Are you an aspiring entrepreneur in Nepal looking to turn your business idea into reality? The Government of Nepal’s Startup Enterprise Loan Program (FY 2024/25) is here to help you do just that!
This collateral-free startup loan scheme is designed to support innovative entrepreneurs by providing affordable financing to launch or expand their ventures. In this detailed guide, we’ll explain everything you need to know about startup loans in Nepal — including eligibility, loan amount, required documents, the application process, and practical tips to increase your approval chances.
What is a Startup?
A startup is a newly established business that introduces innovative products or services to solve specific problems or fill unique market gaps. Unlike traditional businesses, startups often use technology, creativity, and innovation to bring change in industries such as education, health, tourism, finance, or IT.
In Nepal, the startup ecosystem is growing rapidly, and government initiatives like the Startup Enterprise Loan Program are encouraging young innovators to transform ideas into successful enterprises.
Why Startups Matter in Nepal
Startups are vital for Nepal’s economic growth. They:
- Create employment opportunities
- Encourage innovation and competition
- Support digital transformation and local production
- Attract youth into entrepreneurship
According to the Department of Industry (DoI), more than 100–200 daily inquiries are being received regarding startup loans — a clear sign that entrepreneurial enthusiasm in Nepal is booming.
Overview of the Government’s Startup Loan Program (FY 2024/25)
The Government of Nepal has introduced a collateral-free loan to help new entrepreneurs access capital easily. Below are the key highlights of the program:
| Feature | Details |
|---|---|
| Loan Amount | Up to NPR 25 lakh |
| Collateral Requirement | None (collateral-free) |
| Interest Rate | 3% per annum |
| Repayment Period | Up to 7 years |
| Government Budget Allocation | NPR 25 million for FY 2024/25 |
This loan scheme primarily targets early-stage businesses in tourism, retail, software, agriculture, manufacturing, and other innovative sectors. In the past month alone, over 10 companies have already applied for the program — showing its growing popularity among Nepali entrepreneurs.
Eligibility Criteria for Startup Loans in Nepal
To qualify for the startup loan program, your business must meet at least five of the following seven criteria set by the government:
- Paid-up Capital: Not exceeding NPR 50 lakh
- Total Annual Income: Should not exceed NPR 50 lakh
- Fixed Capital (excluding assets): Must not exceed NPR 20 lakh
- Number of Employees: Maximum of 10 full-time employees
- Criteria Combination: Must meet at least two of the first four criteria
- Innovation-Based: The business should provide a new or unique product/service
- Registered Entity: Must be a legally registered company in Nepal
Meeting these requirements ensures that your startup aligns with Nepal’s vision of promoting innovation and sustainable growth.
Loan Service Fee and Repayment Terms
A small service fee of 0.1% is charged during loan disbursement. The repayment schedule is flexible, based on the loan amount:
| Loan Amount | Repayment Installments |
|---|---|
| Up to NPR 5 lakh | 1 installment |
| Up to NPR 15 lakh | 2 installments |
| NPR 15–25 lakh | 3 installments |
This installment-based structure makes repayment easier and reduces financial pressure on small businesses.
How to Apply for a Startup Loan in Nepal
Applying for a startup loan is simple. Follow these steps to ensure a smooth application process:
- Prepare All Required Documents
Gather your registration certificate, PAN, tax documents, and identification copies. - Choose Your Submission Method
- Email: Send your completed application to [email protected]
- In-person: Submit your application at the Department of Industry (DoI), Kathmandu
- Submit and Track Your Application
After submission, you can follow up through official DoI channels to monitor your application status.
Required Documents for Startup Loan Application
You’ll need to provide the following documents along with your loan application:
- Company Registration Certificate
- Business PAN Registration Copy
- Recent Tax Filing Records
- Citizenship Copy of the company’s authorized representative
Pro Tip: Double-check that all documents are up-to-date and consistent to prevent processing delays.
Tips to Make Your Startup Loan Application Stand Out
Getting your startup loan approved depends on how well you present your business idea. Here are some helpful tips:
- Write a Strong Business Plan: Clearly describe your idea, goals, target audience, and expected growth.
- Highlight Innovation: Show how your business offers something new or solves a unique problem.
- Keep Financial Records Transparent: Well-organized financial data builds trust.
- Seek Expert Advice: Consult with the Department of Industry or local business incubators for guidance.