Deadline for Startup Loan Applications Extended Until November 27

Entrepreneurs interested in obtaining this year’s government-provided startup loans will have 21 days to submit their project proposals. The Industrial Enterprise Development Institute (IEDI) has announced that applications can be submitted both physically and online until November 27 (Mangsir 11) for the Fiscal Year 2025/26 startup loan program.

The IEDI issued a public notice on Wednesday following the approval of the Startup Enterprise Loan Operating Procedure, 2082 (first amendment). According to Clause 4 of the procedure, only eligible enterprises may apply for the loan. Similarly, as per Schedule 1 of the same procedure, individuals or organizations with innovative ideas, knowledge, skills, and capabilities can submit their project proposals within 21 days of publication of the notice.

The government launched the Startup Enterprise Program in Fiscal Year 2023/24 (2080/81). From this year, the maximum loan limit under the program has been reduced to Rs 2 million. In the past two fiscal years (2023/24 and 2024/25), the minimum loan per project was Rs 500,000 and the maximum was Rs 2.5 million. The current year retains the minimum limit of Rs 500,000 but lowers the maximum to Rs 2 million. Accordingly, startup entrepreneurs can now apply for loans of up to Rs 2 million this year.

IEDI Executive Director Umesh Kumar Gupta said the institution plans to provide loans to 400 entrepreneurs this fiscal year. According to the institution, 600 entrepreneurs received loans last fiscal year, while 165 entrepreneurs benefited in the preceding year. In total, 765 entrepreneurs have obtained such loans up to Fiscal Year 2024/25 (2081/82).

Eligibility Criteria

Enterprises must meet the following conditions to qualify for the startup loan program:

• The applicant must be a private firm, partnership firm, company, or cooperative enterprise registered with the relevant industry registration authority.
• The enterprise must be engaged in innovative or creative production of goods or services using new technology, with the potential for high growth.
• The business should demonstrate technological adoption in its operations.
• The enterprise should have been registered within the past 10 years.
• The enterprise’s annual turnover in any fiscal year after registration must not exceed Rs 150 million.
• The enterprise must be a new and active business, not one that has been divided or reorganized from an existing entity.
• The applicant must submit a properly completed project form as per Schedule 4 of the procedure along with the required documents outlined in Clause 8.