The Government of Nepal has opened applications for startup loans under the Startup Enterprise Loan Operating Procedure. The Industrial Business Development Foundation has invited interested entrepreneurs to submit project proposals within 21 days.
This loan program aims to support new business ideas and innovation in Nepal. Applicants must meet the eligibility criteria listed in Section 4 of the procedure. Entrepreneurs must have updated knowledge, creative ideas, and special skills in their business field.
Proposals must be prepared in the given format and submitted online.
According to the revised rules, a startup entrepreneur can receive up to NPR 2 million (20 lakh) this fiscal year. Earlier, the government used to provide up to NPR 2.5 million (25 lakh) at a 3% interest rate.
The government has launched this program to support young innovators, promote entrepreneurship, and create jobs in Nepal.
FAQs
1. What is the Nepal Government Startup Loan Program?
It is a government-backed loan scheme to support new and innovative business ideas in Nepal. Under this program, eligible startup entrepreneurs can get financial support to start and grow their business.
2. How much loan can a startup entrepreneur get?
For the current fiscal year, a startup entrepreneur can receive up to NPR 20 lakh (2 million).
Previously, the limit was NPR 25 lakh at 3% interest.
3. Who is eligible to apply for this startup loan?
To apply, you must:
Have an innovative and original business idea
Have updated knowledge and skills in your business field
Show creative thinking and capability to run the project
Meet the eligibility criteria mentioned in Section 4 of the official procedure
4. Do I need to show business experience?
Not necessarily. The focus is on:
New ideas
Skills and knowledge
Ability to execute the plan
However, any experience or training in your project area will help.
5. How long is the application period?
Applicants must submit their proposals within 21 days from the notice date.
6. How can I apply for the startup loan?
You must:
Prepare your business proposal in the government-specified format
Submit the proposal online through the platform mentioned in the notice
(You may need to upload documents and fill forms online.)
7. What documents are required for application?
Required documents usually include:
Citizenship certificate
Detailed project proposal
Business plan with cost and revenue estimates
Skills / qualification proof (training, certificates, etc., if any)
PAN registration (if applicable)
Exact documents depend on the final guideline.
8. Are there any priority sectors?
Yes, the government usually gives priority to:
Innovation and technology
Agriculture-based startups
Green and sustainable projects
Manufacturing and value-addition businesses
Youth-led and skill-based businesses
(However, any creative idea may be considered.)
9. Do I need collateral?
The government scheme often provides loans without traditional collateral, but some conditions or guarantees may apply depending on rules and bank implementation.
10. What is the interest rate?
Earlier, the government offered 3% loan up to 25 lakh.
For the new revised scheme, full interest-rate details will be confirmed as per new guidelines — but it is designed to be low-interest and startup-friendly.
11. Can an existing business apply?
The loan is mainly for early-stage and new startups.
However, a very new business with innovative plans may be considered if it fits the startup criteria.
12. What happens after applying?
Your proposal will be reviewed based on:
Innovation and feasibility
Skills and capability
Market potential
Financial plan
Eligibility compliance
Shortlisted entrepreneurs will be contacted for next steps.
13. When will the money be provided?
Once approved, funds are released as per the bank or government schedule. Some may be released in phases based on progress.
14. Can I use the loan for any purpose?
No. The loan must be used only for the startup project, such as:
Product development
Machinery and equipment
Technology and software
Marketing and launch activities
Business setup expenses
Personal or unrelated spending is not allowed.
15. Where can I check updates?
You can check updates on:
Ministry of Industry, Commerce and Supplies website
Industrial Business Development Foundation website
Official government notices
National newspapers and online portals
