Kathmandu: The Nepal Government has issued a call for project proposals from aspiring entrepreneurs seeking loans under the Startup Enterprise Loan Operating Procedure, 2081. The notice, published on August 25, 2024, invites qualified entrepreneurs with innovative ideas, skills, and capabilities to submit their proposals within 21 days of the notice’s publication.

As per the guidelines, the loan repayment period should not exceed five years, and entrepreneurs are required to start repaying the principal and interest by the second year after receiving the loan. This requirement must be explicitly mentioned in the loan agreement. Additionally, the agreement can be facilitated through the bank’s branch offices, making the process more accessible for entrepreneurs across different regions.

Banks are required to inform the institution about the agreement made with the entrepreneur within seven days of signing. Furthermore, once the agreement is finalized, the concerned bank must disburse the first installment of the loan within seven working days.

The interest rate for loans provided under this procedure has been set at three percent per annum. The loan amount will be disbursed in installments based on the size of the loan—one installment for loans up to NPR 500,000, two installments for loans up to NPR 1,500,000, and three installments for loans up to NPR 2,500,000. Additional installments will be provided based on the progress of the startup enterprise, as verified by the bank.

In addition to the above requirements, banks and financial institutions must ensure that the business or project is insured when disbursing the loan. This ensures added security and protection for both the entrepreneur and the financial institution.

Interested entrepreneurs are encouraged to submit their project proposals online. The format for the project proposal and detailed information can be accessed on the institution’s official website: www.iedi.org.np.