Nepalese startups will soon benefit from subsidized loans, with disbursement beginning in March 2025 under the Startup Enterprise Credit Operation Work Procedure. Eligible startups can borrow up to $18,800 (equivalent to Rs2.5 million) at an annual interest rate of 3%, aiming to boost innovation and entrepreneurship; the Kathmandu Post reported this on Monday.
The Industrial Enterprise Development Institute (IEDI), which oversees the program, reported receiving 5,158 applications this year. A shortlist will be announced by mid-January, followed by final selections in February. Rastriya Banijya Bank has partnered with IEDI to disburse the loans, backed by a government budget of $7.5 million (Rs1 billion) for the current fiscal year.
The application process involves submitting business proposals to an evaluation committee, including representatives from the government, private sector, and consultants. Shortlisted candidates will undergo credit appraisals before receiving funds.
Last fiscal year, 165 startups received loans totaling $1.43 million (Rs190.40 million), primarily supporting agro-businesses. Most recipients are actively repaying their loans, monitored by IEDI and partner banks.
The National Startup Enterprise Policy 2025, approved in May, seeks to attract foreign investment, establish the Nepal Startup Fund, and facilitate market entry for startups. The policy also outlines reforms to promote startup growth, with coordination by the Nepal Startup Council alongside various ministries and private-sector stakeholders.
Loan repayment terms vary: amounts up to $3,760 (Rs500,000) must be repaid in a single installment, $11,300 (Rs1.5 million) in two installments, and $18,800 (Rs2.5 million) in three installments. Entrepreneurs must submit quarterly progress reports and adhere to loan conditions. Failure to repay on time may result in account suspension or further action.
This initiative aims to position Nepal as a thriving hub for startups, fostering innovation and economic growth.
Bd-pratidin English/ Jisan
