Nepal’s startup ecosystem is buzzing with anticipation as 1,314 startups have been shortlisted to receive loans of up to NPR 25 lakh at an unprecedented 3% interest rate. This bold initiative, spearheaded by the Industrial Enterprise Development Institute (IEDI), is set to empower budding entrepreneurs and fuel Nepal’s economic growth.

If you’re curious about what this means for startups in Nepal, how the shortlisting process unfolded, and how you can prepare for future opportunities, read on!

The Big Picture: What Is the Startup Loan in Nepal?

The Startup Loan Program is a Nepal Government-backed initiative aimed at fostering innovation, reducing unemployment, and supporting small businesses. This year, the government has allocated NPR 1 billion to provide low-interest loans to innovative enterprises.

Here’s the exciting part: out of 5,158 applications, 1,314 promising startups have made it to the preliminary shortlist.

What Happens Next?

• Presentation Phase: Starting January 2025, shortlisted startups will present their business proposals to an evaluation committee.
• Final Selection: The best proposals will be announced by February 2025.
• Loan Disbursement: Approved startups will receive their loans through Rastriya Banijya Bank by March 2025.

What Makes This Loan Special?

This program is designed to eliminate the barriers that often hinder entrepreneurs. Here’s why it’s a game-changer:

1. Generous Loan Amount: Borrow up to NPR 25 lakh, ensuring ample funding for your business.
2. Unbeatable Interest Rate: At 3% per annum, it’s significantly lower than traditional bank loans.
3. No Collateral Needed: The startup itself acts as the collateral, removing a major hurdle for new businesses.

Eligibility: Are You the Right Fit?

Here’s who qualifies for the startup loan:

• Age of Business: Must be less than 10 years old.
• Revenue Cap: Annual turnover should not exceed NPR 15 crore.
• Registration: Must be registered as a private firm, partnership, company, or cooperative.

Exclusions:

• Import-based businesses.
• Startups blacklisted for financial irregularities.
• Holding or investment companies.

The Selection Process: How 1,314 Startups Made the Cut

The evaluation process was rigorous, ensuring only the most innovative and viable startups advanced. Here’s a look at the journey:

1. Application Submission: The IEDI received 5,158 proposals through online and offline channels.
2. Initial Screening: Proposals were reviewed for feasibility, innovation, and market potential.
3. Preliminary Shortlist: The 1,314 most promising startups were chosen for the next phase.

What’s Next for Shortlisted Startups?

If you’re among the shortlisted, here’s what you need to prepare:

1. Business Presentation: Highlight your innovation, market demand, and operational plan.
2. Documentation: Bring originals of your:
   • Business registration certificate.
   • PAN/VAT certificate.
   • Tax clearance certificate.
   • Citizenship documents.
3. Pitch Your Vision: Clearly explain your:
   • Unique value proposition.
   • Market strategy.
   • Employment potential.

Pro Tip: Keep your presentation concise—each applicant gets just 10 minutes!

Flexible Repayment Options

The program offers startups much-needed breathing room with a flexible repayment schedule:

Repayment starts one year after receiving the first installment.

Challenges and Opportunities

Challenges for Startups in Nepal

• Access to Credit: Only 16% of startups secure bank loans.
• High Operating Costs: Importing raw materials remains expensive.
• Limited Ecosystem: Lack of mentorship and skilled manpower can hinder growth.

Opportunities from the Startup Loan Program

• Funding Boost: The government’s NPR 1 billion allocation provides unprecedented financial support.
• Capacity Building: Startups are encouraged to innovate and create jobs.
• Policy Support: Initiatives like the National Startup Enterprise Policy 2024 aim to attract foreign investments and build a stronger ecosystem.

A Long-Awaited Commitment

After years of anticipation, Nepal's government has delivered on its promise to support the country's burgeoning startup ecosystem. Through the Startup Enterprise Loan program, the government had disbursed over NPR 170 million to 165 startups last year. This move marks a significant milestone in promoting entrepreneurship and innovation in Nepal.

Need Expert Guidance? We’re Here to Help!

Confused about the application process or unsure how to present your business? We’ve got your back!

• Contact Us on WhatsApp/Viber: +977-9818098098
• Download the Khatapana App: Get direct support from our experts to simplify your journey.

Let’s turn your vision into a success story! 

Your Time to Shine

The Startup Loan in Nepal isn’t just about funding—it’s about empowerment. With 1,314 startups shortlisted and more opportunities on the horizon, Nepal’s entrepreneurial ecosystem is set for unprecedented growth.

If you’ve been waiting for the perfect opportunity to launch or expand your startup business in Nepal or raise capital, now is the best time. Are you ready to take the leap?

And don't worry if you have not been selected this year. You still have other opportunities like Nepal Invests that connects ambitious entrepreneurs of Nepal to visionary and trusted investors from Nepal and beyond. And of course, we also have Shark Tank Nepal.