KATHMANDU: Start-up businesses in Nepal are set to receive start-up loans beginning from the second week of Jestha.

The Industrial Enterprise Development Institute has announced that selected businesses, chosen based on their presentations, will commence receiving loans during this period.

Currently, the Institute is in the process of evaluating 394 shortlisted applicants, with the final list of loan recipients expected to be publicized by May 28.

Out of the 1,658 applicants, 394 have been shortlisted for the loan process.

The government plans to provide loans of up to Rs 2.5 million to these start-ups, with commercial banks offering an annual interest rate of three percent.

The disbursement will occur in one installment for loans up to Rs 500,000, two installments for Rs 1,500,000, and three installments for Rs 2,500,000.

Additionally, the government has introduced several supportive measures to encourage the growth of start-up businesses.

These include free renewal of business registration and other associated services, as well as policy facilitation to attract foreign direct investment in this sector.

Furthermore, a challenge fund worth Rs 1 billion has been established to further support start-up initiatives.

Various sectors are eligible for start-up business loans, ranging from agriculture and livestock to renewable energies and climate change initiatives.

This initiative aims to foster entrepreneurship and innovation across diverse sectors, driving economic growth and creating employment opportunities in Nepal.