Complete Procedures to get Education Loan in Nepal to study abroad:

Education Loan is one of the most sought for loan in today’s context. An Education loan,
to pay for the high tuition fees and other associated costs, has become a need for an ambitious student. Many Nepalese commercial banks are providing this facility. Here is a complete guidelines to get education loan in Nepal to Study Abroad:

Documents Required Before Processing for Educational Loan:

  1. Offer Letter/I-20/Fee Structure/Acceptance Letter or substantiating documents issued from concerned Educational Institutions (Universities or Colleges).
  2. No objection letter (NOC) from Ministry of Education to study abroad at the time of loan disbursement.
  3. Copy of Passport of student and dependent (if any).
  4. Copy of Academic Documents duly notarized.
  5. Property/Collateral Related Documents
  6. Copy of PAN/Citizenships of borrower and Guarantor (Citizenship only) including photographs.
  7. Income sources proof and related documents.
  8. Any other documents as applicable on case to case basis.

Steps to get Educational loan in Nepal to study Abroad:

  1. Contact Loan Manager/Relationship Manager of the Bank through your nearest branch with above mentioned documents.
  2. Branch will conduct field visit, property valuation and CICL Inquiry from the Credit Information Bureau (CIB).
  3. Branch will analyze the valuation report and Income source report whether such report meets repayment criteria or not.
  4. On satisfaction, Branch shall send educational loan proposal for approval to its respective approving officers and the loan gets approved.
  5. On approval, Collateral/property mortgage shall be done by branch and client through nearest Land Revenue Office (i.e. Malpot office).
  6. The Branch shall execute loan documents (Legal documents) with borrower and its guarantor.
  7. The Branch shall forward disbursement request to its Head Office.
  8. On request, Bank also provide the certificate regarding the educational loan it provides.

 Charges and Fees payment to the Bank:

  1. Admin Fee/Service Charge: 0.75% of the Loan Limit (As per general banking practice in Nepal and may vary)
  2. CICL Charges- Rs. 550 per Person (Applicable to Borrower and Guarantors)
  3. Property valuation charge paid to respective Valuator/Engineer (0.1% of Valued amount if Valued amount is greater than 50 lakhs and 0.2% of Valued amount if less than 50 Lakhs).

Interest Rate:

Base Rate + 4% (May Vary as per Bank)

(Note: Base rate is calculated every month and vary with bank. The average industry base rate on Chaitra, 2079 is 10.5%).

Other Important Points to be noted:

Subject Particulars
FacilityTerm Loan (Generally)
Moratorium6 months to 12 months (May vary as per bank)
Loan to Value Ratio (LTV)In case of Land and Building: Maximum up to 80% of Fair Market Value (FMV) derived by the valuator assigned by the Bank.
In case of Fixed Deposit: Maximum up to 90% of principal amount of the FD (of Student/Family Members/Close Relatives) in concerned Bank.
Debt Burden Ratio (DBR)Depends upon the Bank Policy.
TenureMinimum 1 Year to 20 Years (Generally)
Average duration for disbursement.5 days to 15 days

Frequently Asked Questions:

What is the procedures to obtain education loan for Australia in Nepal?

Ans: Education loan for Australia in Nepal can be obtained in the same process as mentioned in this page.

What is education loan interest rate in Nepal?

Ans: Interest rate is (Base rate + up to 4.5% spread) as per general banking practice in Nepal.

The information on this website is for general informational purposes only. Sincere efforts have been made to avoid mistake, error or omission.


    • Old valuation report up to 2 years can be used but the valuator providing valuation report shall be listed/approved by the institution providing loan. It completely depend on loan providing bank or financial institution whether the valuator/old valuation report can be considered for providing loan or not. Generally, banks assigned their own listed valuator for valuation purpose.

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