps and crafts beautiful websites. He is also working with various social services. The main aim of Lamichhane is to digitally empower the citizens of Nepal and make the world spiritually sound better both in terms of technology and personal development. Rabins is also the first initiator of Digital Nepal.

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