Startup Loan by Nepal Government 2080/81

With the objective to motivate the entrepreneurs with new knowledge, ideas, skills and abilities to initiate the startup in Nepal, the government provides a startup loan procedure with the minimum interest rate i.e. maximum of 3%. The loan is granted for a maximum of 7 years and the loan amount is to be paid off in instalments from the 3rd year of the loan received.

 Rs 1.25 billion has been allocated to promote the startup ecosystem through venture capital and investment in startups for the Fiscal Year 2080/81.

The startup loan is to be distributed by Nepal Rastra Bank(NRB) and the fund for the loan will be deposited by the Ministry of Industry, Commerce and Supply in a separate account at the Nepal Rastra Bank. NRB is responsible for the selection of the bank for the distribution of the loan and the loan is to be provided in 2 instalments.

The interested entrepreneurs are to submit the proposal within 21 days after the publication of notice published by the Ministry of Industry, Commerce and Supply. One can Email: Send the application to startup@doind.gov.np. Or Visit the Department of Industry to submit your application. A separate committee is to be formed for the smooth functioning of the loan distribution while the committee is also responsible for the evaluation of the proposal that is presented by the interested individuals. The areas of startup must be based on the following list to be eligible for the loan amount:

  • Agriculture and animal
  • Forest
  • Tourism and entertainment
  • Science, information technology and communication
  • Health Services
  • Education and Training
  • Transportation services
  • Disaster risk management
  • Automobiles
  • Traditional method and production
  • Mining
  • Household
  • Food Production and Refining
  • Environment and waste management  

While the government has initiated such a progressive concept, it is also to be noted that there are duties that the entrepreneur has to fulfill such as to use the loan for startup solely, to pay back the loan amount and the interest amount in time as per the agreement between the entrepreneur and the bank, to provide the required details as asked by the bank, to report the committee and the bank about the progress of the startup yearly etc.

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