KATHMANDU, May 3: The government has shortlisted a total of 1,301 startup projects, in the preliminary phase, that have applied to receive concessional loans.
According to the Industrial Enterprise Development Institute (IEDI) under the Ministry of Industry, Commerce and Supplies, out of over 10,000 applicants, around 10 percent have been selected in the initial stage. The shortlisted firms will have to face a multistage assessment process to get final approval to get loans.
A total of 10,244 startups have applied for concessional loans called by the government in November, 2025. As 2,041 applicants submitted their project proposals physically, the remaining 8,203 applied online.
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The government initially allocated Rs 730 million in the annual budget, which was later increased to Rs 860 million. The fund is aimed for providing concessional loans to startup entrepreneurs for skill development, business expansion, marketing, and value-chain enhancement. In the current fiscal year, the government has targeted the disbursement of such loans to 400 startups.
The startup financing initiative falls under the government’s 39-point “Immediate Reform Work Plan for Promotion of Effective Public Service 2025,” which aims to accelerate startup financing and streamline related processes. Under the Startup Loan Facilitation Scheme, eligible startups can receive collateral-free loans at a concessional interest rate of three percent.
Under the revised provision, a single startup can receive a concessional loan ranging from Rs 500,000 to Rs 2 million, down from the previous ceiling of Rs 2.5 million.
Firms registered within the past 10 years and with an annual turnover of up to Rs 150 million are eligible for the scheme.
In Fiscal Year (FY) 2023/24, the government had allocated Rs 250 million for the program, under which 165 startups received funding. In the previous fiscal year, 600 projects were selected for funding with a total allocation of Rs 1 billion, of which Rs 886.60 million has already been disbursed, according to the IEDI.
