Nepal’s start-up ecosystem is set to receive a significant boost as the government gears up to disburse start-up loans beginning the second week of Jestha (May/June). The Industrial Enterprise Development Institute has announced that selected businesses, chosen based on their presentations, will commence receiving loans during this period, fueling entrepreneurial endeavors across diverse sectors.
Out of the 1,658 applicants vying for the start-up loans, 394 have been shortlisted for the loan process. The Institute is currently evaluating these shortlisted applicants, with the final list of loan recipients expected to be publicized by May 28.
Under this initiative, the government plans to provide loans of up to Rs 2.5 million (approximately $20,000) to these start-ups, with commercial banks offering an annual interest rate of just three percent. The disbursement will occur in one installment for loans up to Rs 500,000, two installments for Rs 1,500,000, and three installments for Rs 2,500,000, providing much-needed seed funding for aspiring entrepreneurs.
In addition to the start-up loans, the Nepalese government has introduced several supportive measures to encourage the growth of start-up businesses. These include free renewal of business registration and other associated services, as well as policy facilitation to attract foreign direct investment in this sector.
Furthermore, a challenge fund worth Rs 1 billion (approximately $8 million) has been established to further support start-up initiatives, nurturing innovation and fostering a thriving entrepreneurial ecosystem.
Eligible sectors for start-up business loans range from agriculture and livestock to renewable energies and climate change initiatives, reflecting the government’s commitment to fostering entrepreneurship and innovation across diverse sectors. This initiative aims to drive economic growth, create employment opportunities, and harness the potential of Nepal’s youth in shaping the nation’s future.
As the start-up culture gains momentum in Nepal, this government-backed initiative is expected to unleash a wave of entrepreneurial spirit, attracting both domestic and international investors to the country’s burgeoning start-up scene.
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