First Business News Portal in English from Nepal
KATHMANDU: The National Planning Commission(NPC) has provided an additional three months for all new entrepreneurs to submit their proposals for subsidized loans of up to 50 percent of their total capital investment.
With this, the new entrepreneurs can now apply for the loan by October 16, effective from mid-July.
Earlier on May 11, NPC had made a call for start-ups to apply for the grant worth Rs 500,000. The announcement was based on the budget of the last fiscal year and such start-ups will also be provided loans at a subsidized interest rate according to the new budget for fiscal 2020/21.
Prior to the new budget being announced, the planning commission had received 699 applications from new entrepreneurs who wanted to invest in sales of either goods or services. Since the grant service was announced based on the budget of last fiscal year,the process for awarding the grant was made accordingly.
As per Kishor Joshi, joint secretary at NPC,the lockdown interrupted the second phase of the process to grant the award.
Meanwhile, the new budget also mentioned that entrepreneurs will get subsidized loans through the same grant due to which an amendment was necessary to the earlier work procedure. “Now, we are in the process of amending the previous work procedure by including some suggestions from the Finance Ministry, Ministry of Industry, Commerce and Supplies and the Ministry of Law, Justice and Parliamentary Affairs,” said Joshi.
“We will be submitting the draft to Cabinet, therefore, it will take some time. So, we have extended the deadline from mid-July to mid-October for new entrepreneurs to submit their proposals for the loan in this intervening period,”he added.
He mentioned that entrepreneurs can make a loan proposal of up to Rs 10 million whereby they will receive up to 50 percent of their total investment. Joshi said that a total of Rs 500 million has been allocated for the loan project.
Entrepreneurs investing with capital worth Rs 500,000 to Rs five million can apply for the loan.
The proposals received for the loan will be chosen by the selection committee on the basis of 13 different parameters, including start-ups that save time and cost, reduce price, increase quality, use creativity, utilize sophisticated traditional knowledge, increase public interest, and ensure quality goods or services, among others.
The government introduced the project with an objective to promote entrepreneurship and start-ups in the country.
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