Startups Granted Access to Loan at 3% Interest Rate, 2024
The Government of Nepal, in a groundbreaking move, has approved the Startup Enterprise Loan Operation Procedure 2080, signaling a new era for aspiring entrepreneurs. The Ministry of Industry, Commerce, and Supply, in collaboration with the Ministry of Finance, has undertaken this initiative to foster innovation, knowledge, and skill-driven startups in Nepal.
Assistant Spokesperson of the Ministry, Shekhar Babu Karki informed that Startups can get a loan of 2.5 million rupees at a minimum 3 percent interest. The responsibility for the implementation of the program has been entrusted to the Industrial Business Development Foundation in Nepal. The operation of the startup loan will be handled by government-owned commercial banks and companies working on certain sectors will be eligible to receive the loan.
Eligible Sectors
Startups operating or working in 16 diverse sectors are eligible for receiving startup loans in Nepal. These sectors encompass agriculture & livestock, forest products, tourism & entertainment, hospitality, science & technology, information & communication, transportation services, and automobiles. The scope extends further to human health services, education, teaching & learning, easy and safe transportation, traditional technology production, service flow process improvement, mining and mineral research and development, household or daily living, waste management, environmental protection, disaster management, as well as areas dedicated to alternative and renewable energy and climate change mitigation.
Disbursement Strategy
The disbursement plan for startup loans is structured based on the loan amount. For loans up to 5 lakhs, a single installment is allocated, two installments for loans up to 15 lakhs, and three installments for loans up to 25 lakhs.
Eligibility Criteria
To ensure the efficacy of this program, strict eligibility criteria have been outlined. Companies applying for the loan must be registered in accordance with prevailing laws and be less than seven years old. The paid-up capital should fall between two lakh rupees and ten lakh rupees, with a fixed capital (excluding real estate) not exceeding 20 million rupees. Furthermore, the annual turnover of the company has to reach 20 million rupees.
If implemented successfully and effectively, the approved startup loan plan is sure to fuel the growth of Nepal’s entrepreneurial ecosystem, providing a solid foundation for startups to flourish and contribute significantly to the nation’s economic development.
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