The Industrial Enterprise Development Institute (IEDI) has announced a call for project proposals for startup enterprise loans, inviting eligible entrepreneurs to apply within 21 days. The announcement follows the approval of the “Startup Enterprise Loan Operation Procedure, 2081” by the Ministry of Industry, Commerce, and Supplies on August 14. This procedure enables startups to access loans of up to Rs 2.5 million at subsidized interest rates.
Entrepreneurs who meet the qualifications outlined in Section 4 of the procedure can submit their proposals using the specified format, which is available on the IEDI website at www.iedi.org.np. The proposals should emphasize innovative knowledge, ideas, skills, and abilities. Only one proposal per entrepreneur is allowed, and applicants must declare that they have not received concessional loans from other agencies; otherwise, they will be ineligible for this startup loan until any existing loans are fully repaid.
A committee of experts will evaluate the proposals based on several criteria, including innovative thinking, technology usage, business presentation, job creation potential, use of indigenous raw materials, infrastructure availability, financial condition, and repayment ability.
The loans, which range from Rs 500,000 to Rs 2.5 million, will be offered at a concessional interest rate of three percent, with a maximum term of five years. Repayment of the principal or interest is required to begin one year after receiving the first installment. The loans will be secured by the enterprise and project as collateral, with one or more banks appointed to disburse the funds. Provisions have also been made to pay loan protection agencies from the allocated loan amount.
Eligible businesses must be registered for no more than 10 years, with an annual turnover not exceeding Rs 150 million in any fiscal year following their establishment. The program is open to private firms, partnership firms, companies, and cooperative organizations registered with the industry registration body. This government initiative aims to support new business ventures, fostering innovation and contributing to the country’s economic growth.