The Koshi Province government has introduced the Udaya Guarantee Fund and Udaya Challenge Fund to support small and medium enterprises (SMEs) by providing loan guarantees to banks and financial institutions. The initiative aims to enhance SME access to capital, fostering business growth and employment opportunities.
The funds were inaugurated by Damodar Bhandari, Minister for Industry, Commerce, and Supplies; Ram Bahadur Magar, Minister for Economic Affairs and Planning, Koshi Province; and Danielle Meuwly, Swiss Ambassador to Nepal.
Laying emphasis on the importance of SMEs, Bhandari said, "Lack of collateral has long hindered SME growth. This initiative will set an example for federal and provincial governments in empowering small businesses."
Ambassador Meuwly praised the effort, saying, "The Udaya Funds mark a shift toward sustainable economic transformation, aligning with Switzerland’s goal of trade-based growth in Nepal."
With a NPR 600 million joint investment from Koshi Province and Swiss Development Cooperation, the funds will provide partial loan guarantees, encouraging banks to lend to SMEs while reducing risks. The project aims to benefit over 3,000 SMEs in its first phase.
The Udaya Project, backed by the governments of Nepal and Switzerland, focuses on SME development through financial support, business consulting, and digital access.
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