About the FUND About the FUND

About the FUND

The COVID-19 MSME Fund Nepal was launched in October 2020 with the objective of supporting pandemic impacted MSMEs through a) interest/ collateral free loan to meet their working capital needs and b) technical assistance in the form of business development services. Leveraging grant support from Swiss Agency for Development and Cooperation SDC and FMO – the Dutch Entrepreneurial Development Bank, this blended finance program has enabled our Partner Banks – Laxmi Bank, NMB Bank and Nabil Bank, to lend off their own balance sheet. In addition to this, the fund is also providing business advisory/ development service to help the beneficiaries improve their managerial and operational capabilities.

COVID-19 MSME Fund

Application Closed
 

Stories

Sara Enterprises: Exemplary Thangka Paintings
Thangka is a Buddhist painting that depicts a Buddhist god, famous scene, or mandala. Thangkas carry great significance for Nepal. Legend has it that Thangkas were exported to Tibet by princess Bhrikuti of Nepal who was married to Sron Tsan Gampo, the then ruler of Tibet.
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Salaka Krishi Tatha Center: Building Dreams at Home
Ang Phurba Sherpa, like thousands of youths in the country, went to Israel in search of better opportunities in 2006. After working as a supervisor on a farm for 8 years, he returned to Nepal with a strong ambition to establish his own business.
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Sabita Kapada Udhyog: Empowering Women
Sabita Singh was only 17 when she got married and started her journey in the garment industry by joining her mother-in-law at Champa Kapada Udhyog. She worked for 28 years and along the way acquired key technical and business skills. Later, she decided to start her own company and established Sabita Kapada Udhyog in 2016.
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Cera Nepal Udhyog: Staying Resilient Through Difficult Times
Cera Nepal Udhyog is one of the oldest ceramic manufacturers in Nepal, carrying forward the legacy and tradition of pottery making in Nepal.
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Saraswati Food Industries: Adding taste to your food
Spices (Masala) are an integral part of any region’s food culture and it’s the combination of spices that brings out distinct flavors and aromas.
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Chaos to Structure- Redefining waste collection
Waste Concern is a pioneer in commercial waste management in Nepal and through its robust waste collection services, the company aims to combat unsystematic waste management in Kathmandu at low costs
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Back to nature – carving sustainable solutions
Leaf Plus, an idea that sparked during a nostalgic conversation about “tapari momo” in an alumni reunion meet turned into a business enterprise that spearheaded
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Innovative Alchis – Changing Nepal’s Design Landscape
Kazi’s venture into creating a variety of games, keeping Nepal’s culture and history at its center, came as a breath of fresh air in a market where local board games were almost non-existent.
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Scrumptious Nepali Treats
Surav Food has been operating out of a small factory located in Thecho, Latipur. The company ensures that they use locally sourced and fresh ingredients
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Connecting Farmers to Customers
Kheti, a flagship product of DV Excellus, is leading this effort in the Agri ecosystem through a comprehensive end-to-end platform. Through their data-driven digital marketplace
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Brewed in Nepal
Coffee might seem like the new trend in a culture where all conversations happen over a cup of tea (!चया) especially in this part of the world.
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Durga Bags – A story of sheer resilience and dedication
What started as a small factory with two employees is now a full-fledged factory in Chamati; Swayambhu; currently employing 35 employees...
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Empowering the Blue Collar Workforce
“The Covid Fund by One to Watch came about at the perfect time. We at Sajilo Marmat Sewa are thankful not only for the support but for the sessions that we have been provided which has helped us immensely”
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Waste into Resource
urrently manages more than 70 tons of e-waste annually addressing the lack of legislation and adequate technology in the country to process such waste. The paramount goal of Doko is enable a sustainable future by turning waste into resources by investing in environmentally-sound solutions for processing waste.
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Women Empowerment Through Felting
What started off as “Friends Handicraft” in 2001 with ten working women, Nuptse Craft, run by Shanti Shrestha and her daughter, Keepa Shrestha, now employees more than 70 women.
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Sturdy Yet Comfortable
Established more than 36 years ago by Surendra Dahal, Leather Wings is a pioneer in manufacturing high-quality genuine leather footwear, for both men and women, which are sturdy yet equally comfortable.
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More Than Just a Place to Eat
Unlike most enterprises, EVOKE shares its grounds with other independent creative outfits that align with the ethos of the cafe.
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Modern-day Baby Clothing
Kokroma, which means “in a cot”, is bringing back Nepali traditions pertaining to baby care with fabrics that are designed to mirror modern-day tastes.
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Home Away From Home
Naman Care Home, along with its medical amenities, also touts its commitment to its residents’ non-medical needs and desire to age with dignity.
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Guilt-Free Summer Delights
In search for healthier alternatives to sugary frozen snacks with artificial flavoring, the duo set out to create health-friendly ice lollies that did not make them feel guilty for craving something refreshing in a scorching day.
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Tradition And Technology
One cannot think of Thimi, a municipality in Bhaktapur District, without thinking about pottery. Thimi takes its name from the Newari phrase for “capable people”—fitting for a town that is a major hub for pottery making. The Prajapatis of the Newar community have been making pottery
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Women Demonstrate Resilience By Pivoting To Face Masks
Two months into the pandemic, Cotton Mill realized the need of the hour and transitioned from its regular production i.e., manufacturing textiles for households and started to manufacture sustainable cotton masks.
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More Than Just Capital
Healthy Smiles, since 2000, has been providing top-notch dental services through its two clinics in Lazimpat and Sanepa. With the vision to provide “The Best in Dental Care”, it has amassed a robust repeat customer base..
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The Lives We Touch
COVID-19 and the subsequent lockdowns left a trail of economic desolation in Nepal. As the economic activities came to a halt for months, small and medium enterprises (SMEs) were hit...
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Smart Tech’s Pivot: Empowering Businesses To Go Online
It’s hard to imagine IT companies struggling with remote working as news columns are filled with Big Tech companies mobilizing their HR from home but it was an uphill task ..
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COVID-19 Silver Lining: Rise of Platform-based Businesses
The advent of FinTech era in Nepal can be imputed to the successful launch of eSewa in 2009, a mobile wallet that aimed to digitally solve the issue of utility...
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Whatever It Takes
The story of Cotton Mill is one of resilience and empowerment. Founded in 2010 by two Basnet sisters – Prasanna and Priyanka, Cotton Mill aspired to become....
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FAQs

Interest/Collateral-Free Loans for SMEs General FAQs

We are looking for businesses with:

  • At least 2 years of operational history in Nepal
  • At least 10 direct employees
  • Audited financial statements for the past two years
  • Innovative and sector-disruptive business model
  • Vision to scale
  • Passionate entrepreneurs

We are sector agnostic – open to all. We highly encourage you to apply if you meet the aforementioned qualifications.

No, our partner banks will provide the loan after they do their own due diligence on the applications shortlisted by OTW.

  • Audited statements of the past two years
  • Fully tax complaint

The loan size can range from NPR 1 to 2 million.

The loan is interest/collateral free for a maximum period of 18 months (duration of the Fund).

It is a short-term working capital loan for a period of 12-18 months. Interest/collateral free provision will end in 18 months at most. After this period, you will have to adhere to the standard requirements of the assigned bank to continue the relationship.

The terms and conditions of the loan are determined by the bank that will be providing the loan.

The timeline on the sanctioning of the loans is dependent on the submission of required documents/information by the applicant. Banks are expected to provide a decision on a loan application within a week.

You are receiving phone calls from OTW to make sure all the information you submitted are accurate. We also already screened your application before calling you. That way we can ask you any additional information about your business in the phone call.

OTW will send the shortlisted applications to one or more of the partner banks. Based on their review of your application, you may receive a call from the partner bank where after you may be required to visit their branch for loan processing.

Based on the OTW’s and partner bank’s internal due diligence, applications of a final set of eligible MSMEs will be approved and the loans will be disbursed.

If your profile fits into our overall objective, OTW will forward your application to our partner bank(s). If the bank wishes to consider granting you a loan, the bank will then contact you for their due diligence process.

All fees and charges payable to the bank, wherever applicable, are to be borne by the applicant. OTW does not charge a fee at any point.

One to Watch will review all approved loan recipients to assess the need for business development services. If deemed appropriate, services will be provided to the loan recipient. We expect 4 out of 10 to receive business development support.

We will cater our BDS according to the needs of your business in the including but not limited to the following areas:

  • Financial Planning
  • Sales and Marketing
  • Restructure Business Model
  • Operation Management
  • HR Management
  • Strategic Management

No, loan recipients of the COVID Fund who qualify for BDS do not have to pay for the services.