Rs 730 Million Earmarked for Concessional Loans to Startups

In a bid to foster youth-led innovation and entrepreneurship, the government has allocated Rs 730 million in the fiscal year 2025/26 to provide concessional loans to startups.

Unveiling the budget in a joint session of the Federal Parliament, Finance Minister Bishnu Paudel announced that startups will be able to access loans at an interest rate of 3 percent. The initiative is aimed at promoting an entrepreneurial culture among young innovators, particularly those from Generation Z. 

The government will prioritize innovation-driven startups, with a focus on sectors that offer scalable and impactful solutions. To further support early-stage ventures, the budget also includes plans to establish incubation centers across the country. “These will help guide and empower Gen Z youth to turn their ideas into viable businesses,” said Paudel.