The government has revised the Interest Subsidy Procedure for concessional loans, enabling startups to access low-interest financing for the first time. Previously excluded, startups are now formally recognised as beneficiaries under the updated policy.
Under the new provisions, the government will provide an interest subsidy for up to five years. Banks and financial institutions may charge up to 1.5 percentage points above the base rate, of which the government will cover the equivalent of three percentage points as a subsidy.
Startup Loan Eligibility
To qualify for concessional startup loans, businesses must:
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Be registered as a private firm, partnership, company, or cooperative.
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Have been registered for less than 10 years.
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Maintain an annual turnover below NPR 150 million.
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Show no record of business failure.
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Present an innovative, creative business model with high growth potential.
Businesses not eligible for startup loans include:
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Unregistered entities
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Import-based businesses
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Companies on the financial blacklist
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Holding and investment companies
Revised Loan Limits Across Multiple Schemes
The government has also raised the maximum loan limits for various concessional lending categories:
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Educated Youth Project Loan – from NPR 700,000 to NPR 2 million
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Self-Employment Loan for Returnee Migrant Workers – from NPR 1 million to NPR 2 million
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Women Entrepreneurship Loan – from NPR 1.5 million to NPR 2.5 million
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Bhagat Sarvajit Enterprise Development Loan (Dalit community) – from NPR 1 million to NPR 2 million
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Boiler Replacement Loan for industries – up to NPR 5 million
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Natural Disaster Housing Loan – up to NPR 500,000 at concessional interest rates
Key Policy Highlights
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Loan ceilings cannot be revised upward once approved.
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Only one member per household can access concessional loans.
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The scheme remains valid until Ashad end, 2087 BS (mid-July 2031).
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Banks and financial institutions must determine grace periods, repayment schedules, and loan tenure based on loan type, repayment capacity, and risk factors.
This policy update is designed to empower startups, support youth entrepreneurship, and boost economic inclusion by making affordable credit more widely available.
