‘Innovative Start-up Capital Credit Flow Procedure, 2077’ Issued | To Provide Loan Of Up Rs 50 Lakh
December 2, 2020 | Investopaper
The government has issued ‘Innovative Start-up Capital Credit Flow Procedure, 2077’ with the objective of providing start-up capital to the operation of innovative enterprises and businesses. According to Finance Minister Bishnu Prasad Poudel, the government is ready to support those who work creatively. In the policy, program and budget of the current fiscal year, it is mentioned that the work of innovation will be taken forward.
On the proposal of the Ministry of Finance, there will be a steering committee with a member coordinator appointed by the Vice-Chairman of the National Planning Commission to manage the work related to credit flow as per the working procedure approved by the Council of Ministers.
The committee will call for proposals to provide loans to micro, home, small and medium enterprises, entrepreneurs or inventors who have not been able to raise the required investment capital in the fields of industry, agriculture, energy, health, tourism, education, information technology and others. It will prepare the criteria for the selection of the proposal, limit of loan amount, installment, number of proposals to be selected for loan, and monitor whether the borrower, inventor, entrepreneur or businessman has used such loan properly or not.
According to the procedure, the inventor, entrepreneur or businessmen who wants to get a loan should mention in the proposal the innovative invention, venture or business, its risk, possible return, required amount, loan amount expected from the government and its impact on the socio-economic sector. There will be a proposal evaluation sub-committee with a member coordinator from the Ministry of Industry, Commerce and Supply for the selection of proposals.
The amount allocated to the Ministry of Industry, Commerce and Supply will be provided as loan at the interest rate of 2 percent through the commercial bank specified by the committee. It is also mentioned in the working procedure that a maximum amount of Rs. 50 lakh loan will be provided with no more than 50 percent of the total cost of the business.
While approving the loan, the bank will be able to take the guarantee of the inventor, entrepreneur or businessman, business action plan, agreement and project as loan collateral. The procedure stipulates that the loan repayment period will start within one year of receiving the last installment of the loan and the entire installment and interest must be repaid within four years of the commencement of the repayment period.
Chief of the Economic Policy Analysis Division at the Ministry of Finance, Yamlal Bhusal, said that the implementation of the working procedure would greatly help the revival of the weak economy from Corona. If any loan or grant amount has been received from the government for the establishment or operation of an innovative invention, enterprise or business, the proposal to act accordingly will not be selected. Along with the working procedure, the innovative initial capital grant procedure approved by the Council of Ministers on Magh 20, 2076 has been repealed.
