Siddhartha Bank Introduces Women-Focused Loan Scheme to Expand Access to Finance for Entrepreneurs

Kathmandu — Siddhartha Bank Limited has launched a new lending product aimed at strengthening women-led micro, small, and medium enterprises (MSMEs), reflecting the growing focus of Nepal’s banking sector on inclusive financing.

The newly introduced “Siddhartha Mahila Samriddhi Loan” is designed to provide easier financial access to women entrepreneurs who are seeking capital to expand their businesses. The bank said the scheme focuses on reducing barriers that often prevent women-led businesses from obtaining formal credit.

Under the new facility, women entrepreneurs can access loans based on their business requirements and financial capacity. The scheme provides up to Rs 1.5 million in collateral-free loans, up to Rs 2.5 million against partial collateral, and up to Rs 5 million against full collateral security.

The introduction of the scheme comes at a time when access to finance remains one of the major challenges for small business owners, particularly those who lack sufficient physical assets to offer as collateral. By creating different lending categories, the bank aims to support entrepreneurs at different stages of business development.

To improve the loan evaluation process, Siddhartha Bank has developed a specialized scorecard-based assessment system with technical assistance from the International Finance Corporation (IFC). Unlike traditional lending practices that heavily depend on collateral, the new system will evaluate broader business factors, including operational experience, financial condition, cash flow management, and the entrepreneur’s overall business capability.

Banking experts view such initiatives as an important step toward expanding financial inclusion. Many small entrepreneurs have viable business ideas but struggle to access institutional financing due to limited assets or lack of traditional banking history.

Through this initiative, Siddhartha Bank aims to shift the focus from only asset-based lending toward a more business-potential-based approach. The bank believes that supporting women entrepreneurs can contribute to employment generation, local economic activity, and stronger participation of women in Nepal’s enterprise sector.

The new loan product also reflects a wider trend in the financial sector, where banks are increasingly developing targeted lending programmes for specific groups and industries rather than relying only on conventional credit products.

However, the long-term impact of such schemes will depend on effective implementation, transparent evaluation, and the ability of entrepreneurs to use financing productively. If successfully executed, the programme could become a significant support mechanism for women-led businesses seeking sustainable growth.