A total of 922 startups have received concessional loans worth Rs 1.057 billion under the government’s startup financing scheme.
According to the Industrial Enterprise Development Institute (IEDI) under the Ministry of Industry, Commerce and Supplies, the 922 projects were selected from 966 projects that reached the final assessment stage. The government had initially shortlisted 1,301 projects from among the applicants.
Under the Startup Loan Facilitation Scheme, eligible startups can obtain collateral-free loans at a concessional interest rate of 3 percent, with individual startups eligible for loans ranging from Rs 500,000 to Rs 2 million.
The scheme is part of the government’s 39-point “Immediate Reform Work Plan for Promotion of Effective Public Service 2025,” which aims to accelerate startup financing and simplify the loan process.
A total of 10,244 startups applied for the loans announced in November 2025. Of them, 2,041 submitted proposals physically, while 8,203 applied online.
Startups registered within the past 10 years and having an annual turnover of up to Rs 150 million were eligible to apply.
In FY 2023/24, the government allocated Rs 250 million for the program, benefiting 165 startups. In the previous fiscal year, 600 projects were selected, with Rs 1 billion allocated, of which Rs 886.60 million had been disbursed, according to the IEDI.
The institute said the program has helped connect emerging business ideas with financial resources while supporting the development and expansion of technology- and innovation-based enterprises.
