Start-Up Enterprises Loan Operation Procedure Comes into Effect

The Ministry of Industry, Commerce and Supplies has approved and put into effect the 'Start-Up Enterprises Loan Operation Procedure, 2081'. 

The procedure has made the process to provide concessional loans to entrepreneurs simple, clear and transparent, to encourage many others to be involved in start-up enterprises, according to the ministry.

The ministry approved the procedure on August 14.

The procedure has a provision to provide start-up loans at 3% interest with the  enterprise and project as collateral.

It also has a certain criteria for the start-up business.

Any enterprise registered less than 10 years ago and having an annual turnover less than Rs 150 million in any fiscal year since its establishment would be eligible for concessional loans, according to the procedure.

The enterprises registered as private firm, joint venture, company and cooperative institution in the concerned bodies would also be eligible for concessional loans.  

The government will assign one or more banks to provide the concessional loans, which must be repaid within five years. 

The Industrial Enterprise Development Foundation would implement the start-up loan scheme. 

The entrepreneurs, however, need to insure their enterprise or project.

According to the Procedure, the bank providing start-up concessional loan can impose a maximum 0.1% service charge for the subsidised loan. 

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