'Start-Up Enterprises Loan Operation Procedure' in effect

Kathmandu, Aug 17: The Ministry of Industry, Commerce and Supply has approved 'Start-Up Enterprises Loan Operation Procedure, 2081' and brought it into effect. 

Sharing the activities to provide concessional loan would be made simple, clear and transparent encouraging the entrepreneurs with latest knowledge, thoughts, skill and capacity to involve them in start-up enterprises, the ministry had approved the procedure on August 14.

As per the procedure, start-up loan can be obtained at three per cent interest considering enterprises and project as collateral.  

The procedure has set certain criteria for the start-up business. The enterprise would be able to get concessional loan if it was not registered before 10 years, while the annual turnover of the enterprise should not exceed more than Rs 150 million in any fiscal year since its establishment. 

The enterprises registered as private firm, joint venture, company and cooperative institution in the concerned bodies would also be entitled to concessional loan.  

One or more than one banks would be assigned to provide the concessional loan and its installment should be deposited in the bank opening a separate bank account.

Industrial Enterprise Development Foundation would implement the start-up loan scheme. The time period of such loan would be of maximum five years. 

However, entrepreneurs should themselves make insurance of the enterprise or project. According to the Procedure, the bank providing start-up concessional loan can impose maximum 0.1 per cent service charge for the subsidized loan. (RSS)