Kathmandu. Now you can put the 'idea' in us as a mortgage. If you have a new idea, you can take a loan of up to 25 lakh rupees from the bank by putting that idea as collateral in the bank. The government had allocated 25 million rupees in the current financial year for such loans. In the initial phase, the budget was allocated to cover 100 startups across the country.

With the Ministry of Industry, Commerce and Supply approving the Startup Enterprise Loan Fund Procedure 2079 and implementing it, for the first time in Nepal, the way for startups to get loans at subsidized interest and without collateral has been opened. The government has arranged that only 14 different types of industries can get loans at subsidized interest rates without collateral. In the procedure, the idea itself is taken as collateral.

Within the next few days, the government will include the enterprises based on science and technology, communication and information technology related to agriculture and livestock, forestry, tourism promotion and entertainment and hospitality in the loan facility.

Similarly, related to human health services, education and teaching learning, easy and safe transportation and transit services, infrastructure construction, automobiles, traditional technology, production and service delivery, mining and mineral research, household or daily living, food production and processing and waste management. And environment-related businesses will be included in the loan criteria of startups.

According to the ministry, the entrepreneur will be provided with a loan for the business proposal (project proposal) at a base rate of 3 percent interest rate for 7 years.

Startup enterprises will receive loans for 7 years through government-funded commercial banks. In such a loan, the principal payment can be made only after three years.

Likewise, entrepreneurs willing to take loans will be given 21 days time to submit their project proposals and public notices will be published in national newspapers and electronic media. According to the notification, an entrepreneur will not be allowed to submit more than one proposal.

Nepal Rastra Bank will select banks and financial institutions to provide loans of 25 lakh rupees to start-up entrepreneurs. The Central Bank will recommend for disbursement of loans through commercial banks wholly or mostly owned by the Government of Nepal.

Based on the recommendations made by the selection committee, the central bank will appoint a bank to disburse the loan in two installments. In which 50 percent of the approved loan amount has to be distributed in the first installment.