Concessional Loan Scheme for Startup Entrepreneurs Implemented by the Government under the 2081 Directive

The government has implemented the "Startup Enterprise Loan Operation Procedure 2081" to facilitate concessional loans for innovative entrepreneurs. This directive was approved by the Ministry of Industry, Commerce, and Supplies on Shrawan 30.

Key Highlights:

Interest Rate for Loans:

• Loans for startups will be provided at an annual interest rate of 3%.

Eligibility Criteria for Loans:

• The business must not be older than 10 years.

• It must be registered as a private company, partnership firm, or cooperative.

• The annual turnover should not exceed NPR 150 million.

Eligible Sectors for Loans:

• Agriculture, irrigation, livestock, production-based enterprises, forest products, tourism, science, technology, human health, education, transportation, infrastructure development, electric vehicles, waste management, and other similar enterprises.

Loan Disbursement Process:

• Entrepreneurs can submit their proposals within 21 days.

• The maximum loan tenure is 5 years.

• The first installment of the loan will be available within 7 days, with subsequent installments based on progress.

Loan Recovery:

• The loan principal and interest must be repaid after 1 year; failure to do so will result in classification as a non-performing loan.

• Movable and immovable assets of defaulters may be seized.

Implementation Responsibility:

• The Industrial Enterprise Development Institute will be responsible for implementing the program, while banks will manage loan disbursements.

This directive aims to encourage innovative ideas and capabilities by providing concessional loans to startup entrepreneurs.