The Lumbini provincial government has started a business development program for unemployed youth and recently returned migrant workers affected by the Covid-19 pandemic.
The provincial government has declared that it will provide beneficiaries with easy loans and grants to start their own businesses.
According to the Ministry of Industry, Tourism, Forests and Environment, priority for the program will be given to recent returnees from India and abroad who lost their jobs due to the pandemic, disabled people, conflict victims, single women and people from marginalized communities.
The ministry has said it will provide loans to beneficiaries and pay their interest over three years.
On Friday, the ministry and the provincial office of Nepal Bank Limited signed an agreement to implement the program. According to the agreement, around Rs 430 crore will be mobilized for the business development program in the province.
An agreement has also been reached to provide Rs100 million to the bank through the Business Development Fund in the current fiscal year. According to the authorities, 1,300 people will benefit from the program in the current fiscal year.
Under the plan, the ministry will provide between Rs 300,000 and Rs 1 million as a loan to aspiring entrepreneurs based on the businesses they establish. The ministry will also repay loans of such amounts over three years.
“Our goal is to use our workforce in our own province and create employment opportunities through the entrepreneurial development program”, said Lila Giri, Minister of Industry, Tourism, Forests and Environment of the province. “The ministry will add more funds in the next fiscal year after evaluating the effectiveness of the program.”
To receive the grant, you need a certificate of registration from a business in fiscal year 2020-21, a recommendation from the Office of Small Industries and Farmhouses, a self-declaration that they have not received a grant from any government agency, and a Nepalese citizenship certificate. . The bank will grant loans after evaluating these documents.
Pasang Dhwaj Sherpa, provincial office manager of Nepal Bank Limited, said the bank’s branches in all districts of the province will grant loans after inspecting and verifying documents.
“Interest will be stagnant for three years. The loans will be granted according to the demand and the need of the entrepreneurs”, said Sherpa.
Rajan KC, secretary of the ministry, said: “According to the programme, a fund of Rs 19.1 crore has been allocated for Rupandehi, Rs 12.4 crore for Kaplivastu and Rs 12 crore for Dang district. The beneficiaries will be selected by the bank itself and not by the ministry”.