KATHMANDU, Oct 4: The government has provided more than Rs 1.05 billion in low-interest, collateral-free loans to 922 startups as part of its drive to improve access to finance for new businesses.
The Industrial Enterprise Development Institute (IEDI), under the Ministry of Industry, Commerce and Supplies, said Rs 1.057 billion has so far been disbursed to businesses selected through the government’s startup financing program.
The 922 recipients were among 966 projects that reached the final stage of evaluation about three months ago. Earlier, 1,301 proposals had cleared the preliminary selection process.
Under the Startup Loan Facilitation Scheme, qualifying businesses can borrow between Rs 500,000 and Rs 2 million without providing collateral. The loans carry an annual interest rate of three per cent.
Businesses registered within the past 10 years and reporting an annual turnover of no more than Rs 150 million were eligible to apply.
Interest in the program was high. A total of 10,244 startups from across the country applied after the government invited proposals in November 2025. Of them, 8,203 submitted applications online and 2,041 filed proposals physically.
The financing scheme forms part of the government’s 39-point “Immediate Reform Work Plan for Promotion of Effective Public Service 2025,” which includes measures aimed at speeding up startup financing and simplifying procedures for entrepreneurs seeking government-backed credit.
Government funding for startups has expanded in recent years. In fiscal year 2023/24, Rs 250 million was allocated to the programme, and 165 startups received loans.
In the previous fiscal year, the government set aside Rs 1 billion for the scheme and selected 600 projects. Of that amount, Rs 886.60 million has already been disbursed, according to the IEDI.
The institute said the program is designed to connect promising business ideas with affordable financing while helping technology- and innovation-based enterprises enter and expand in the market.
People’s News Monitoring Service
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