Startups to get subsidized loans of up to Rs 2.5 million

KATHMANDU: The Department of Industry (DoI) has invited project proposals for startup enterprise loans. The DoI has invited individuals with innovative ideas, skills, and abilities to submit their loan applications along with business proposals within 21 days.

The government recently issued the ‘Startup Enterprise Loan Fund Procedure, 2023 to support this initiative. Under this scheme, the government will provide loans of up to Rs 2.5 million at a nominal interest rate of 3%. No collateral is required to avail of this loan, and startup entrepreneurs can use the funds for up to seven years, according to the procedure.

The DoI has specifically invited proposals from businesses in various sectors such as agriculture and livestock, forestry, tourism, science and technology, health, education, transportation, and minerals.

To be eligible for this subsidized loan scheme, the business must have been registered and operational before March 30, and it must not have completed seven years of operation. Similarly, the capital of such business should not exceed Rs 5 million, while the annual total revenue should not exceed Rs 50 million. Additionally, the fixed capital should not be more than Rs 20 million.