Govt approves start-up enterprises Credit Operation Work Procedure 2023

KATHMANDU: The government has given the green light to the Start-up Enterprises Credit Operation Work Procedure 2023, aligning with provisions outlined in the current fiscal year’s budget. This move aims to support start-up enterprises by disbursing loans at an interest rate of three percent.

For the fiscal year 2023/24, the government has earmarked Rs. 250 million to incentivize individuals with innovative knowledge, skills, and abilities to venture into start-up enterprises. Rastriya Banijya Bank has been chosen as the partner to mobilize this allocated fund.

The Ministry of Industry, Commerce, and Supplies revealed that a Memorandum of Understanding has been signed, appointing Rastriya Banijya Bank to oversee all loan appraisal, disbursement, and recovery processes for eligible entrepreneurs.

As per the approved procedure, proposals were solicited by the Industrial Enterprise Development Institute (IEDI) starting from February 2. A total of 1,658 project proposals were received by February 22.

The IEDI has compiled a preliminary list of projects meeting the specified criteria and invited them for presentations on scheduled dates. Projects unable to present within the specified timeframe are automatically excluded from the selection process.

The presented projects will undergo credit appraisal by the bank, with loans recommended only for those scoring more than 50 points. Recommended entrepreneurs must sign agreements with the bank and adhere to repayment schedules as per bank regulations.

The procedure outlines specific criteria for enterprises to qualify for start-up enterprise loans. The IEDI, with support from the Nepal government and experts, has prepared the initial list of projects received based on these criteria.