The Nepal Startup Loan Program is an initiative launched by the Nepal government to support budding entrepreneurs and innovative startups across the country. With a total fund allocation of NPR 250 million, the program aims to provide financial assistance to individuals looking to start or expand their businesses.
Eligible entrepreneurs can apply for loans of up to NPR 2.5 million, with an exceptionally low interest rate of 3% annually. This program is designed to make capital more accessible, particularly for young entrepreneurs struggling to secure funding through traditional means.
By offering favorable loan terms, the government hopes to stimulate the growth of small businesses, create job opportunities, and drive economic development in various sectors, including technology, agriculture, manufacturing, and more. This initiative is part of a broader effort to foster innovation and entrepreneurship in Nepal, making it an attractive opportunity for anyone with a viable business idea.
Areas for Startup Loan in Nepal
Nepal’s government startup loan program supports various sectors to encourage innovation and economic growth. If you are an aspiring entrepreneur, here are the key areas where you can apply for startup loans in Nepal:
- Agriculture and Agribusiness
- Information Technology (IT) and Software Development
- Tourism and Hospitality
- Manufacturing and Industry
- Renewable Energy and Environment
- Education and EdTech
- Healthcare and Biotechnology
- Handicrafts and Cottage Industries
- Creative Arts and Media
- Logistics and Transportation
How to Apply for Nepal’s Startup Loan Program
To apply for the Nepal government’s startup loan program, entrepreneurs need to submit a proposal that clearly outlines their business idea. This proposal must demonstrate innovative use of knowledge, skills, and abilities. The Industrial Enterprises Development Institute (IEDI) is responsible for overseeing the application process, and it will issue a public notice when applications are open.
Eligibility Criteria:
- Business Registration: The startup must be registered for no more than 10 years.
- Turnover Limit: The annual turnover should not exceed NPR 150 million.
- Self-Declaration: Entrepreneurs must declare that they haven’t received concessional loans from other agencies or that any previous loans have been fully repaid.
Loan Details:
- Loan Amount: Ranges from NPR 500,000 to NPR 2.5 million.
- Interest Rate: Fixed at 3% per annum.
- Repayment Period: Up to 5 years, with repayments beginning one year after receiving the first installment.
The proposal evaluation will consider the innovative aspects, job creation potential, and financial sustainability of the startup, among other factors. The loans will be distributed through designated banks, and the business itself will serve as collateral for the loan.
Process to Apply for Nepal Government’s Startup Loan
Applying for the Nepal government’s startup loan is a straightforward process that can be done both online and manually. Here’s a brief overview:
- Online Application:
- Visit the official website of the Industrial Enterprises Development Institute (IEDI) at iedi.org.np
- Navigate to the startup loan program section and complete the online application form.
- Submit all required documents, including a detailed business proposal, proof of registration, and financial statements, directly through the website.
- Manual Application:
- Alternatively, you can download the application form from the IEDI website or collect it from designated government offices.
- Complete the form and attach the necessary documents.
- Submit the completed application in person at the IEDI office or other specified locations.
The application will be reviewed by a committee of experts, and successful applicants will be contacted for further steps.
Before applying, ensure you have all the required documents, including your business registration certificate, PAN, tax clearance certificate, and a copy of the authorized representative’s citizenship certificate.
To apply for the Nepal government’s startup loan, you need to submit your application within 21 days from the date of your initial inquiry.
You need to submit your startup loan application within 21 days from the date of the announcement.
For more detailed information, visit the IEDI’s official website: iedi.org.np