The government has allocated Rs 730 million in subsidised loans to support startups in the upcoming fiscal year 2025/26, Finance Minister Bishnu Paudel announced during the presentation of the annual budget on Wednesday.

The loan scheme will be offered at a concessional interest rate of just 3 percent and is aimed at encouraging innovation and entrepreneurship, particularly among the Gen-Z demographic.

Minister Paudel stated that startups based on innovation and emerging technologies will be prioritised for this support. “This initiative is designed to foster a dynamic entrepreneurial ecosystem and help new businesses scale up with easier access to finance,” he said.

The concessional loan is expected to provide a significant boost to Nepal’s startup landscape, which has struggled with limited access to capital and financial institutions in the early stages of business development.