Govt to Disburse Startup Loans to 500 Projects in Current Fiscal Year

The government aims to provide startup enterprise loans to more than 500 startup projects in the current fiscal year (FY 2024/25). The government has allocated a budget of Rs 1 billion in the current year for this purpose. The Industrial Enterprise Development Institute (IEDI) published a notice on August 27 inviting applications for startup loans for the current year.

The IEDI and Rastriya Banijya Bank (RBB) signed an agreement for this year’s loan program on September 2.

RBB’s Chief Executive Officer Devendra Raman Khanal and the IEDI Executive Director Gupta signed the agreement on behalf of their respective organisations on Monday. Industry, Commerce, and Supply Minister Damodar Bhandari, Industry Secretary Krishna Bahadur Raut, Commerce Secretary Madhusudan Burlakoti, the Head of the Ministry's Division, the Director General of the Department, and other officials were present at the signing event. 

RBB has been tasked with providing these government-backed loans. Umesh Kumar Gupta, the executive director of the IEDI, informed that more than 100 startup entrepreneurs applied for loans within 5 days after the notification was issued on August 27.

The Startup Enterprise Loan Program Operation Procedure-2080 was approved by the government on August 14. Following the approval, the IEDI issued a notice on August 27 inviting applications for startup loans. Gupta informed that applications can be submitted both online and in person at the IEDI. Twenty-five percent of the budget out of Rs 1 billion has been allocated for the Deposit and Loan Guarantee Fund for security. Additionally, Rs 720 million will be provided to entrepreneurs, with plans to give loans to 500 to 600 people. Last year, the IEDI provided such loans to 163 people. Although the government had allocated Rs 250 million in that year, the IEDI disbursed only Rs 220 million.  

The procedure specifies that the IEDI will implement the loan disbursement program.

In a program held at the ministry, Industry, Commerce, and Supplies Minister Damodar Bhandari stated that this program will increase production in the country and help reduce imports. He also mentioned that it will create jobs and instructed that the startup loan program, which is a high priority of the government, be operated fairly and transparently.