It takes courage to start a business, but it takes even more courage to keep going when faced with financial obstacles. In the beginning stages of your business, you may have sought out family, friends, and even banks for financial support, only to be met with rejection and skepticism. It can be frustrating, disheartening and demotivating when the people you trust most are unwilling to invest in your vision.
But what if I told you that there is a way to secure the funding you need without relying on anyone else? That's right - the Department of Industry has just announced a game-changing initiative that will provide start-ups with loans of up to 25 lakh rupees! This means that you no longer have to feel discouraged by the lack of support from traditional lenders. With this government-backed loan, you can finally turn your business idea into a reality.
By doing this the Nepalese government has taken a major stride towards revolutionizing the start-up culture in the country. For any entrepreneur, the government's support is a much-needed lifeline, providing a pathway to success and enabling businesses to grow and thrive in a way that was previously quite difficult. By enabling innovators to bring their ideas to fruition, the government is setting the stage for job creation, economic growth, and increased prosperity.
If you're an aspiring entrepreneur in Nepal, it's natural to be curious about the details surrounding this new start-up loan initiative. You may be wondering how to access the loan, whether it's available to everyone, and what criteria need to be met to be eligible. Well, you're in luck - we're here to answer all of your burning questions!
This exciting new initiative will open up lending opportunities for a wide range of sectors, including science, technology, agriculture, forestry, tourism, and more.
Imagine being able to get funding for your groundbreaking new technology that will revolutionize livestock production or use communication and information technology to promote tourism and entertainment. The possibilities are endless!
But it's not just about high-tech innovations - the government is also committed to supporting startups in areas like healthcare, education, waste management, and environmental sustainability. From improving daily living to protecting the planet, the loan criteria cover a wide range of areas that can benefit from funding.
Did you know that if you're running a business for less than 7 years, you may be eligible for a start-up loan? But wait, there are certain criteria you need to meet! You could be eligible for a start-up loan if your business is less than 7 years old. However, there are criteria you need to meet such as not exceeding 5 million rupees in paid-up capital and total income, and having less than 10 full-time employees. You also need to use information technology and creative thinking to solve problems, and spend 5% of your expenditure on development. Lastly, your intellectual property must have a patent, design, or software registered. Remember, meeting at least five of the 7 criteria is required to be eligible for the loan.
So, if you're a budding entrepreneur looking to start your own business, it's important to keep these criteria in mind when applying for a start-up loan. Furthermore, running a business is no cakewalk, especially when it comes to securing loans. We already know that businesses that don't meet the criteria are not eligible for the start-up loan. However, it's not just about meeting the criteria - there are some surprising factors that could make your business ineligible for a loan, even if you meet all the requirements! From being blacklisted to not having a Permanent Account Number, make sure you double-check that your business doesn't fall into any of these categories before applying for a start-up loan. Remember, it's not just about having a great idea - it's about navigating the legal and financial obstacles to make your dream a reality.
Let’s assume, you are eligible to receive the loan since your business doesn't fall under the non-eligible category mentioned earlier. While obtaining a loan can be exciting news, the thought of having to provide collateral in the form of your house, land, or gold might be causing you unnecessary stress. But wait, what if I told you that you don't need to worry about putting up your house, gold, land, or other valuable possessions as collateral?
That's right! The government has taken an innovative step to encourage startup businesses by offering a loan program that doesn't require traditional forms of collateral. Instead, all you need to provide is your agreement and proposal as collateral. This means that you can finally turn your dreams into a reality without worrying about losing your precious possessions.
Yeah! You've done it! You've met all the requirements to receive the loan, and you're ready to bring your innovative product to the market. You can't wait to show it off to all those relatives, friends, and family members who doubted you and refused to lend you the money you needed. There are additional factors to consider when applying for the loan. Once you have met all the criteria, you will need to prepare a few important documents, including your Registration Certificate, PAN Certificate, Tax Clearance certificate, and citizenship photocopy of the authorized representative.
Now that you have your proposal and documents prepared, the question is, where do you submit your proposal? The good news is that you have options – you can either submit your proposal in the prescribed format in schedule 1 in person at the Department of Industry (DOI), or online through the startup@doind.gov.np . Just remember that you can only submit one proposal per person, and false information or misrepresentation of information can render your proposal invalid.
So, how many start-ups will actually receive the loan? Good news: every start-up that meets the eligibility criteria can apply and potentially receive the loan. However, for the current fiscal year, the government has allocated a budget of 25 crores, which means that only 100 start-ups from across the country will receive the start-up loan this year.
But what about the loan duration and interest rate? Start-up enterprises that meet the government's criteria will receive loans for seven years through commercial banks invested by the government. The interest rate for the loan is maximum three percent, and the principal can be repaid only after three years.
To view the notice and directive of the DOI, please follow the link provided below:
https://doind.gov.np/detail/169 & https://doind.gov.np/detail/170
Congratulations! You've fulfilled all the requirements for the start-up loan and have your documents ready to go. This is your chance to take your entrepreneurial dreams to the next level and make your mark in Nepal's business landscape. With the start-up loan program, you can turn your dreams into reality and take your business to new heights. We're rooting for you and wish you the best in your loan application process. Show the world what you're made of and take charge of your future!
Still have any queries or confusion? Why not Book a Free Consultation Call with us! Also, don’t forget to share this to your friends who are starting up or own a business because sharing is caring.
