KATHMANDU: The government has allocated Rs 25 million in the budget for the current fiscal year 2080/81 to support startup entrepreneurs. However, the total investment requested by startup projects seeking loans exceeds the government's budget allocation.

To assist aspiring startup entrepreneurs, the government introduced a plan to provide loans at a 3 percent interest rate with project mortgages. According to the plan, the estimated investment for 335 selected projects is Rs 36 million. Umesh Kumar Gupta, Executive Director of the Industrial Enterprise Development Institute, confirmed that the investment projects have been selected for the loans. The IEDI invited interested startup entrepreneurs to submit projects by February 2. Within 21 days, 1,658 projects were registered for loans.

Although the number of proposals was significant, only a few projects were shortlisted for loans. Initially, 394 projects were selected. The IEDI arranged for these shortlisted entrepreneurs to present their business plans from May 3 to 16. Out of them, 335 entrepreneurs presented their business plans.

Gupta stated that the IEDI has forwarded these plans to the Rastriya Banijya Bank for credit appraisal. During this process, the bank evaluates the startup's current business state, its ability to repay the loan, and other financial conditions.

Entrepreneurs who scored more than 50 points in various categories during the presentation will receive loans from the Rastriya Banijya Bank. Gupta mentioned that the final list of approved projects would be completed in 2-3 days, after which it will be submitted to the bank for loan recommendations. He also noted that the loans would be disbursed from the Rastriya Banijya Bank's branch offices in the respective districts, making it more convenient for the beneficiaries. The loans are expected to be disbursed starting mid-June.

Current data indicates that about 220 projects have scored more than 50 points. Gupta emphasized that the total budget for this program is Rs 25 million. A list of entrepreneurs will be prepared within this budget, and loans will be provided to the projects scoring more than 50 points.

According to Gupta, some projects require loans up to Rs 2.5 million. The government policy allows for concessional loans up to a maximum of Rs 2.5 million per startup enterprise. The disbursement of this amount will be based on the project's needs and demands and will be provided in installments. The second and third installments will be given only after verifying the utilization of the previous installment by visiting the project site.

The government will provide these loans according to the 'Startup Enterprise Loan Operation Procedure-2080' issued on January 25. The IEDI has designated 16 different areas for these loans, and entrepreneurs whose businesses were registered less than 7 years are eligible. Eligible sectors include agriculture and forestry, tourism promotion and entertainment, hospitality, science and technology, information and communication, human health services, education, transportation services, automobiles, renewable energy, climate change mitigation, and more.

Projects for such loans have been submitted from various districts, including Sankhuwasabha, Kathmandu, Bhaktapur, Lalitpur, Kavrepalanchok, Dhading, Chitwan, Nuwakot, Rasuwa, Morang, Sunsari, Kailali, Lamjung, Gorkha, Arghakhanchi, Kaski, Bara, Achham, Dang, Bajura, Baitadi, Jhapa, Banke, Makwanpur, Humla, Darchula, Kalikot, Salyan, Panchthar, Gulmi, Saptari, and Pyuthan.