Govt Invites Proposals From Eligible ‘Startup’ Entrepreneurs For Soft Loans

Proposals have been sought for the government's ‘startup’ company loans announced for the current fiscal year 2080-81 to encourage innovative entrepreneurs. The Industrial Business Development Foundation has requested a proposal from startup entrepreneurs. The Ministry of Industry, Commerce, and Supply previously approved Startup Enterprise Loan Operation Procedure 2080 on Magh 11.

The procedure cleared the way for the government-provided start-up loan to be utilized in this year's budget. According to the ministry, the government is offering 25 million rupees for startup loans this year. The government is preparing to offer start-up loans of up to Rs 25 lakh at a 3% interest rate. The institute's announcement released on Friday states that such a proposal can be submitted within the next 21 days.

According to the foundation, people who meet the criteria for a startup company, have the most recent information, thinking, skills, and talents in the designated sector, and intend to obtain a startup enterprise loan can submit an application and proposal. According to the procedure, a starting firm can operate in 16 different categories. In other words, startup loans can be obtained in certain places.

Startups can be established in agriculture and livestock, forestry, tourism and entertainment, hospitality, science, technology, information and communication, human health, education, and teaching and learning. Startups will also be acknowledged in the fields of effortless and secure transportation, automobiles, conventional technologies, manufacturing and service delivery, mining and mineral research and development, domestic or daily living, and food production and processing.

Loans can now be taken out for waste management and environmental protection, disaster relief, alternative and renewable energy, and climate change mitigation.

According to the ministry, the government would provide a start-up loan of up to Rs 25 lakh. The entire amount will be disbursed in three installments. The process states that when the bank disburses loans, loans up to 5 lakhs are given in one payment, loans up to 15 lakhs are issued in two installments, and loans over that amount are released in three installments. Startup businessmen that have not surpassed seven years of registration and have met the criteria can apply for such a loan by the application deadline specified by the government .

The Industrial Business Development Foundation will implement the startup enterprise program, while the government-owned commercial bank will manage the startup loan fund. What is the borrower's duty? The funds shall be utilized solely for the purposes mentioned. According to the agreement, the borrower is also liable for repaying the loan principle and interest.

It has been stipulated that startup entrepreneurs who take out loans must provide the necessary information and data during monitoring by regulatory bodies and banks, submit quarterly progress reports on their startup ventures to the lending bank, and follow the instructions given by the establishment, committee, and bank. If the loan isn't reimbursed within the set time frame, the bank might refer it to the appropriate agency for action. If the loan is not repaid, it will be classified a bad loan.

The arrangement specifies what action will be taken, ranging from the confiscation of the entrepreneur's passport to the seizure of movable and immovable properties. The government can even freeze bank accounts and halt social security payments. The entire project will be financed through a mortgage. According to the method, the bank will use the authorized business or project as collateral when disbursing the loan. The entrepreneur must personally get insurance for such a business or project.

Loan protection will be provided through the loan protection fund. The bank will be able to charge a maximum of 0.1 percent of the service fee while disbursing the loan.