5,250 Entrepreneurs Submit Project Proposals for Startup Venture Loan

In an effort to support and encourage startup entrepreneurs, the Government of Nepal has received project proposals from 5,250 entrepreneurs under the Startup Venture Loan program. This initiative is aimed at providing financial assistance to new business ventures and fostering the development of innovative projects.

Number of Project Proposals:

• A total of 5,250 entrepreneurs have submitted project proposals in response to a call from the Industrial Enterprise Development Institute.

• Entrepreneurs were able to submit their proposals both online and at the Institute’s office.

Eligibility for Startup Loans:

• The loans are available to businesses that have been registered for less than 10 years, with an annual turnover of less than NPR 150 million, and to those launching new ventures.

• Only private firms, partnership firms, companies, or cooperative organizations are eligible to receive loans.

Interest Rate and Loan Tenure:

• Selected startups will receive loans ranging from NPR 500,000 to NPR 2.5 million at an interest rate of 3%.

• The loan tenure will be a maximum of five years, with repayments beginning one year after the first installment is received.

Loan Disbursement Process:

• Approved businesses or projects must be secured as collateral.

• Entrepreneurs are required to open a separate bank account for the loan amount and return the unused funds to the Federal Consolidated Fund.

• A loan protection agreement has been signed between the Industrial Enterprise Development Institute and the Deposit and Credit Guarantee Fund.

Other Provisions:

• Entrepreneurs are allowed to submit only one project proposal.

• A self-declaration is required, confirming that the entrepreneur has not taken concessional loans from any other institution.

The Startup Venture Loan program has attracted significant interest from entrepreneurs, offering crucial financial support to innovative projects. This initiative is expected to contribute to Nepal's economic development by fostering new businesses.