Kathmandu: A tripartite agreement was signed today among the Industrial and Business Development Foundation, Nepal National Commercial Bank, and the Deposit and Credit Guarantee Fund to facilitate startup loans.
The agreement was formalized in the presence of Minister for Industry, Commerce, and Supplies Damodar Bhandari at the Ministry. Representing the Deposit and Credit Guarantee Fund, Executive Director Ramesh Ghimire signed the agreement alongside Devendra Raman Khanal, CEO of Nepal National Commercial Bank, and Umesh Gupta, Executive Director of the Industrial and Business Development Foundation.
Minister Bhandari highlighted the government’s plan to encourage and effectively promote startup ventures through increased loan facilitation.
Ghimire noted that the Deposit and Credit Guarantee Fund has established special provisions for protecting startup loans. He emphasized the need for a collaborative approach among all levels of government to support and work with startup entrepreneurs.
Gupta revealed that a budget of NPR 1 billion has been allocated for startup ventures. He confirmed that the agreement aims to streamline the loan provision and protection mechanisms for startups.
Khanal, CEO of Nepal National Commercial Bank, shared that the bank had provided loans to 183 startups in the past year. He reiterated the bank’s commitment to utilizing its extensive national network to support loan distribution across the country.
Under the new arrangement, startup entrepreneurs can access loans up to NPR 2.5 million. Loans will be offered at a 3% interest rate, with a maximum repayment period of five years. Repayment of the loan or interest must begin within one year of receiving the first installment.