April 17: After the Department of Industry called for proposals from eligible companies seeking start-up loans, more than half a dozen questions have been asked several times in connection with the loan procedure.

One of the frequently raised question is – why are the companies registered under PAN ineligible to receive the start-up loan.

The department said those submitting proposals asking a wide range of questions such as whether the interest rate will increase later or not.

The department has responded by publishing the answers to the frequently asked questions (FAQs) on its official website doind.gov.np. The department had issued a notice on March 30 and called for proposals within 21 days to take such loans.

While proposing for start-up loan projects, questions have been asked such as why a single shareholder cannot propose for a start-up loan and why the companies registered with the permanent account number (PAN), ward or a local body cannot propose for such a loan.

Similarly, the other FAQ include whether or not such loan can be given to an organization which has added shareholders after amendment, whether they will get this loan if they have already taken a loan from another bank, how many installments the loan has to be paid (annually or monthly), will the interest rate increase from 3 percent later and how many people will get a start-up loan? The department mentioned that such questions were asked during the project proposal.

The department has tried to dispel the doubts by giving clear answers to the questions raised in the proposals repeatedly.

The department clarified that a single shareholder cannot be offered the start-up loan as it is targeted at a group of entrepreneurs with the latest thinking, knowledge, skills and abilities. Similarly, partnership firms and companies can submit proposals for such loans as there is a provision in the 'Start-up Business Loan Disbursement Procedure 2079' that only such companies are considered eligible for loans.

Similarly, on the question of whether to give loans to those who have added shareholders after amendment, the department said that the organisations that did so before they issued the notice on March 30 can avail such loan but those who amended their statute after the notice was released will not get this loan.

Similarly, the department has mentioned that women are also among the target group of start-up enterprise loans.

Similarly, in relation to the question of how many installments the loan should be paid (annually or monthly), the department said it will be according to the rules of the bank providing the loan. The department further said that the interest rate of the loan will be limited to 3 percent as such loans will flow for a maximum period of 7 years.

The department called for submission of proposals on March 30 after the procedure was approved on March 24.

The procedure covers loans for 14 different sectors related to agriculture, tourism, infrastructure, mining and minerals, automobiles and garbage and waste management and environment which fall under start-up enterprises.