Kathmandu, Oct 12: The government has introduced the Startup Loan Program to turn innovative ideas into business ventures. Under the guidelines prepared by the Ministry of Industry, Commerce and Supplies, entrepreneurs can receive loans at 3 percent annual interest, with amounts ranging from 500,000 to 2 million.

The Industrial Enterprise Development Institute previously provided up to 2.5 million, and there is lobbying to maintain this limit. Applications are expected to open next week, with some minor revisions still being made to the guidelines, according to the institute’s executive director Umesh Kumar Gupta.

This year, loan proposals have been delayed due to the Gen Z movement, and an online system for submitting applications is almost ready. The government has allocated a budget of 730 million for startup loans, which can be adjusted as needed. Last year, one billion was allocated, and 886.6 million was disbursed to 600 entrepreneurs out of 5,158 proposals covering agriculture, hostels, domestic industries, and IT projects.

Eligible sectors include agriculture, irrigation, livestock, forest-based products, mining and research, food technology, and nutrition.

The information technology and digital sector is also covered, including innovations in communication, household technology, waste management, public service delivery, and process improvements. Infrastructure and transport ventures, social services, tourism, and businesses using traditional or local resources are also eligible.

To qualify, applicants must be registered as private firms, partnerships, companies, or cooperatives. Ventures must demonstrate innovative use of technology, be under ten years old, and have annual revenue below 15 million after registration. Applicants cannot have previously received similar loans, and false claims may lead to cancellation.

Loan applications are evaluated based on presentations of business plans, either in person or electronically. Approved projects are ranked and recommended to banks for credit approval. Loans up to 5 million are provided in installments: one installment for five million or below, two for 15 million, and three for higher amounts.

Loan repayment starts one year after receiving the first installment, with interest, and banks must release the first installment within seven working days of agreement. Banks are required to report disbursed loans to the institute within seven days, and provide written reasons if loans cannot be provided.

People’s News Monitoring Service