Nepal, June 20 -- Nepal has set aside Rs730 million for startup loans with a concessional 3 percent interest rate, reinforcing subsidised credit as the government's focus in the budget for fiscal year 2025-26. This scheme provides collateral-free loans ranging from Rs200,000 to Rs2 million, focusing on facilitating skill development and business growth, particularly for Gen Z entrepreneurs. This marks a notable departure in the policy as the startup loan initiative now operates more formally. It offers concessional loans and standardised disbursement processes, an improvement from previous years, where delays and bureaucratic inefficiencies had usually plagued such funding.

Unlike previous approaches, the present budget relies on loans a...