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Apr 27, 2021

Mahila Uddhyamshil Karja

In order to provide the Nepali women a platform to uplift their socio-economic status, the Government of Nepal has been providing collateral-free subsidized loans to them since the last few years which is known as Mahila Uddhyamshil Karja (Women entrepreneurship Loan).

What are the eligibility criteria for obtaining the loan?

The eligibility criteria for applying for the loan are as follows :

  • Must hold a PAN
  • Not be blacklisted under the Karja Suchana Kendra
  • Must have completed 18 years or,

In the case of a group, there must be a minimum of 5 members from different families and every member should have completed 18 years.

Where can I apply for the loan?

For this, you can apply to all the 4 classes of the banks i.e. commercial banks, development banks, finance companies & micro-finance institutions.

What is the maximum amount I can apply for the loan?

At present, it is Rs 15,00,000 (Fifteen lakh only)

What is the maximum period I can apply for the loan?

At present, it is 5 years only.

What would be the highest interest rate for the loan?

The  interest rate would be as follows:

  • Base rate of the bank + up to 2% spread 

Is there any requirement for furnishing collateral for the loan?

Ans. No, as already said, it is a collateral-free loan. However, you have to produce a personal guarantee or in case the business is run by the group then the collective guarantee is required.

What are the documents required to apply for the loan?

Ans. The following documents are required to apply for the loan:

  • Loan application form
  • PAN copy
  • Citizenship copy
  • Brief proposal with respect to the proposed business & utilization of the loan
  • Self-declaration of the applicant that she is not blacklisted as per the Karja Suchana Kendra
  • Documents relating to the collective guarantee, if applicable

Is this compulsory to cover my business with insurance?

Yes, You must cover your business with the insurance without any limit.

Can I get an insurance subsidy along with the loan?

Yes, once you apply for business insurance under this scheme, you have to pay only 50% of the insurance premium.

What are the areas in which I can utilize the loan?

The Nepal Rastra Bank (NRB) vide its circular no 4/2077-78 dated 13 October 2020 has prescribed the following areas for utilization of the loan: 

  • Agriculture
  • Industry
  • Service

For more details, kindly click on the link below and refer to the pages number from 34 to 38.

सहुलियत-पूर्ण-कर्जा-कार्यविधि-२०७५-तेस्रो-संशोधन-सहित-1 (2).pdf

What if I have utilized the loan other than for business purposes?

If it is found during the inspection by the bank that you have utilized the loan amount other than for the business purpose then no further interest subsidy will be provided to you. 

Further, you will be liable to pay back all the interest subsidies you have availed yourself previously

Can the bank deny my loan application?

Whether to provide the loan or not is the sole discretion of the bank. However, the bank has to inform you in writing within 21 working days of the loan application made about whether to sanction the loan or not.