Kathmandu, October 8
The Youth and Small Entrepreneurs Self-employment Fund (YSESF) had decided on December 10 last year to provide Rs 500,000 loan to people who want to be self-employed, however the government has not yet made a decision on the proposal. The government has been providing seed money to people who want to start a business without collateral.
The fund had proposed to increase the loan amount from Rs 200,000 to Rs 500,000, however the government still has to approve the operation bylaws of YSESF to implement the decision to raise the loan amount.
YSESF’s board meeting held on December 10 last year had finalised the amendment of its operation bylaws and had forwarded the amendment proposal to the Ministry of Cooperatives and Poverty Alleviation (MoCPA), which is responsible for sending it to the Cabinet for final approval. Moreover, the Ministry of Finance also had principally agreed to YSESF’s proposal.
“MoCPA has yet to forward the amendment proposal to the Cabinet due to which the decision to raise the seed money has been delayed,” said a high-level officer of YSESF. “We have heard that the file has been forwarded to the Ministry of Law, Justice, Constituent Assembly and Parliamentary Affairs, and it may take more time for the proposal to be sent to the Cabinet.”
YSESF had also proposed to increase the wholesale lending amount to the banks and cooperatives to Rs 10 million from the earlier Rs five million. Similarly, it had also planned to cut the lending rate to 10 per cent from 12 per cent. The government is also providing 60 per cent subsidy on interest if a debtor pays back the loan instalments on schedule.
Through the amendment, YSESF has also planned to invest at least Rs 10 million each in all the 753 local bodies that will be created after the country fully adopts the federal structure of governance. “This programme will create self-employment opportunities and also help mobilise the fund in a proportionate manner across the country,” said Prem Dangal, executive vice chairman of YSESF.
The government had established the YSESF in 2007 with an aim to convert unemployed citizens to entrepreneurs. The government has planned to create 50,000 jobs through self-employment in the current fiscal year by utilising the funds through YSESF.
YSESF is implementing its plans and programmes in 73 districts of the country. It is mobilising funds through cooperatives and banks and financial institutions and 38,000 people availed the loan facility in the last fiscal year.
A version of this article appears in print on October 09, 2017 of The Himalayan Times.