Kathmandu, Nov 30:  Interest in the government’s subsidized startup loan program has reached unprecedented levels, with IT ventures dominating the loan demand. By the November 26 deadline, the Industrial Enterprise Development Institute (IEDI) had received 10,244 applications, including 8,203 submitted online, reflecting a significant jump from previous years.

Umesh Kumar Gupta, IEDI’s executive director, noted that while agriculture-focused startups accounted for nearly 45 percent of applications in the past two years, this year IT initiatives, particularly mobile app developers, dominate. Other sectors such as tourism, energy, and forestry-based enterprises also submitted a notable number of proposals. Eligible businesses cover agriculture, livestock, herbs, tourism, entertainment, IT, health, education, transport, infrastructure, food processing, renewable energy, environmental management, and disaster mitigation.

Proposals will be evaluated by a dedicated committee, with a preliminary list published before selected applicants make business presentations. Loans, to be disbursed via Rastriya Banijya Bank at 3 percent annual interest, are expected to be processed by January. Past recipients are monitored for compliance, including timely repayment, proper fund use, quarterly progress reports, and inspections; non-compliance can lead to account suspension.

Last fiscal year, IEDI received 5,120 applications, approving 600 loans, while 165 startups received support in 2023–24. In total, 765 startups have accessed Rs770 million in subsidized loans over two years, with Rs28.2 million repaid so far. This year, the maximum loan was reduced to Rs2 million, down from Rs2.5 million, with only Rs730 million allocated despite IEDI’s request for Rs1 billion. Experts warn that limiting funds may dampen innovation, even as banks have ample liquidity and low interest rates.

To qualify, startups must be under seven years old, registered before the notice, have paid-up capital and annual income below Rs5 million, fixed capital under Rs20 million, and employ no more than 10 people. The Ministry of Industry has also introduced a new program to provide training, guidance, and ecosystem support to new innovators through partnerships with universities, private-sector organizations, and provincial and local governments.

People’s News Monitoring Service

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