Nepal’s government has taken a big step to boost entrepreneurship. Under its Startup Loan Program, 661 startup businesses have been recommended for funding support.

The Industrial Enterprise Development Institute (IEDI) had invited 1,314 eligible applicants to present their business proposals. Out of them, 1,073 startups gave presentations. After evaluating these, IEDI selected 661 startups for loan recommendations.

These chosen startups will receive collateral-free loans of up to NPR 2.5 million (25 lakh) at an interest rate of just 3%. The government has allocated NPR 1 billion for this program in the current fiscal year.

To access the funds, recommended entrepreneurs must sign an agreement with Rastriya Banijya Bank. They are expected to repay the loan—both the principal and interest—on time, as per the bank’s rules.

Loan disbursement will be done in phases:

• Up to NPR 500,000 will be provided in one installment.

• Loans up to NPR 1.5 million will be released in two phases.

• Larger loans will be distributed in three phases.

Banks can charge a service fee of up to 0.1% of the loan amount to cover administrative costs.

This move is part of Nepal’s effort to encourage innovation, job creation, and economic growth by supporting early-stage businesses with easy financing.