Kathmandu. In the current financial year, 966 people will get startup loans. The Industrial Business Development Foundation issued a notification on Tuesday and recommended them for startup loans.
The Industrial Business Development Foundation selected 1,301 projects from the initial list out of 10,244 proposals received under the ‘Startup Enterprise Loan Program’. Out of the 1,298 projects in the list of eligible proponents, only 1,156 of them were selected for presentation. In the presentation, the proponents were evaluated based on the photos, videos, financial statement, presentation, question and answer and other details of the project.
On Thursday, the foundation has also announced the bank branch office that will be available to the entrepreneurs who are on the loan recommendation list. It has also requested to contact the branch office of the bank within three days of publication of the notice. Saghan Dahal, information officer of the institution, said that the process should be started within three days of the branch. Since it is an annual program, the project proposal and recommended funds will be automatically deactivated after the end of June, the foundation said.
Entrepreneurs who are recommended for loans should go to the designated branch of the bank with documents such as business registration and renewal certificate, PAN/VAT registration certificate, tax return for the financial year 2081/82.
The government had earlier sent a letter to the municipalities through the Ministry of Federal Affairs and General Administration asking them to conduct on-site inspection of project proposals under the startup enterprise loan program. During the process of evaluation of proposals received for startup loans, it was said that it was necessary to check the physical condition of the related project. After checking the physical condition, the foundation published the preliminary list.
The institution had issued a 21-day notice on November 19 and called for project proposals for startup enterprise loans. Project proposals of 10 thousand 244 entrepreneurs have come in it. 2 thousand 41 entrepreneurs registered project proposals at the institution. 8,203 people registered their proposal online.
The government has allocated a budget of Rs 73 crore for the current financial year to provide start-up loans. However, Dahal said that by transferring the money under the title that is not spent on the establishment itself, the amount distributed for the startup loan will be 1 billion 10 million rupees.
This is the third time that the institution is going to provide start-up enterprise loans. During the disbursement of loans in two financial years, some project proponents were found to have brought fake videos, and this time they were asked to conduct an on-site inspection.
For start-up loans for entrepreneurs who are registered with the relevant industry registration body as a private firm, partnership firm, company or cooperative organization, have the potential for high growth through transformation into an enterprise business using innovative and creative thinking and technology in the production of goods or services, have adopted technology, have not exceeded 10 years since the enterprise business was registered, have an annual turnover of no more than Rs. are eligible.
Loans will be given in areas related to agriculture and livestock, forestry, tourism promotion and entertainment and hospitality, science, technology, information and communication, human health services, education and teaching learning, automobiles, traditional technology, improvement of production and service delivery processes, household or daily living, food production and processing, easy and safe transportation and transportation services, mining and mineral research and development.
Earlier, the foundation was disbursing loans to entrepreneurs from a minimum of 5 lakh to a maximum of 25 lakh rupees. But this year, it has said that loans will be distributed from a minimum of 5 lakh to a maximum of 20 lakh rupees.
Earlier, among the proposals that received more than 50 percent of the points obtained after the presentation of the selected projects and the credit appraisal from the bank, the proposal that received the highest number of points was prioritized and recommended for loans.
The evaluation committee formed by the foundation has been evaluating the proposal’s business photos, videos, financial statements and other details presentation and also based on the questions and answers of the evaluation committee. But since the proposals for annual loans have started to increase, this time on-site testing has also been started.
The total score will be calculated by adding the average score of the evaluation committee of the proposer and the score obtained after credit appraisal from the bank. The evaluation committee should prioritize the proposal with the highest score among the proposals that score at least 50 percent and submit the loan recommendation list to the executive director of the institution for approval.
In the last fiscal year 2081/82, the government allocated 1 billion rupees for startup loans but disbursed 886.66 million 25 thousand rupees. Up to 3 percent of the allocated budget was spent on the administrative expenses of the institution, while 25 percent was kept in the deposit and loan protection fund for loan protection (insurance).
In the last financial year, the foundation provided startup loans worth Rs 8866625000 to 600 people. The institution called for project proposals on 11 August 2081 for disbursement of loans. At that time, 5 thousand 158 entrepreneurs were present online and physically and registered their proposals. In the financial year 2080/81, the foundation provided loans of 21 crore rupees to 165 entrepreneurs.