The objectives of TDF includes:
the improvement of basic infrastructure and delivery of public and institutional services in the urban areas through the provision of long term financing for priority social infrastructure and revenue generating projects;
strengthening the technical, managerial and financial capability of the municipalities for identification, implementation and evaluation of urban development projects as well as promoting of institutions related to urban development.
The improvement of financial and managerial capacities of other institutions emerging in urban sectors and aiming for social development through the provision of long term financing.
The objectives as said above are very much relevant in view of the need for providing financial and technical support to the municipalities in the form of loans and grants. However, its objectives and Act permits for doing much more other activities and extending assistance to other emerging urban centers in Nepal not only limiting to the municipality