The government is rolling out a new initiative designed to support startups through the provision of loans. On January 25, the Startup Enterprise Credit Working Procedure 2024 received approval from the Ministry of Industry, Commerce, and Supply. Industry Minister Ramesh Rijal endorsed the procedure, greenlighting the utilization of the government’s allocated startup loan for the current fiscal year.
According to Shekhar Babu Karki, Assistant Spokesperson of the Ministry, a sum of Rs 250 million has been earmarked for startup loans this year. The government has outlined a provision to extend startup loans of up to Rs 2.5 million at a 3 percent interest rate.
The next step involves presenting the procedure to the House of Representatives.
Sectors Eligible For The Startup Loan
Here is the list of the businesses that will be eligible to apply for the startup loan program.
- Agriculture and Livestock
- Forestry
- Tourism Promotion and Entertainment
- Hospitality
- Science, Technology, Information Technology, and Communication
- Health
- Education
- Easy and Safe Transportation
- Automobiles
- Traditional Technology
- Production and Service Delivery
- Mining and Mineral Research and Development
- Household or Daily Living
- Food Production and Processing
- Waste Management and Environment Protection
- Disaster Management
- Alternative and Renewable Energy
- Climate Change Mitigation
The Ministry has specified that the government will disburse a startup loan of up to Rs 2.5 million in three installments.
As per the startup procedure, loans up to Rs 500,000 will be disbursed in the first installment, up to Rs 1.5 million in the second installment, and amounts exceeding that will be distributed in the third installment.
Eligible applicants for this loan are startup entrepreneurs with registration periods not exceeding seven years, provided they meet the government’s criteria within the stipulated timeframe.
Frequently Asked Questions on Startup Loan Nepal
1. What is the purpose of the Startup Enterprise Credit Working Procedure 2024?
The Startup Enterprise Credit Working Procedure 2024 is designed by the government to support startups through the provision of loans. The aim is to foster entrepreneurship by offering financial assistance to eligible startups in various sectors.
2. How much funding has the government allocated for startup loans this year?
The government has allocated Rs 250 million for startup loans in the current fiscal year. This fund is intended to facilitate the growth and development of startups across different industries.
3. What are the interest rates for the startup loans provided by the government?
The government is offering startup loans of up to Rs 2.5 million with a 3 percent interest rate. This competitive interest rate is designed to make the loans accessible and affordable for qualifying startups.
4. What sectors are eligible to apply for startup loans under the procedure?
Startups operating in various sectors are eligible to apply for the startup loans. The specified sectors include Agriculture and Livestock, Forestry, Tourism Promotion and Entertainment, Hospitality, Science, Technology, Information Technology and Communication, Health, Education, and many more, as outlined in the Startup Enterprise Credit Working Procedure 2024.
5. How will the startup loans be disbursed, and what are the eligibility criteria for applicants?
The startup loans will be disbursed in three installments, with the first installment for loans up to Rs 500,000, the second installment for loans up to Rs 1.5 million, and the third installment for amounts exceeding that. Eligible applicants are startup entrepreneurs with registrations not surpassing seven years, provided they meet the criteria established by the government within the stipulated timeframe.
