The Government of Nepal has launched the Startup Enterprise Loan Program Operation Procedure, 2082 (2025) to encourage innovation and entrepreneurship across the country. This program provides low-interest concessional loans to startups introducing new ideas, technologies, and creative business solutions.
This initiative marks a major milestone in promoting sustainable entrepreneurship and youth-led innovation in Nepal’s growing startup ecosystem.
Introduction: Empowering Innovation in Nepal
To support new and emerging entrepreneurs, the Ministry of Industry, Commerce, and Supplies has implemented a structured startup loan program.
The goal is to ensure financial inclusion, transparency, and accessibility for startups that have high potential for growth and job creation. This policy not only strengthens Nepal’s entrepreneurial ecosystem but also promotes the use of modern technology and innovation in business.
Objectives of the Startup Enterprise Loan Program
The Startup Enterprise Loan Program 2082 has been designed with the following key objectives:
To promote entrepreneurship and innovative ideas.
To support startups that use modern technology and creativity.
To generate employment through innovative enterprises.
To simplify and manage concessional loans for new businesses.
Scope of the Startup Enterprise Program
The program primarily targets technology-driven, innovative, and growth-oriented sectors that can make a strong economic impact in Nepal.
These include businesses working in agriculture, digital technology, tourism, and local resource-based industries.
Eligibility Criteria for Startup Loan in Nepal
To qualify for the Startup Enterprise Loan, an enterprise must meet the following requirements:
Be registered as a firm, company, partnership, or cooperative.
Demonstrate innovation and creativity in its business idea.
Utilize modern technology in production or service delivery.
Show strong growth and scalability potential.
Be registered for less than 10 years.
Maintain an annual turnover below NPR 15 million.
Submit a detailed project proposal as per Schedule-4.
Not Eligible Enterprises
The following are not eligible for the program:
Import-based trading businesses.
Blacklisted or bankrupt companies.
Unregistered entities or those under notification.
Holding or investment companies.
Fund Management and Loan Disbursement
The fund is managed by the Industrial Business Development Institution under a separate bank account.
Government-owned commercial banks are prioritized for loan disbursement.
If unavailable, authorized private banks may handle disbursement.
Any unused funds must be returned to the Federal Consolidated Fund at the end of the fiscal year.
Banks must submit quarterly and annual reports to the institution for transparency.
Implementing and Monitoring Agency
The Industrial Business Development Institution (IBDI) is responsible for implementing, monitoring, and maintaining records of the program.
It may also consult external experts for technical evaluation and monitoring.
Proposal Submission Process
Proposal Invitation
Proposals are invited through national newspapers and online portals.
Entrepreneurs are given 21 days to submit proposals.
Submissions can be made electronically or physically.
Proposals must align with the business sectors listed in Schedule-1.
Required Documents
Applicants must attach the following with their proposal:
Business registration and renewal certificate
PAN and tax clearance certificate
Audited financial statement of the previous year
Citizenship certificate of the applicant
Proof of innovation or technology use
Employee salary record (if applicable)
Proposal Submission Rules
Only one proposal per individual or family is accepted.
Applicants must declare that they haven’t received other startup or concessional loans.
False information will result in proposal rejection.
Proposal Evaluation Committee and Process
Committee Formation
The Proposal Evaluation Committee consists of:
Director or Officer of the Institution – Coordinator
Representative of Rastriya Banijya Bank – Member
Relevant Expert – Member
Evaluation Process
The committee:
Reviews submitted proposals
Conducts in-person or online presentations
Evaluates financial, technical, and innovation feasibility
Evaluation Criteria for Startup Loan Approval
The proposals are judged based on:
Business performance and financial stability
Innovation and growth potential
Use of technology and sustainability
Raw material sources and local value addition
Presentation quality
Employment generation capacity
Loan Selection, Amount, and Notification
Only proposals scoring 50% or higher are shortlisted.
The loan amount ranges between NPR 500,000 and NPR 2,000,000.
Selected entrepreneurs are notified via official website and SMS.
Selected applicants must contact the designated bank within 30 days or lose eligibility.
Loan Agreement and Disbursement Terms
Loan tenure: Up to 5 years
Interest rate: Only 3% per annum
Repayment start: 1 year after the first installment
Disbursement: In two parts — 50% initially and 50% after verification
This makes it one of the most affordable startup financing options in Nepal.
Collateral, Security, and Insurance Requirements
The enterprise itself acts as collateral for the loan.
Entrepreneurs must insure their projects.
10% of the loan will go to the Startup Loan Security Fund managed by the Deposit and Credit Guarantee Fund (DCGF).
Loan Repayment Rules
Repayment of principal and interest must follow the loan agreement.
No penalty applies for early repayment.
Defaults will be handled under existing banking laws.
Recovered amounts must be deposited within 3 days.
Administrative and Operational Costs
Up to 3% of total funds can be used for administrative expenses.
Temporary staff may be hired for program management.
These costs will not affect loan distribution or the amount available to startups.
Facilitation and Monitoring Committee
A Facilitation and Monitoring Committee will oversee coordination, policy execution, and performance monitoring.
Committee Members
Chief of Industrial Promotion Division – Coordinator
Executive Director of the Institution
Representatives from Nepal Rastra Bank, DCGF, and partner banks
Committee Responsibilities
Approve experts for proposal evaluation
Supervise and guide implementation
Coordinate with local and provincial offices
Resolve issues and monitor loan utilization
Monitoring and Reporting Mechanism
Banks must regularly monitor funded enterprises.
Quarterly and annual reports are mandatory.
The Industrial Business Development Institution will compile the data and forward it to the Ministry of Industry, Commerce, and Supplies for policy updates.
Sectors Covered Under the Startup Loan Program
1. Agriculture and Livestock-Based Enterprises
Agriculture, irrigation, and livestock businesses
Production-oriented enterprises
Forests, herbs, and forest product-based industries
Mining and mineral research
Food technology and nutrition enterprises
2. Information Technology and Digital Innovation
Science, communication, and information technology startups
Everyday life simplification technologies and digital tools
3. Infrastructure and Transport Sector
Waste management and eco-friendly projects
Transport and logistics innovation
Infrastructure and electric vehicle development
Goods and service distribution networks
4. Social Service and Tourism Sector
Education and e-learning platforms
Health and medical service startups
Tourism, hospitality, and entertainment enterprises
5. Traditional and Local Resource-Based Enterprises
Traditional and rural technology-based industries
Revival of cultural professions
Businesses using local and indigenous resources
Conclusion: Building a Startup-Friendly Nepal
The Startup Enterprise Loan Program 2082 (2025) represents a forward-thinking policy by the Government of Nepal.
With concessional loans at only 3% interest, simplified procedures, and technology-driven evaluations, the program aims to empower young entrepreneurs and innovators.
This initiative is a major step toward building a vibrant, innovation-driven economy and making Nepal a hub for startup growth and employment generation.
From proposal drafting to bank coordination, Estartup Nepalhandle everything to help your startup get funded under the Government’s 2082 Loan Program.
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