Aug 2: Around 700 persons have filed application for the seed capital announced by the government for start-up business.

Initially, the government had said it would provide the capital as grant but later decided to provide it as concessional loan.

The National Planning Commission (NPC) has issued a notice in early May seeking application for the government support.

According to the NPC, start-up businesses in the fields of information technology, agriculture, health, tourism, education and industry have filed the application.

NPC informed that the applicants will receive 50 percent amount needed for establishing the start-up business as concessional loan from the government. The rate of interest for such loan has been fixed at 2 percent per annum.

The applicant has to clearly mention in the proposal the status of self investment, the amount it seeks from the government and its investment partners.

The applicant must also mention the permanent account number (PAN) of the individual or the organisation seeking government support.

Officials at the NPC expect more applications as the deadline for submission has been extended due to the lockdown. 

The government had envisioned a Challenge Fund to promote start-up businesses during the budget of last fiscal year. Later, a committee headed by NPC member decided to convert the fund into Start-up Business Seed Capital Grant. The government recently decided to provide the amount as concessional loan instead of grant because of the fragile economy caused by coronavirus pandemic.