Raising money in Nepal is hard. Banks want collateral. Investors want traction. But most founders are stuck in the middle stage — you have an idea, a prototype, maybe a few early customers, but no land to mortgage. That is exactly where the Startup Enterprise Loan under the Startup Enterprise Loan Operation Procedure, 2082 comes in. Run through the Industrial Enterprise Development Institute (IEDI), this program lets eligible startups borrow from NPR 5 lakhs up to NPR 20 lakhs (with a proposal on the table to increase this ceiling further in future rounds) at a subsidised interest rate, without pledging land or a house as collateral. Your project itself acts as security.
But like most government notices, the language can feel technical and confusing.
Visit https://iedi.gov.np
This blog breaks the notice down into simple, founder-friendly language:
This article is an explainer based on the official notice and the Startup Enterprise Loan Operation Procedure, 2082 (including first amendment). Always cross-check details with the latest notice on iedi.gov.np
The program is operated through IEDI, Tripureshwor, Kathmandu and targets entrepreneurs who:
Are registered as an industry
Operate in specified startup-friendly sectors
Use new and creative ideas, knowledge and technology
Have the capacity and commitment to grow
The notice invites eligible startups to submit a project proposal in the prescribed format within 21 days from the date of publication of the notice.
In simple words, this loan is for:
Entrepreneurs who want to apply for funding under the Startup Enterprise Loan
Those who meet the minimum knowledge, skills, ideas and capacity in the prescribed sectors
Startups that fit the official definition of “startup enterprise” under the Procedure
If you’re trying to build an innovative business and you fall within the defined sectors and criteria, this scheme is meant for you.
Your startup must fall into at least one of the following sectors to be eligible.
Agriculture, irrigation and livestock-based enterprises
Productive / manufacturing enterprises
Forest-based enterprises (herbs and forest products)
Mines and minerals exploration and development
Food technology and nutrition enterprises
Science, technology, communication and IT
Technologies that simplify household or daily life
Waste-management related enterprises
Enterprises that improve public service delivery, production or processes
Convenient and safe transport and logistics
Infrastructure construction works
Electric vehicles and automobiles
Enterprises related to systems for the distribution of goods or services
Enterprises related to education and teaching/learning
Enterprises related to human health services
Enterprises related to tourism promotion, entertainment and hospitality
Enterprises based on traditional and rural technologies
Enterprises working to revive traditional occupations and businesses
Enterprises based on local resources and means
Agriculture, irrigation and livestock-based enterprises
Productive / manufacturing enterprises
Forest-based enterprises (herbs and forest products)
Mines and minerals exploration and development
Food technology and nutrition enterprises
Science, technology, communication and IT
Technologies that simplify household or daily life
Waste-management related enterprises
Enterprises that improve public service delivery, production or processes
Convenient and safe transport and logistics
Infrastructure construction works
Electric vehicles and automobiles
Enterprises related to systems for the distribution of goods or services
Enterprises related to education and teaching/learning
Enterprises related to
human health services
Enterprises related to tourism promotion, entertainment and hospitality
Enterprises based on traditional and rural technologies
Enterprises working to revive traditional occupations and businesses
Enterprises based on local resources and means
The Procedure clearly defines which enterprises count as “startups” for the purpose of this loan.
(All conditions must be met)
Your enterprise should:
Be registered as an industry
– as a private firm, partnership firm, company, or cooperative institution
Use new and creative ideas and technology to produce goods or services, with high growth potential
Be technology-oriented or technology-based
Have not more than 10 years passed since the date of registration
Have annual turnover that has not exceeded NPR 15 crore in any financial year after registration
Be a new enterprise
– not an organization formed by merger or business split
Have the project form filled as per Schedule-4 and all required documents under Section 8 attached
If even one of these conditions is not met, the enterprise may not be treated as a startup under this scheme.
(Even if some of the above conditions look fulfilled)
Your enterprise will not be treated as a startup for this loan if:
It is not registered as an industry under prevailing laws
It only imports goods or services from abroad and sells/distributes them within Nepal
It has been blacklisted under prevailing laws
It was registered after the date of publication of the notice
It is registered as a holding or investment company under the Industrial Enterprise Act, 2076
These exclusions are important. Many businesses think they are “startups”, but this Procedure uses a very specific legal definition.
That means your business plan, financials and project design must be strong enough to convince the evaluating body that your startup is viable and worth supporting
IEDI expects a complete, well-documented application. The following documents must be attached with your proposal.
Copy of industry registration certificate
Copy of renewal certificate
Copy of PAN
Tax clearance certificate for the latest FY 2081/82
Copy of audit report for the previous FY 2080/81
Copy of the citizenship certificate of the authorized representative of the firm, company or industry
Evidence or self-declaration that innovation and technology are being used in the enterprise
Copy of the statement of annual wages/salaries of the industry/employees for the latest fiscal year
You must submit a self-declaration confirming that no concessional loan, startup enterprise loan, or similar concessional loan has been taken from:
The Government of Nepal
Any provincial government
Any local level authority
If you are already enjoying another concessional loan of a similar type from government entities, you cannot claim this facility.
Copy of industry registration certificate
Copy of renewal certificate
Copy of PAN
Tax clearance certificate for the latest FY 2081/82
Copy of audit report for the previous FY 2080/81
Copy of the citizenship certificate of the authorized representative of the firm, company or industry
Evidence or self-declaration that innovation and technology are being used in the enterprise
Copy of the statement of annual wages/salaries of the industry/employees for the latest fiscal year
You must submit a self-declaration confirming that no concessional loan, startup enterprise loan, or similar concessional loan has been taken from:
The Government of Nepal
Any provincial government
Any local level authority
If you are already enjoying another concessional loan of a similar type from government entities, you cannot claim this facility.
You can submit your project proposal online (electronically) or offline (physically). The same official format must be used in both cases.
Visit https://iedi.gov.np
Download the project proposal format from the website
Fill the form electronically in the prescribed format
Submit your proposal online as instructed on the site
Download the same proposal format from iedi.gov.np
Print and fill it clearly
Attach all the required documents listed above
Submit the hard copy at the IEDI office, Tripureshwor, Kathmandu during office hours
Proposals (online or offline) must be submitted within office hours
On the last submission day, the form must be submitted by 5:00 PM
Proposals received after office closing time on the last day will not be accepted
Practically, this means you should aim to submit a few days before the deadline, not at the last minute.
Visit https://iedi.gov.np
Download the project proposal format from the website
Fill the form electronically in the prescribed format
Submit your proposal online as instructed on the site
Download the same proposal format from iedi.gov.np
Print and fill it clearly
Attach all the required documents listed above
Submit the hard copy at the IEDI office, Tripureshwor, Kathmandu during office hours
Proposals (online or offline) must be submitted within office hours
On the last submission day, the form must be submitted by 5:00 PM
Proposals received after office closing time on the last day will not be accepted
Practically, this means you should aim to submit a few days before the deadline, not at the last minute.
All updates related to this loan program are published only on the official IEDI website:
There, you’ll find:
The preliminary shortlist of projects
The list of projects selected for presentation
The final selection of startups
If you’re applying, you should regularly check the website for new notices, clarifications and results.
For more detailed legal and procedural information, you can refer to the Startup Enterprise Loan Operation Procedure, 2082 (including amendments) available through official channels.
The IEDI Startup Enterprise Loan is a valuable opportunity for Nepali founders who are building innovative, technology-oriented businesses with real growth potential.
But approval depends on:
Meeting strict eligibility and sector criteria
Having proper registration, records, and documents
Submitting a clear, realistic and well-structured project proposal
Following the correct procedure and deadlines
If you want support to understand the numbers, sharpen your idea, and prepare a stronger proposal, consider learning with Khatapreneur Startup School.
Reading a notice is one step.
Building a clear, fundable startup and a solid project proposal is another.
That’s where Khatapreneur Startup School comes in.
At Khatapreneur Startup School, we help every aspiring entrepreneur and founder in Nepal learn how to start, manage, and grow a real business — the right way.
Our program is designed to give you the complete foundation of entrepreneurship, divided into 7 powerful modules that cover everything a startup needs from idea to execution.
Module 1: Starting Up, you’ll learn how to discover business ideas, validate them, build your business model, understand your market, and create a strong vision and mission for your startup.
Module 2: Make It Legal helps you make your business official — from company registration, PAN and VAT setup, and compliance to trademarks, agreements, and all the legal essentials every founder should know.
Once you’re legally ready,
Module 3: Startup Accounting teaches you how to manage your finances, record transactions, handle payroll, and understand financial statements so you always stay in control of your business numbers.
Module 4: Startup Taxation, you’ll learn about Nepal’s taxation system, including income tax, TDS, VAT, audit, and available tax incentives helping you stay compliant while saving costs smartly.
Module 5: Managing Finances focuses on how to fund and grow your business — from startup costs and budgeting to loans, investments, grants, valuation, and financial forecasting.
Module 6: Marketing Practicals, where you’ll master branding, social media, digital marketing, paid ads, SEO, and real marketing case studies that show how to attract and retain customers.
And finally, Module 7: Management Practicals prepares you to become a true leader — covering time management, human resource handling, operations, strategy, and performance management to run your startup effectively.
From a Founder to a Founder | Mentor: CA Bipin Lamsal
From a Founder to a Founder |
Mentor: CA Bipin Lamsal