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:
- Offer Letter/I-20/Fee Structure/Acceptance Letter or substantiating documents issued from concerned Educational Institutions (Universities or Colleges).
- No objection letter (NOC) from Ministry of Education to study abroad at the time of loan disbursement.
- Copy of Passport of student and dependent (if any).
- Copy of Academic Documents duly notarized.
- Property/Collateral Related Documents
- Copy of PAN/Citizenships of borrower and Guarantor (Citizenship only) including photographs.
- Income sources proof and related documents.
- Any other documents as applicable on case to case basis.
Steps to get Educational loan in Nepal to study Abroad:
- Contact Loan Manager/Relationship Manager of the Bank through your nearest branch with above mentioned documents.
- Branch will conduct field visit, property valuation and CICL Inquiry from the Credit Information Bureau (CIB).
- Branch will analyze the valuation report and Income source report whether such report meets repayment criteria or not.
- On satisfaction, Branch shall send educational loan proposal for approval to its respective approving officers and the loan gets approved.
- On approval, Collateral/property mortgage shall be done by branch and client through nearest Land Revenue Office (i.e. Malpot office).
- The Branch shall execute loan documents (Legal documents) with borrower and its guarantor.
- The Branch shall forward disbursement request to its Head Office.
- On request, Bank also provide the certificate regarding the educational loan it provides.
Charges and Fees payment to the Bank:
- Admin Fee/Service Charge: 0.75% of the Loan Limit (As per general banking practice in Nepal and may vary)
- CICL Charges- Rs. 550 per Person (Applicable to Borrower and Guarantors)
- 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 |
| Facility | Term Loan (Generally) |
| Moratorium | 6 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. |
| Tenure | Minimum 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.
Can I use the old valuation report or need to do valuation again for same property.
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.