The government is providing concessional loans to 400 startup enterprises in the current fiscal year 2025/26. The Industrial Enterprises Development Institute (IEDI), an autonomous entity dedicated to developing human and knowledge resources for entrepreneurship and business promotion in Nepal, has issued a public notice calling for project proposals from aspiring entrepreneurs seeking startup loans. Interested applicants can submit their proposals by Nov 27.
The loans will be disbursed under the Startup Enterprise Loan Operation Procedure, 2025, approved recently by the government. As per the revised procedure, qualified applicants must demonstrate innovative ideas, knowledge, skills, and the capacity to transform their concept into viable enterprises.
The government has allocated Rs 730m for the program in the current fiscal year. Loans will be offered at a three percent interest rate. Altogether, 765 startups have benefited from the program so far. In the previous fiscal year, 600 entrepreneurs received concessional loans under the same scheme, while 165 were financed in fiscal year 2023/24.
The government, however, has revised the loan limit for this fiscal year. Startup enterprises, which have received financing of up to Rs 2.5m, will get only up to Rs 2m in the current fiscal year. The minimum loan amount remains unchanged at Rs 500,000. To qualify for the scheme, a startup must be registered as a private firm, partnership firm, company, or cooperative enterprise under relevant laws. Eligible businesses must be involved in the production of goods or services using innovative and creative technology, have growth potential, and not exceed 10 years since registration. Additionally, their annual turnover should not surpass Rs 150m.
The program covers 16 priority sectors, including agriculture and livestock, tourism and hospitality, forest-based industries, science and technology, health services, education, renewable energy, environmental protection, waste management, and climate change mitigation. The IEDI has urged interested entrepreneurs to submit detailed project proposals as per the prescribed format within the deadline. The proposals will be evaluated by a three-member committee as outlined in the amended procedure. Successful applicants will also be offered entrepreneurship and business management training before receiving the loan.
The startup loan initiative, which was first introduced in fiscal year 2023/24, is part of the government’s broader policy to foster a culture of innovation and reduce youth unemployment through entrepreneurship.
