CREDIT
Access to Finance
Government Backed
SCHEMES
Subsidized loans for startups
SCOPE
- All companies defined as start-ups
STATUS
- Working Procedures being framed
Subsidy for Incentivizing export of Ghee and Powder Milk
SCOPE
- Companies involved in production of Ghee and Powdered Milk. A total of Npr 10 million has been allocated to the project and a company is eligible to receive upto 75 percent of its investment cost.
STATUS
- Working Procedures framed, program rolled out
Subsidy scheme for Industries manufacturing goods using local materials
SCOPE
- Gandaki government will provide subsidy for purchase of equipments to be used in industries manufacturing goods using local materials. 50 percent of the total value of machinery or NPR 500,000, whichever is less will be provided based on evaluations of the proposals received.
STATUS
- Working Procedures framed and program rolled out.
Training program for financial literacy
SCOPE
- A total of NPR 3.6 million has been allocated for the implementation of a training program designed to impart knowledge about banking processes and loan processes.
STATUS
- Working Procedures framed and program rolled out.
Startup loan scheme
SCOPE
STATUS
Subsidy scheme for Industries manufacturing goods using local materials
SCOPE
- Gandaki government will provide susbsidy for purchase of equipmnts to be used in industries manufacturing goods using local materials. 50 percent of the total value of machinery or NPR 500,000, whichever is less will be provided based on evaluations of the proposals received.
STATUS
- Working Procedures framed and program rolled out.
Training program for financial literacy
SCOPE
- A total of NPR 3.6 million has been allocated for the implementation of a training program designed to impart knowledge about banking proceses and loan processes.
STATUS
- Working Procedures framed and program rolled out.
Startup loan scheme
SCOPE
- A total of NPR 3.6 million has been allocated for the implementation of a training program designed to impart knowledge about banking proceses and loan processes.
STATUS
- Working Procedures framed and program rolled out.
Deprived Sector Lending Program
Deprived Sector Lending
It means loans disbursed for the operation of a micro-enterprise that aims to uplift “low-income population, Dalits, Indigenous population, differently-abled population, small farmer, landless citizens and women”.
All banks and financial institutions must disburse 5 per cent of their total loans to the deprived sector.
Classification
- Loans up to NPR 200000 per family disbursed for the purchase of solar home systems, solar cookers, solar dryers, solar pumps, biogas, improved water mill and improved cookstoves;
- Micro Enterprise loans up to NPR 500000;
- Loans up to NPR 100000 disbursed to migrant labour;
- Loans up to NPR 300000 disbursed to families that produce raw materials used in manufacturing carpets;
- Loans up to NPR 400000 disbursed to families or farmer cooperatives for the construction of cold storage, irrigation facilities, tubewell, purchase of seeds and pesticides
- Loans disbursed to farmer cooperatives in rural areas for the construction of irrigation canals, purchase of tractors, threshers, and other agro-equipments;
- Loans up to 50 per cent of the project value disbursed to cooperatives or enterprises undertaking rural electrification ventures;
- Loans up to NPR 500000 disbursed to small farmers’ associations for the construction of cold storage facilities;
- Loans up to NPR 10000000 disbursed to cooperatives for post-harvest services;
Banking Statistics
This section provides some key statistics related to Banking in Nepal. The statistics are published monthly by the Nepal Rastra Bank and offers rich information on the nature of deposits, loanable funds and financial access through number of ATMs and use of mobile banking facilities
| wdt_ID | Fiscal Year | Mid-Month | Number of Branches | Number of Deposit Accounts | Number of Loan Accounts | Mobile Banking Customers | Internet Banking Customers | Number of ATMs | Number of Debit Cards |
|---|---|---|---|---|---|---|---|---|---|
| 1 | 2016/17 | August | 2,896 | 16,836,017 | 1,096,570 | 1,754,566 | 515,465 | 1,908 | 4,657,125 |
| 2 | 2016/17 | September | 2,896 | 16,836,017 | 1,096,570 | 1,754,566 | 515,465 | 1,908 | 4,657,125 |
| 3 | 2016/17 | October | 2,903 | 17,519,287 | 1,101,240 | 1,924,946 | 534,372 | 1,938 | 4,671,227 |
| 4 | 2016/17 | November | 2,903 | 17,519,287 | 1,101,240 | 1,924,946 | 534,372 | 1,938 | 4,671,227 |
| 5 | 2016/17 | December | 2,949 | 17,519,287 | 1,101,240 | 1,754,566 | 515,465 | 1,938 | 4,671,227 |
| 6 | 2016/17 | January | 2,979 | 18,206,724 | 1,156,841 | 2,236,074 | 564,128 | 1,985 | 4,848,053 |
| 7 | 2016/17 | February | 2,994 | 18,206,724 | 1,156,841 | 2,236,074 | 564,128 | 1,985 | 4,848,053 |
| 8 | 2016/17 | March | 3,003 | 18,206,724 | 1,156,841 | 2,236,074 | 564,128 | 1,985 | 4,848,053 |
| 9 | 2016/17 | April | 3,023 | 18,843,605 | 1,183,632 | 2,426,681 | 734,924 | 2,047 | 4,848,053 |
| 10 | 2016/17 | May | 3,069 | 18,843,605 | 1,183,632 | 2,426,681 | 734,924 | 2,047 | 4,848,053 |
Startup Loan Working Procedure
Classification
- Enterprises based on agriculture, irrigation and horticulture
- Manufacturing enterprise
- Enterprise based on forest (herbs and forest resources)
- Enterprise related to tourism and hospitality
- Enterprises based on Science, Technology, Communication and Information Technology
- Enterprises related to Human health
- Enterprises related to education and teaching
- Enterprises related to transportation
- Enterprises related to construction of infrastructure
- Enterprises related to E-Vehicles
- Enterprises related to traditional and rural technology
- Enterprises based and local resources
- Enterprises related to public service delivery
- Enterprises related to research and development of mines and minerals
- Enterprises related to improving domestic and daily affairs
- Enterprises related to goods and services distribution mechanism
- Enterprises related to revival of traditional occupation and enterprises
- Enterprises related to food technology
- Enterprises related to waste management
Eligibility Criteria
- Registered and in operation for no more than 10 years,
- Registered with the office responsible for registering either a Private firm, Partnership Firm, Company or Cooperative,
- Not having an annual turnover of more than NPR 150,000,000 in any financial year since its registration,
- Not having formed through a merger or demerger,
- Having the potential for high growth by utilizing innovative and creative ideas into entrepreneurial ventures,
- Having registered as an industry,
- Not involved in sale through imports of goods and services
- Not blacklisted in accordance with the prevailing law,
- Having registered after the date on which on the Industrial Enterprise Development Institute invites proposals for loans,
- Not registered as a Holding or Investment company.
Evaluation metric
| S.N. | Basis of evaluation | Marks |
| 1 | Present condition of enterprise or innovative ideas | 10 |
| 2 | Use of technology | 5 |
| 3 | The industry’s turnover for the previous fiscal year | 5 |
| 4 | Market potential for selling goods or services produced by the project | 15 |
| 5 | Source of direct raw materials used in the project (any one) | 10 |
| 6 | Availability of necessary infrastructure for the project (Buildings and land, roads, communications, drinking water, electricity and other infrastructure as required by the nature of the industry as per the project) | 10 |
| 7 | Measures adopted for risk management | 10 |
| 8 | Presentation of business proposals and job creation | 15 |
| 9 | Credit Appraisal | 20 |
| Total | 100 |
POPULATION PER BANK BRANCH
PROVINCE WISE
Comparable Statistics
This section provides some comparable statistics related to access to finance. Users can compare Nepal and other South Asian Countries on matters related to financial access. The figures are based on the latest round of Enterprise Survey and Latest Round of B-READY survey.
| Year | |
| Average/SE/N | Average |
| Percent of firms that are fully credit constrained | 14.7 |
| Percent of firms that are partially credit constrained | 17.6 |
| Percent of firms with a bank loan/line of credit | 27.2 |
| Proportion of loans requiring collateral (%) | 76.8 |
| [B-READY] Percent of firms reporting unfavorable rates, collateral, or procedures as main reason for not applying for loans | 27.7 |
| Percent of firms not needing a loan | 54 |
| [B-READY] Days to receive a decision on loan application | 29 |
| Percent of firms whose recent loan application was rejected | 19 |
| Percent of firms using banks to finance investments | 23.8 |
| Proportion of investment financed internally (%) | 69 |
| Percent of firms using banks to finance working capital | 23.7 |
| Proportion of working capital financed by banks (%) | 10.6 |
| [B-READY] Proportion of sales paid by customers electronically | 36.2 |
| [B-READY] Days to receive the main type of electronic payment | 1.1 |
| [B-READY] Cost to receive main type of electronic payment (% of transaction) | 0.4 |
| [B-READY] Proportion of payments made electronically | 26.6 |
| [B-READY] Cost to make main type of electronic payment (% of transaction) | 0.5 |
| Percent of firms identifying access to finance as a major or very severe constraint | 21.1 |
| [B-READY] Perceptions index of access to finance as a constraint | 65.9 |
| Year | 2022 |
| Average/SE/N | Average |
| Percent of firms that are fully credit constrained | 8 |
| Percent of firms that are partially credit constrained | 22.1 |
| Percent of firms with a bank loan/line of credit | 42.5 |
| Proportion of loans requiring collateral (%) | 72.2 |
| [B-READY] Percent of firms reporting unfavorable rates, collateral, or procedures as main reason for not applying for loans | 15.8 |
| Percent of firms not needing a loan | 53.2 |
| [B-READY] Days to receive a decision on loan application | 30.4 |
| Percent of firms whose recent loan application was rejected | 12.1 |
| Percent of firms using banks to finance investments | 18.8 |
| Proportion of investment financed internally (%) | 77.8 |
| Percent of firms using banks to finance working capital | 38.7 |
| Proportion of working capital financed by banks (%) | 19.5 |
| [B-READY] Proportion of sales paid by customers electronically | 12.6 |
| [B-READY] Days to receive the main type of electronic payment | 1.2 |
| [B-READY] Cost to receive main type of electronic payment (% of transaction) | 0.6 |
| [B-READY] Proportion of payments made electronically | 3.2 |
| [B-READY] Cost to make main type of electronic payment (% of transaction) | 0.1 |
| Percent of firms identifying access to finance as a major or very severe constraint | 9.5 |
| [B-READY] Perceptions index of access to finance as a constraint | 82.1 |
| Year | 2022 |
| Average/SE/N | Average |
| Percent of firms that are fully credit constrained | 9.3 |
| Percent of firms that are partially credit constrained | 17.8 |
| Percent of firms with a bank loan/line of credit | 11.2 |
| Proportion of loans requiring collateral (%) | 74.2 |
| [B-READY] Percent of firms reporting unfavorable rates, collateral, or procedures as main reason for not applying for loans | 27 |
| Percent of firms not needing a loan | 61.6 |
| [B-READY] Days to receive a decision on loan application | |
| Percent of firms whose recent loan application was rejected | 25 |
| Percent of firms using banks to finance investments | 56.1 |
| Proportion of investment financed internally (%) | 58.4 |
| Percent of firms using banks to finance working capital | 33.9 |
| Proportion of working capital financed by banks (%) | 12.2 |
| [B-READY] Proportion of sales paid by customers electronically | |
| [B-READY] Days to receive the main type of electronic payment | |
| [B-READY] Cost to receive main type of electronic payment (% of transaction) | |
| [B-READY] Proportion of payments made electronically | |
| [B-READY] Cost to make main type of electronic payment (% of transaction) | |
| Percent of firms identifying access to finance as a major or very severe constraint | 13.7 |
| [B-READY] Perceptions index of access to finance as a constraint | 73.6 |
| Year | 2023 |
| Average/SE/N | Average |
| Percent of firms that are fully credit constrained | 11.5 |
| Percent of firms that are partially credit constrained | 26.7 |
| Percent of firms with a bank loan/line of credit | 57.8 |
| Proportion of loans requiring collateral (%) | 96.4 |
| [B-READY] Percent of firms reporting unfavorable rates, collateral, or procedures as main reason for not applying for loans | 31.7 |
| Percent of firms not needing a loan | 40.6 |
| [B-READY] Days to receive a decision on loan application | 41.3 |
| Percent of firms whose recent loan application was rejected | 6.6 |
| Percent of firms using banks to finance investments | 33.4 |
| Proportion of investment financed internally (%) | 71.1 |
| Percent of firms using banks to finance working capital | 39.6 |
| Proportion of working capital financed by banks (%) | 17.9 |
| [B-READY] Proportion of sales paid by customers electronically | 23.3 |
| [B-READY] Days to receive the main type of electronic payment | 0 |
| [B-READY] Cost to receive main type of electronic payment (% of transaction) | 0 |
| [B-READY] Proportion of payments made electronically | 9.6 |
| [B-READY] Cost to make main type of electronic payment (% of transaction) | 1.1 |
| Percent of firms identifying access to finance as a major or very severe constraint | 25.4 |
| [B-READY] Perceptions index of access to finance as a constraint | 61 |
| Year | 2022 |
| Average/SE/N | Average |
| Percent of firms that are fully credit constrained | 40.9 |
| Percent of firms that are partially credit constrained | 15.2 |
| Percent of firms with a bank loan/line of credit | 2.1 |
| Proportion of loans requiring collateral (%) | 47.1 |
| [B-READY] Percent of firms reporting unfavorable rates, collateral, or procedures as main reason for not applying for loans | 38.2 |
| Percent of firms not needing a loan | 43.5 |
| [B-READY] Days to receive a decision on loan application | |
| Percent of firms whose recent loan application was rejected | 35.3 |
| Percent of firms using banks to finance investments | 5.5 |
| Proportion of investment financed internally (%) | 67.3 |
| Percent of firms using banks to finance working capital | 3.5 |
| Proportion of working capital financed by banks (%) | 0.8 |
| [B-READY] Proportion of sales paid by customers electronically | 27.1 |
| [B-READY] Days to receive the main type of electronic payment | 3.1 |
| [B-READY] Cost to receive main type of electronic payment (% of transaction) | 0.8 |
| [B-READY] Proportion of payments made electronically | 21.7 |
| [B-READY] Cost to make main type of electronic payment (% of transaction) | 0.8 |
| Percent of firms identifying access to finance as a major or very severe constraint | 12.7 |
| [B-READY] Perceptions index of access to finance as a constraint | 67.7 |
| Year | 2011 |
| Average/SE/N | Average |
| Percent of firms that are fully credit constrained | |
| Percent of firms that are partially credit constrained | |
| Percent of firms with a bank loan/line of credit | 40.4 |
| Proportion of loans requiring collateral (%) | 79.2 |
| [B-READY] Percent of firms reporting unfavorable rates, collateral, or procedures as main reason for not applying for loans | 50 |
| Percent of firms not needing a loan | 25.1 |
| [B-READY] Days to receive a decision on loan application | |
| Percent of firms whose recent loan application was rejected | 8.5 |
| Percent of firms using banks to finance investments | 43.6 |
| Proportion of investment financed internally (%) | 53.5 |
| Percent of firms using banks to finance working capital | 40.6 |
| Proportion of working capital financed by banks (%) | 18.3 |
| [B-READY] Proportion of sales paid by customers electronically | |
| [B-READY] Days to receive the main type of electronic payment | |
| [B-READY] Cost to receive main type of electronic payment (% of transaction) | |
| [B-READY] Proportion of payments made electronically | |
| [B-READY] Cost to make main type of electronic payment (% of transaction) | |
| Percent of firms identifying access to finance as a major or very severe constraint | 30.2 |
| [B-READY] Perceptions index of access to finance as a constraint | 59.8 |
| Year | 2024 |
| Average/SE/N | Average |
| Percent of firms that are fully credit constrained | 3.8 |
| Percent of firms that are partially credit constrained | 6.3 |
| Percent of firms with a bank loan/line of credit | 44.3 |
| Proportion of loans requiring collateral (%) | 100 |
| [B-READY] Percent of firms reporting unfavorable rates, collateral, or procedures as main reason for not applying for loans | 4.8 |
| Percent of firms not needing a loan | 80.3 |
| [B-READY] Days to receive a decision on loan application | 23.3 |
| Percent of firms whose recent loan application was rejected | 0 |
| Percent of firms using banks to finance investments | 26.9 |
| Proportion of investment financed internally (%) | 55 |
| Percent of firms using banks to finance working capital | 22.7 |
| Proportion of working capital financed by banks (%) | 11.8 |
| [B-READY] Proportion of sales paid by customers electronically | 81.9 |
| [B-READY] Days to receive the main type of electronic payment | 0 |
| [B-READY] Cost to receive main type of electronic payment (% of transaction) | 0 |
| [B-READY] Proportion of payments made electronically | 72.1 |
| [B-READY] Cost to make main type of electronic payment (% of transaction) | 0.1 |
| Percent of firms identifying access to finance as a major or very severe constraint | 18 |
| [B-READY] Perceptions index of access to finance as a constraint | 69.3 |
| Year | |
| Average/SE/N | |
| Percent of firms that are fully credit constrained | |
| Percent of firms that are partially credit constrained | |
| Percent of firms with a bank loan/line of credit | |
| Proportion of loans requiring collateral (%) | |
| [B-READY] Percent of firms reporting unfavorable rates, collateral, or procedures as main reason for not applying for loans | |
| Percent of firms not needing a loan | |
| [B-READY] Days to receive a decision on loan application | |
| Percent of firms whose recent loan application was rejected | |
| Percent of firms using banks to finance investments | |
| Proportion of investment financed internally (%) | |
| Percent of firms using banks to finance working capital | |
| Proportion of working capital financed by banks (%) | |
| [B-READY] Proportion of sales paid by customers electronically | |
| [B-READY] Days to receive the main type of electronic payment | |
| [B-READY] Cost to receive main type of electronic payment (% of transaction) | |
| [B-READY] Proportion of payments made electronically | |
| [B-READY] Cost to make main type of electronic payment (% of transaction) | |
| Percent of firms identifying access to finance as a major or very severe constraint | |
| [B-READY] Perceptions index of access to finance as a constraint |
Year
2024
Average/SE/N
Average
Percent of firms that are fully credit constrained
3.8
Percent of firms that are partially credit constrained
6.3
Percent of firms with a bank loan/line of credit
44.3
Proportion of loans requiring collateral (%)
100
[B-READY] Percent of firms reporting unfavorable rates, collateral, or procedures as main reason for not applying for loans
4.8
Percent of firms not needing a loan
80.3
[B-READY] Days to receive a decision on loan application
23.3
Percent of firms whose recent loan application was rejected
0
Percent of firms using banks to finance investments
26.9
Proportion of investment financed internally (%)
55
Percent of firms using banks to finance working capital
22.7
Proportion of working capital financed by banks (%)
11.8
[B-READY] Proportion of sales paid by customers electronically
81.9
[B-READY] Days to receive the main type of electronic payment
[B-READY] Cost to receive main type of electronic payment (% of transaction)
[B-READY] Proportion of payments made electronically
72.1
[B-READY] Cost to make main type of electronic payment (% of transaction)
0.1
Percent of firms identifying access to finance as a major or very severe constraint
18
[B-READY] Perceptions index of access to finance as a constraint
69.3