Government Announced to new venture at 2 percent interest Loan up to 5 Million

Kathmandu. The government has made an arrangement for the inventors, entrepreneurs or entrepreneurs with the latest knowledge, skills and abilities to take loans up to Rs 5 million at an interest rate of two percent for running innovative enterprises and businesses. The government has issued ‘Innovative Start-up Capital Loan Flow Procedure, 2077’ to provide start-up capital to such innovators as an incentive in enterprise business.

There will be a steering committee with a member coordinator appointed by the Vice-Chairman of the National Planning Commission to manage the work related to the flow of credit as per the working procedure approved by the cabinet meeting.

The committee will call for proposals to provide loans to small, home, small and medium enterprises, entrepreneurs or inventors who have not been able to raise the required investment capital in the fields of industry, agriculture, energy, health, tourism, education, information technology and others.

Similarly, the committee will prepare criteria for selection of proposals, limit of loan amount, installment, number of proposals to be selected for loan, and monitor whether the borrower, inventor, entrepreneur or entrepreneur has used such loan properly.

According to the procedure, the inventor, entrepreneur or entrepreneur who wants to get a loan should mention in the proposal the innovative invention, venture or business, its risk, possible return, required amount, loan amount expected from the government and its impact on the socio-economic sector.

For the selection of proposals, there will be a proposal evaluation sub-committee with a member coordinator from the Ministry of Industry, Commerce and Supplies.

The amount allocated to the Ministry of Industry, Commerce and Supply by the government for providing innovative start-up capital to the selected proposing inventors, entrepreneurs or entrepreneurs will be provided as loan at the interest rate of two percent through the commercial bank specified by the committee.

The working procedure also stipulates that a maximum amount of Rs. 5 million will be provided as new innovative starting capital so as not to exceed 50 percent of the total cost on the basis of the proposed cost and its impact.

While approving the loan, the bank will be able to take the guarantee of the inventor, entrepreneur or businessman, business action plan, agreement and project as loan collateral.

The procedure stipulates that the repayment period of Saba payments will start within one year of receiving the last installment of the loan and the entire installment and interest of the loan will have to be repaid within four years of the commencement of repayment period of Saba repayment.