Nepal’s Government Reports Surge in Startup Loan

Nepal’s government is reporting a surge in applications for its startup enterprise loan program, with 4,000 applicants already registered.

The deadline closes tomorrow, and officials say participation has been significantly higher than expected.

The scheme offers collateral-free loans of up to 2 million rupees for five years at a 3% interest rate, targeting innovators with new ideas, skills, and technology-driven projects.

Applications were opened on November 5 for the third phase of the program, focusing on sectors such as agriculture, IT and digital services, infrastructure, social services, tourism, and local resource-based industries.

According to Umesh Kumar Gupta, Executive Director of the Industrial Enterprise Development Institute, 765 projects have received startup loans since the program began in fiscal year 2023/24. Nearly 171 million rupees has been disbursed so far, with about 29 million rupees already repaid.

Young entrepreneurs say the loans have made starting a business easier, but stress the need for stronger project evaluation to ensure better outcomes.

Last year, out of 5,158 applicants, 600 projects received financing. The government has allocated 730 million rupees for this year’s program, with applications closing Tuesday.