KATHMANDU: The government has selected a total of 183 startup enterprises to provide loans of Rs 194 million at subsidized interest rate for business expansion. The Industrial Enterprise Development Institute (IEDI) has published the list of recommended projects and proponents for these projects entitled to receive the subsidized interest loans.

The IEDI is an autonomous body established by the government which is tasked with developing human and knowledge resources for entrepreneurship and business promotion in Nepal through a number of impact-generating quality tools such as training, research, consultancy, enterprise education, and management development programmes.

The government had initially announced a policy to provide capital to entrepreneurs with innovative ideas but lacking investment sources in the budget for the fiscal year 2071/72. Despite this annual announcement, the policy was implemented only after a decade. According to the government's plan, selected startup entrepreneurs will receive loans at a subsidized interest rate of 3 percent per annum.

The IEDI requested for project proposals from interested startup entrepreneurs on February 2. A total of 1,658 projects were registered for loans within the deadline of 21 days. Among them, the IEDI shortlisted 335 projects with a total proposed investment of Rs 360 million. Out of the 335 shortlisted entrepreneurs, 183 have been finalized to receive loans.

The government’s policy entitles the selected startup projects to receive loans ranging from a minimum of Rs 500,000 to a maximum of Rs 2.5 million at an interest rate of 3 percent per annum.

Executive Director of the IEDI, Umesh Kumar Gupta, stated that the government will invest this amount in the selected projects. This year, the government has allocated Rs 250 million to support such projects.

"Most of the selected projects will receive between Rs 1.5 million and Rs 1.7 million," Gupta said, adding, "Only 4 or 5 projects will receive Rs 2.5 million each."

The number of projects receiving the minimum Rs 500,000 is also few. The loans will be disbursed within the current year.

The government has made an arrangement for the startup projects to avail the loans from the nearest branch of Rastriya Banijya Bank.

On Monday, the foundation announced the names of the projects entitled to receive the loans and their corresponding bank branches to clarify where each loan will be processed. According to Gupta, loans can be obtained from 183 branches of the Rastriya Banijya Bank across different districts.

The government issued the 'Startup Enterprise Loan Operation Procedure 2080' on January 25. Eligible projects must have been registered for less than 7 years, with a total paid-up capital between Rs 200,000 and Rs 1 million, an annual turnover not exceeding Rs 20 million, and fixed capital (excluding real estate) also not exceeding Rs 20 million.