The Startup Enterprise Loan Program, 2082 is the Government of Nepal's flagship scheme for funding early-stage, innovation-driven businesses without demanding collateral. Administered by the Industrial Enterprise Development Institute (IEDI) under the Ministry of Industry, Commerce and Supplies, the program provides collateral-free loans of up to NPR 20 lakh at a concessional interest rate of just 3 percent per annum to eligible startups. This guide breaks down exactly who qualifies, how the evaluation works, and how to apply.
Key takeaways
- Loans of up to NPR 20 lakh are available at a concessional 3 percent annual interest rate, with a tenure of up to 7 years.
- No physical collateral is required, your project proposal itself, backed by a government guarantee fund, serves as security.
- Eligibility depends on meeting a minimum number of innovation, technology, and scale criteria, not just having a good idea.
- Applications open through periodic public notices published by IEDI, with strict submission deadlines.
- Approved applicants must contact their designated bank within 30 days, or the approval lapses automatically.
What Is the Startup Enterprise Loan Program?
Nepal's startup ecosystem received a major boost through the Startup Enterprise Loan Program, 2082, introduced under the national budget, aiming to promote innovation, job creation, and technology-driven enterprises by providing concessional, collateral-free loans to eligible startups. The program operates under the Startup Enterprise Loan Operation Procedure, 2082, and the National Startup Enterprise Policy, 2081, marking a shift toward project-based financing where innovation itself serves as bankable security rather than land or fixed assets.
The scheme is backed by the Deposit and Credit Guarantee Fund (DCGF), meaning your project proposal can effectively be treated as security, and the lending bank charges a modest service fee of around 0.15 percent of the loan amount. The government has allocated a budget in the range of NPR 73 crore for the scheme, aiming to support several hundred startups in a given fiscal year.
Loan Terms at a Glance
| Term | Detail |
|---|---|
| Maximum loan amount | Up to NPR 20 lakh (2,000,000) |
| Interest rate | 3% per annum (concessional) |
| Loan tenure | Up to 7 years |
| Collateral | None required; project proposal serves as security via DCGF guarantee |
| Implementing agency | Industrial Enterprise Development Institute (IEDI) |
| Governing policy | National Startup Enterprise Policy, 2081; Startup Enterprise Loan Operation Procedure, 2082 |
| Bank service fee | Approximately 0.15% of loan amount |
| Business age limit | Generally registered for fewer than 7 years |
Figures reflect the Startup Enterprise Loan Program 2082 (2025) as publicly reported, including a loan guarantee backed by the Deposit and Credit Guarantee Fund and a bank service fee of roughly 0.15 percent of the loan amount. Each fiscal year's notice can adjust specific figures, always confirm the current cycle's terms on IEDI's official notice.
Eligibility: The Seven-Criteria Test
To qualify for the concessional loan, a startup enterprise must meet at least five of seven criteria set by the government. These typically include:
- Total annual income of the enterprise does not exceed NPR 50 lakh.
- Fixed capital, excluding fixed assets, does not exceed NPR 20 lakh.
- The enterprise has no more than ten full-time employees.
- The business has been registered and operating for a limited period, generally under 7 years.
- The enterprise uses information technology and creative or innovative thinking to solve consumer problems in production or distribution.
- At least 5 percent of the enterprise's total annual expenditure goes toward product development, market development, and research and development.
- The enterprise holds intellectual property, such as a registered patent, design, or software.
Expert tip
Fixed capital and revenue thresholds are easy to verify, but the IT-and-innovation and R&D-spending criteria are where most weak applications lose points. Document your R&D spending as a clear line item in your financial statement before you apply, evaluators cannot award credit for innovation they cannot see in your numbers.
Eligibility Self-Checker
Do you meet the Startup Enterprise Loan criteria?
Check every box that applies to your enterprise. This tool gives a planning estimate only; IEDI's official evaluation is the final word.
How to Apply: Step by Step
- Watch for IEDI's public notice. IEDI, under the Ministry of Industry, Commerce and Supplies, periodically invites submission of project proposals for startup enterprise loans through a formal notice, typically giving a window of about 21 days from publication.
- Download and complete the application form. The form is available from IEDI's official website; fill in your enterprise, founder, and project details accurately.
- Prepare your project proposal. Clearly describe the problem you are solving, your innovation, your financials against the seven criteria, and your fund utilization plan.
- Submit online or as hardcopy. Applications can be submitted through the official online portal or, for offline submission, as hardcopy documents at the IEDI office in Tripureshwor, Kathmandu, within office hours before the deadline.
- Wait for evaluation and scoring. Applicants are evaluated against the eligibility criteria, and a minimum score of 50 percent is required for final selection.
- Contact your designated bank promptly. Selected applicants must contact the designated bank within 30 days of approval, or the approval lapses.
- Receive disbursement in installments. For loans in the NPR 15 to 20 lakh range, funds are typically released in three installments, with the first installment released within 7 working days of signing the agreement and subsequent installments released after verifying fund utilization through bills, invoices, and site inspection.
Common mistakes and compliance risks
- Submitting more than one proposal per entrepreneur or household, most cycles allow only one application per person or household.
- Missing the 30-day window to contact your designated bank after approval, causing the offer to lapse automatically.
- Incomplete or inconsistent documentation between the proposal and supporting financial statements, a leading cause of rejection.
- Submitting fraudulent or fake documents, which can result in legal prosecution and long-term damage to financial credibility.
- Misusing disbursed funds outside the approved project plan, which can trigger loan recall, blacklisting, or legal action.
Frequently Asked Questions
Do I need collateral to get the Startup Enterprise Loan?
No. The program is collateral-free; your project proposal itself, backed by a government guarantee fund, functions as the security, which is a major shift from traditional asset-backed business lending.
How many of the seven eligibility criteria do I need to meet?
You generally need to meet at least five of the seven criteria covering revenue, fixed capital, employee count, business age, innovation use, R&D spending, and intellectual property, though exact requirements can be refined in each fiscal year's notice.
Can I repay the loan early?
Early repayment is generally permitted without penalty, though you should confirm this in writing with your designated bank as part of your loan agreement.
How long does the whole process take, from application to disbursement?
Based on prior cycles, the process from submitting your proposal to receiving your first installment has typically taken around two to three months, though this can vary by application volume and evaluation timelines each year.
When is the next application window?
IEDI opens the Startup Enterprise Loan application window periodically through public notices, often tied to the annual budget cycle. Because deadlines are strict and specific to each notice, check the official IEDI website directly for the current cycle rather than relying on a past year's dates.
Conclusion
The Startup Enterprise Loan Program, 2082, is one of the most accessible sources of early-stage capital in Nepal precisely because it evaluates ideas and execution capacity rather than land titles. The entrepreneurs who succeed are the ones who treat the seven-criteria test as a real due-diligence checklist well before the application window opens, not as paperwork to complete after the fact. Start documenting your R&D spend, IP registration, and financial ratios now, so you are ready the moment IEDI publishes its next notice.
Terms, eligibility criteria, budget allocation, and application windows for the Startup Enterprise Loan Program are set by IEDI and the Ministry of Industry, Commerce and Supplies and can change each fiscal year. Always verify current details at the official IEDI website (iedi.gov.np) before applying.
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