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Education Loan

Eligibility, documentation.

Education Loan is extended to students or sponsor of the student to enroll for higher study abroad or within Nepal.

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Along with the Education Loan application you will have to provide certain documents to allow us to process your loan at the earliest. Here is the list of documents required for processing Education Loan.

A. Identification Documentation

• Photograph and copy of citizenship of the applicant/sponsor/guarantor
• Copy of Individual PAN certificate (where applicable)
• Map of the applicants’/sponsor’s/guarantor’s residence
• Net worth statement of applicant/guarantor/sponsor
• Multiple Banking document
• Account in NMB Bank Ltd. 

B. Income related documents

• For salaried individuals

• Salary certificate from the employed organization/company (Not older than 3 months).

• Bank Statement for minimum 6 months, as applicable.

• Latest two salary slips (if any).

• Tax paid documents

• For self-employed professionals

• Certificate of registered professional.

• Detail of income source/ profession.

• Proof of last 3 years of continuous practice (if any).

• Tax Paid documents

• For business person

• Latest audited financial statement as per prevailing Company/Tax Act of Nepal.

• Certificate of Incorporation (in case of organization)

• Valid Firm/Company registration certificate.

• MOA/AOA, Share Lagat, partnership deed (as applicable)

• Recent tax paid receipt documents

• For other sources

• Latest lease payment receipt or agreements, title deed of property. Future rental income will not be considered.

• Other rental income details. If the asset generating rental income is under loan from other financial institution, the Bank must take into consideration the residual income from such asset.

• Pension slip, interest received statement etc.

• Other verifiable income.

C. Collateral related documents

• Land ownership certificate

• Blueprint/Cadastral Map / trace map

• Four boundary certificate (Char Killa)

• Land Classification Document

• Naksaa Pass, Building construction permission certificate from competent authority, construction completion certificate ( as applicable ) (in case of building available)

• Collateral transfer deed (for recently purchased property) (rajinama)

• latest revenue receipt of land or land or/and building offered as collateral

Note: In case of Pre-approved Home Loan Collateral documentation to be obtained after approval of limit.

• Financing Amount:  upto 70% of the Fair Market Value of the collateral security as valued by the Bank’s approved value.
•  Up to 100 percent of the cost of education including traveling cost (for abroad) and accommodation (for abroad).
•  Up to 100 percent of the cost of tuition fee for study within Nepal
• Tenure: Maximum up to 15 years.
• Repayment Method:  EMI.

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Study abroad

Procedures for obtaining educational loans for nepalese students.

• Posted by Edwise Foundation
• Categories Study abroad
• Date August 3, 2023

A whopping number of more than 125,000 Nepali students went abroad in 2022, a stat revealed by ICEF Monitor, suggesting the growing interest among students to consider abroad for their better study, the most popular being Australia, Japan, India, and the United States.

Have you ever thought about what might be the challenging aspect to consider while choosing a foreign as your study destination?

The answer could be different based on individuals like loneliness, cultural differences, different lifestyles, and so on. One answer stands common among all and that is financial challenge.

To ease such hurdles, there are some options available for the student such as scholarships (discussed in the previous blog), securing educational loans, and so on.

Here, we discuss the procedure needed to secure educational loans and ease the pathway to study abroad.

Obtain the Offer Letter:

First thing first. If you are thinking about studying abroad , the first task to do is to obtain an offer letter.

To receive an offer letter from the universities, we need to apply for admission and the documents needed for this are generally transcripts, English proficiency scores, test results (SAT/GRE and so on), Resume, Work Experience, Passport, Application fees, and so on.

Once the application is placed, the admission committee reviews the documents and usually decides within 7 days to 1 month (depending on universities, processing time might change) after receiving all the required documents.

NOC (No Objection Certificate):

Now you have your offer letter in hand. The next important task you need to do is to make NOC.

This is a government-issued certificate and you can visit https://noc.moest.gov.np/ and follow the instructions (usually required to sign up in the portal, upload the documents such as transcripts, and so on) to receive this.

After the verification is done, the students need to pay the fees through either the online portal (esewa) or Rastriya Banijya Bank and must appear in front of an officer with an original transcript at Nepal Education Board (NEB).

After the final verification is done, NOC will be available online to download.

Understanding the Cost:

It is crucial to understand the amount of loans students need to study. The minimum amount corresponds to the total tuition fee for one year along with living expenses that will incur during this period of stay.

Note that the living expenses vary greatly according to the country and the city where the university is located.

So, it is advisable to research the living expenses and know about the tentative loan amount needed. The loan amount will have direct consequences on your visa.

Therefore, consider this section with utmost care, or in case of any confusion, you can reach our experts.

Appointment at any ‘A’ class Bank:

Now the most important task begins. The student along with their parents should make appointments with the branch manager/loan officer of a nearby bank to discuss the possibilities of educational loans.

You must take your offer letter with you to initiate the process. The educational loan requires collateral from the student’s sponsors (usually parents) and the collateral could be any valuable properties (such as land and buildings) deemed suitable by the bank.

After agreeing upon suitable collateral with the loan officer, the bank will verify the worth of it usually by hiring the engineers. The Certified Engineers will visit the site and evaluate the worth of those properties.

Please keep in mind, the cost incurred during this field visit should be paid by the applicant himself. Depending upon the bank, disbursement can be made ranging from 40% to 80% of the total valuation made by the engineers.

Mortgage deed:

Now we know the amount that bank is willing to give us as a loan, the bank requires the applicant (parents who are the owner of that collateral) to sign the terms and conditions of the mortgage, including the amount of loan, the interest rate, repayment schedule, and other relevant terms.

This legal document (called a Mortgage deed) is registered with the government authority (Land Revenue Office) and this document protects the rights of both the borrower and the lender.

Sanction letter:

After signing the agreement, the Bank will finally issue a sanction letter where the details of the student (name of the university, course name, student ID number) along with sponsors (details of collateral kept for obtaining a loan) are mentioned.

Other relevant terms and conditions are also mentioned in the sanction letter. This is an important document that is assessed by a visa officer and therefore, the student must look at the minor details such as name, address, student ID, etc. on it.

Disbursement Letter:

This letter is issued by the bank, once the sanctioned loan amount is disbursed into the applicant’s bank account. But, remember not all countries require the disbursement letter for this visa lodgement.

So, before disbursement, we strongly suggest knowing the visa requirements of respective nations or consult our experts.

Bank Statement:

This is bank issued letter that shows the transactions conducted by the applicant with the amount and purpose. Once the loan is disbursed, the applicant can ask for the bank statement to show any necessary transactions conducted by him.

In general, if the tuition fees are paid by the disbursed amount, then this document might be highly relevant for visa officers. Again, this is country-specific, and therefore make an informed decision before obtaining a bank statement.

There are costs associated with obtaining an educational loan from ‘A’ certified Bank in Nepal.

It is difficult to generalize the exact amount but the cost is mostly incurred during valuation by Engineers, the Interest rate of the Bank, the Service fee of the Bank, and any administrative costs depending on the bank.

Kindly Note: Every bank has its own loan departments and interest rates. So, to understand the particular processes and costs associated with the bank, kindly visit nearby branches with appointments and discuss the potentiality of securing the loan.

Also, not every bank follows the same procedure and therefore, makes the decision only after visiting the banks.

Edwise Foundation is your dedicated abroad education partner. We are more than an education consultancy; we're your route to international education. We have a long history of guiding ambitious young minds. Our extensive experience in counseling abroad studies and smooth application processing makes it easier for students to achieve their academic goals. f i y t n

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How to Apply and Get Education Loan in Nepal?

Satchit Ghimire

The college tuition fees have been rising at an alarming pace for the past two decades in Nepal making students difficult to pay their educational fees. So, many students are considering education loans to cover their various expenses incurred while pursuing their college degree. 

What is an education loan?

The education loan is a type of loan that is borrowed to cover education-related expenses. The expenses may include tuition fees, fees, library, laboratory and hostel charges, travel expenses for studies abroad, and so on. This type of loan is specially designed to help students financially in affording the cost of education. 

Here in this blog, we have written the process that you need to follow to apply for an education loan in Nepal.

Step 1: Know the Basic Requirements:

1. Who can apply for an education loan?

Students who have completed their 10+2 level education are eligible for an education loan. The education loan is generally provided to the students for professional and higher studies. The eligibility for the loan also depends upon the annual income, academics, potential future earnings, cosigner, and collateral. 

The eligibility criteria vary according to the Banks. But generally considers the following factors for providing educational loans:

• Nationality (The applicant must be a Nepali citizen).
• Confirmation of admission from the respective education institution.
• A creditworthy cosigner (generally parents/ guardian/ spouse) having a regular source of income for repayment of installments.
• Age (The applicant must be 18 years of age).
• Collateral security or FD equivalent.

2. What does the education loan cover?

Generally, education loan covers most of the expenses incurred while pursuing education. The expenses include tuition fees, fees, library, laboratory and hostel charge, travel expenses for studies abroad and so on. 

3. What are the eligible courses and institutes?

For education loan, the student must be studying Undergraduate/Bachelors, Graduate/Masters & above, or any professional courses in any institution recognized by the Government of Nepal.

Step 2: Visit the Banks and Gather the related information:

1. How much money can you borrow? 

The total amount of money that you can borrow varies among the banks depending upon the course that you are pursuing and the regular income of the student’s parents/guardian to service interest. 

2. W hat is the cost for the loan?

The cost of educational/student loans depends upon the interest rate, loan margin, loan processing fees, subsidies, grace period, term period, and moratorium period. Students should find out the amount as well as the total cost of the loan at the time of reimbursement before opting for an education loan.

3. What is the repayment module?

In education loans, the repayment should have to be done through Equated Monthly Installments (EMIs) that commences after the completion of the course.

There is a special provision of the moratorium period in education loans. The  moratorium  is the time in which and after the loan amount has been disbursed to the borrower and the borrower is not required to make any repayment. However,  interest  accrues during the  moratorium period  and the borrower must pay it.

4. What are the terms and conditions of the loan?

If you are applying for a loan make sure you understand each term and conditions of the loan. If you are confused about any terms and conditions don't hesitate to ask the loan officer. Make sure you know the details like the total loan cost, monthly payments, fees, whether the interest rate is fixed or may vary as per the market, collateral, and security, loan amount, etc.

5. Compare the related parameters:

Before applying for the education loans students are highly recommended to compare the education loan on different parameters. The parameters are the interest rate, things that the education loan covers (like tuition fee, library fee, etc.), interest rate, loan processing fees, subsidies, grace period, term period, loan processing time, moratorium period and so on.

Step 3: Do the necessary paperwork

1. Find the cosigner:  

Students must have a trustworthy co-signer to apply for an education loan in Nepal. Cosigning is a responsible commitment. If the borrower fails to pay the loan then the cosigner is legally obliged to pay the education loan.

2. Verify the Security/Collateral:

Collateral is movable or non-movable property pledged as security for repayment of a loan, to be forfeited in the event of a default. Commercial banks of Nepal provide educational loans against fixed assets collateral and/or fixed deposits. The collateral/security can be land, building, securities & bonds, gold, and fixed deposits.

3. Submit the necessary documents:

As the supportive documents required for the education loan varies among banks as per their own rules and regulations, so it is always advised to check the list of the documents required with the respective bank and/or visit the nearest branch for further information.

Generally, Commercial Banks of Nepal require the following documents for loan processing.

• Duly filled loan application form.
• Original education certificates/mark sheets.
• Proof of admission to the course or offer letter.
• Schedule of expenses for the course.
• Net worth statement of parents as applicable.
• Income statement or cash flow details of the cosigner.
• Copies of citizenship/passport of the students and their parents/guardian/guarantor along with pp sized photographs.
• Bank (deposit & loan) account statement of 6 months time interval.
• Details regarding the assets and liabilities of parents.

Step 4: Disbursal of the loan

Once the process and paper works are complete, then the banks will disburse the loan. As loans are not free money and every penny you borrow from banks will cost you more amount at the time of repay. So, we suggest you spend the money wisely. 

Many colleges in Nepal also offer attractive scholarships to the needy and deserving students. Many of these scholarships go unclaimed every year. We would also like to recommend you to reach out to the colleges, ask them if they have provisions of scholarships and apply wherever possible. 

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Documentation Requirements: Loan Application Process in Nepal

Obtaining a loan is a significant financial decision that many of us will face at some point in our lives. Whether you are looking to fund a new business venture, invest in a property , or meet personal financial goals, understanding the eligibility criteria and documentation requirements is essential for a smooth loan application process

Eligibility Criteria

The first step in securing a loan is to ensure that you meet the lender’s eligibility criteria. In Nepal, these criteria typically include:

Nepalese Citizenship: You must be a Nepalese citizen to apply for a loan in the country.

Age Requirement: You should be at least 18 years old at the time of loan origination.

Employment Status: You can be either a salaried individual or self-employed. This broad eligibility criterion accommodates a wide range of borrowers.

Documentation Requirements

Once you meet the eligibility criteria, the next step is to gather the necessary documentation to support your loan application. The required documents can be categorized into three main groups:

1. Identification Related Documents:

• Personal identification documents of the borrower and guarantors.
• Photographs of both the borrower and guarantor.
• Family details from the local authority.
• If your income is derived from a business, you may need to provide firm registration certificates, PAN/VAT certificates, and partnership deeds.

2. Collateral Related Documents:

• Land ownership certificate to prove ownership of the collateral property.
• Land revenue receipts for the property in question.
• Various land-related documents, such as Rajinama/Bakaspatra/Anshabanda papers and ward and file maps of the collateral property.
• Detailed descriptions of the property boundaries (charkilla).
• If you plan to construct a building, you will need approved house maps and construction permits.
• Additional documents related to the construction process, such as Nirman Sampanna/abhilekhikaran papers.

3. Income Related Documents:

• For salaried individuals, you’ll need salary certificates and bank statements.
• Appointment letters or employment contracts are also required for those with salaried jobs.
• If you derive income from renting property, include your rental agreement along with tenant identification.
• Pension Patta is necessary if your income source is a pension.
• Business owners should prepare audited financial statements from the previous year and projections for the coming year.
• Tax clearance certificates or receipts should be included to validate your income.
• If your income comes from foreign sources, you’ll need additional documentation, such as your passport, visa, salary certificates, contract papers, salary receipts, and documents related to remittances to Nepal.
• For loans of Rs. 50 lakh and above, your PAN card is required.

Navigating the loan application process in Nepal may seem daunting, but with a clear understanding of the eligibility criteria and the required documentation, you can streamline the process and increase your chances of loan approval. Remember to consult with your chosen lender for any specific or additional requirements they may have, as requirements can vary from one institution to another.

Applying for a loan is a significant financial commitment, and it’s crucial to be well-prepared and informed throughout the process. By meeting the eligibility criteria and providing the necessary documents, you can embark on your financial journey with confidence, whether it’s for personal goals, business expansion, or property investment in the enchanting landscapes of Nepal.

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Education Loan

Thinking Of Pursuing Higher Education ?

If you're thinking about pursuing higher studies abroad or even some professional/technical courses in Nepal, fret not, you've come to just the right place!

Kumari Education Loan Features 

• Financing up to 90% of estimated cost
• Up to 100% of valuation of property
• Tenure up to 25 years
• Flexible repayment options

Documentation Checklist 

• Loan Application
• I20/Offer letter of College/University
• Citizenship of applicant and family member
• Passport copy of applicant
• College/University Details
• Income documents and others as required by the Bank
• Collateral related documents
• No Objection Letter (at the time of tuition fee payment)

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Education Loan in Nepal: Current Scenario, Eligibility and Process

Along with the rising everyday expenses, the cost of pursuing education in Nepal has also increased significantly. Nowadays, educational expenditure have become a festering financial burden for every family.

So, along with the knowledge and hard work, Nepali students are obliged to have financial support to pursue a course of their choice and secure a great education.

Apart from financial burden, lack of quality education, limited employment opportunities, a high degree of political instability and disrupted socio-economic conditions due to earthquakes have shown disastrous on the Nepali education system .

These factors have eventually impacted the students and incited them to migrate to foreign countries for pursuing a proper educational career, even though the abroad studies are anchored with a high cost of living and hefty migration expenses.

Now, Nepal is one of the top nations with the majority student population studying abroad and the number is increasing year on year. India, Australia, the United States and the United Kingdom are the preferred destinations for the Nepali students.

Major Destination Countries of Nepali Students (2018-19)

Nepali student Migration in Numbers:

• According to the report by International Organization for Migration (IOM), 84,700 Nepalis were studying abroad in 2016.
• The number of Nepali students in the US and Australia has increased by 20% and 60% in 2016-17, respectively.
• A total of 31,157 Nepalis were issued student visas in Australia in the year 2017-18.
• In 2018-19, the Nepali Government has issued 63,259 “No Objection Certificates”, according to Ministry of Education, Science and Technology (MOEST).

In the recent decade, the student migration in Nepal has experienced a sharp rise with a nearly six-fold increase in the FY 2018-19.

Let’s have a look at the rise in Nepali student migration in the last 10 years

Even though the outbound student mobility from Nepal is incessantly increasing at a high rate, many students hadn’t obtained education loans to fund their education and other expenses.

This is mainly because the educational loans in Nepal require collateral, complex documentation procedures and high-interest rates.

In view of this, the Nepali Government banks and other financial institutions have eased the education loan process and provided competitive schemes for Nepali students for a better educational career.

Education Loan in Nepal – How it Helps?

Education loan in Nepal is financial support for the students aspiring for higher studies in Nepal as well as abroad. The purpose of the loan is meant to cover all expenses incurred during the completion of a course. It includes:

• College/school/hostel expenses
• Examination and library expenses
• Cost of computers, books, and other aids necessary for completion of the course
• Travel expenses
• Health insurance

Apart from covering the educational expenses, education loan offers many benefits. A few of them are:

• Lower Interest Rate
• Flexible Payment Terms
• Flexible Loan Options
• Easy Repayment options
• Tax Benefits

However, to avail the aforementioned benefits of education loan in Nepal, the applicants must meet certain criteria and accept a few terms and conditions set by the loan provider.

If you are looking to know how to apply for an education loan in Nepal to pursue further studies in the nation or in abroad, here are few key takeaways about the loan application, approval and related services.

Eligibility:

• The applicant must be a Nepali citizen
• The applicant must have at least 10+2 level education qualification
• The applicant must have a confirmation of admission from the respective education institution
• The applicant’s parents/guardian/spouse must have a regular income for repayment of installments
• The applicant must be at least 18 years old
• The applicant must have collateral security or fixed deposits

Eligible Courses: Nepali banks provide educational loans for almost any course provided that the concerned educational institute is recognized by Nepali Government.  The eligible courses include:

• Undergraduate/Bachelors & above
• Graduate/Masters & above
• Any Professional Courses (graduate and above)

Required Documents: Supportive documents required for the educational loan approval in Nepal include:

Note: Documents listed above are just some of the banks’ requirement and the list may vary as per their rules and regulations.

There are many banks in Nepal that provide educational loans to aspiring students. But, it’s imperative for the students to compare the study loan on various parameters, terms and conditions.

Also Read: Foreign Currency Exchange Rates in Nepal

The applicant should make sure to understand details like total loan cost, monthly installments, interest rate, loan processing fees, subsidies, grace period, term period, loan processing time, repayment scheme, moratorium period and so on.

So, the students are obliged to look into several banks and do some research regarding the application process.

Let’s have a look at some of the prominent banks that offer study loans in Nepal:

1) Bank of Kathmandu:

Loan Amount:

• Minimum: NPR 150,000/-
• Maximum: NPR 10,000,000/-

Financing %:

• Up to 90% of institute and accommodation expenses. In case, if the student is looking for MBBS/MD courses in Nepal, then the amount can be up to 100% of the total tuition fees. However, the amount should not cross 90% of the total cost of the course.
• In addition, the loan will not be allowed above NPR 1,000,000/- for other expenses such as travel, books and computer.

Tenure: Up to 10 years (Exclusive of moratorium period of 12 months) Repayment: EMI based Interest Rate: Base Rate + 0.50 to 6.00

2) Citizens Bank Limited

• Loan Amount : Maximum up to NPR 5 million.
• Loan Portion : Up to 100% of the cost of education but not above 80% of the Distress Value of collateral security
• Tenure: Maximum of 15 years including moratorium period
• Repayment: Terminating loan payable in EMI

3) Everest Bank Limited

• Loan Amount: The amount of loan will be approved as per the costs incurred during the course and expected earnings after the course.
• Disbursement: Loan is disbursed as a term loan. The annual limit will be calculated based on the costs incurred during the course within the overall limit and the disbursement is made accordingly.
• Security: Collateral security or fixed deposit equivalent to 100% of the loan amount acceptable to the Bank.

Note: Students who are applying educational loan for MBBS/BDS studies in Nepal can avail “Sanjivani Education loan Scheme” provided by the bank.

4) Civil Bank

• Tenure: Up to 10 years (including a grace period of up to 3 years)
• Repayment: EMI Based

5) Nepal Investment Bank Limited

• Tenure: Maximum up to 10 years
• Repayment: EMI based

Fees and Charges:

• Unscheduled payment: 1.5% of the payment amount.
• Management fee: 0.50% of the loan amount or NPR 5,000 (whichever is higher)
• CIC Charge: on actual basis

6) Machhapuchchree Bank Limited

Loan Amount-

• Minimum: NPR 200,000/-
• Maximum: NPR 6,000,000/-

Financing %: Up to 70% of Fair Market Value of real estate collateral or 80% of total education expenses. Tenure: Maximum 12 years (including 2 years moratorium period) Loan processing fee: 1% of the loan amount Repayment: EMI based

7) Nabil Bank Limited

• Loan Amount: Up to NPR 10 million
• Financing %: Study loan is also available up to 90% of the principal amount of the deposits
• Tenure: Up to 15 years
• Moratorium period: Maximum 4 years or course duration whichever is earlier

8) Nepal SBI Bank Limited

• Loan Amount: Maximum up to NPR 80 Lakhs
• Moratorium Period: Maximum period of 5 years or 3 months after the completion of course designated (whichever is earlier).
• Tenure: Maximum up to 10 years after the moratorium period
• Repayment : EMI based
• Security: Land and building having a value of at least 110.00% of the loan amount or up to 95% of the Fixed Deposit/Government securities

9) NMB Bank Limited

• Loan Amount: Up to 70% of the Fair Market Value of the collateral security as valued by the Bank’s approved value.
• Financing ratio: Up to 90%
• Repayment:  EMI based

10) Laxmi Bank

• Loan Amount: Maximum of NPR 7 million
• Financing %: 75% of FMV of the property or 95% of the value of Fixed Deposit or Government Bond
• Loan Tenure: 15 years

11) Prabhu Bank Limited

Loan Amount :

• Minimum: NPR 100,000/-
• Maximum: NPR 5 Million/-

Financing %:  Up to 90% of the Distress Value subject to the maximum loan limit Tenure: Maximum of 15 years Loan Fee: Management Fee of 1% of the sanctioned loan amount Repayment: EMI based

12) Sanima Bank Limited

• Loan Amount: Maximum up to NPR 10 million
• Tenure: Up to 15 Years (including moratorium period)
• Service Charge: 1% on the approved loan limit

13) Siddhartha Bank Limited

• Loan Amount: Maximum up to 80% of the total expenses to be incurred for the proposed study
• Tenure: Maximum up to 10 years (In case of Term Loan including moratorium period)
• Security: Land and building with at least a 40% margin or mortgage of land

14) Standard Chartered Bank Limited

• Minimum: NPR 1 million
• Maximum: Up to NPR 10 million

Tenure: Minimum 1 year and maximum up to 10 years Moratorium Period: Up to a maximum of 3 years or course duration (Whichever is earlier) Repayment: EMI basis after the moratorium period

Other leading banks include:

• Himalayan Bank Limited
• Mega Bank Limited
• Kumari Bank Limited
• Prime Bank Limited

Note: Before reaching out for the banks for an education loan application, check if you can apply it online so that you can save much of your time.

Many times, banks are willing to offer a loan amount higher than what you need. But, you may not need to accept the entire loan amount since you have to pay back the loan with interest. So, it is ideal to borrow what you need.

Before choosing an education loan, it’s imperative for the Nepali students to check whether any form of scholarship is available for them or not. Because, many colleges in Nepal are offering merit-based, need-based, as well as extracurricular scholarships.

So, it is highly recommended to find whether you are eligible for any scholarships and apply wherever possible.

Stay tuned to NepaliSansar.com for more latest education news updates !

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Education Loan

An education loan is financial assistance provided by banks or financial institutions to students who need help covering the costs of their education View More

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Siddhartha Bank

Floating Rate - 11.18%

Fixed Rate – 10.75% for upto 5 Year(s)

Processing Fee - Up to 0.75%

Loan Tenure 1 - 15 Years

Global IME Bank

Floating Rate - 11.27%

Fixed Rate – 11.99% - 12.99% for upto 5 Year(s)

Loan Tenure 5 - 5 Years

Everest Bank Ltd.

Floating Rate - 8.79% - 10.79%

Fixed Rate – 11.99% for upto 7 Year(s)

Loan Tenure 0 - 7 Years

Common features of Education Loans

• Education loans are simplified and flexible student loans for higher studies.
• The education loan facilitates higher education financial requirements in Nepal or abroad.
• Simple documentation process, quick disbursal, and longer repayment tenure.
• Quick approval and transparent loan processing.
• Loan size covering the entire education fee and living expenses.

 Eligibility Criteria 

• Borrowers and guarantors should be Nepalese citizens.
• Age of applicant/co-applicant should be a minimum 18 years.
• The applicant must have at least 10+2 level education qualification.
• Sufficient income source of a guarantor to repay at the satisfaction of the Bank.
• Should have at least 8 ft wide motorable access to proposed land/building.
• The plot should be free from Guthi and/or Mohi.
• Third-party collateral is not acceptable  

Documents Required for Education Loan

Security/collateral.

• Land Ownership Certificate (Lalpurja)
• Rajinama or Bakaspatra or Ansha-banda
• Malpot Receipt
• Tax clearance of building
• Blue Print and trace map
• Char Killa Pramanit
• Approved house map (if applicable)
• Nirman Sampanna Patra/Abhilekhikaran (Building Completion certificate), if applicable
• Ghar Kayam in Lalpurja in case of existence of the house

Income Source

• Salary certificate
• Rental agreement (If any) along with tenant’s identification
• Audited financials of last 2 fiscal years (For business income)
• Pension document
• Copy of renewed/valid blue book of the vehicle along with route permit (If income is from the commercial vehicle)
• Salary certificate, work permit, valid passport with visa, payslip, and bank account statement (If income is from foreign employment)
• Valid tax paid receipts/tax clearance certificates for justifying income (where ever applicable)

Other Documents 

• Photograph (2 copies each)
• Citizenship and/or Passport
• Offer Letter/I-20 from Education Institutions (Colleges/Universities) Course of Enrollment (CoE) Letter from Education Institutions (Colleges/Universities) (In case of Visa Extension)
• No Objection Certificate from Ministry of Education (MoE) Location Map (Residence & Office)
• Relationship Certificate
• Marriage Certificate(If required)
• Bank (deposit & loan) account statement of at least 6 months
• Firm/Company Registration Certificate(If source of income is business)
• PAN/VAT Certificate

Education Loan Common Fees & Charges

• Loan Processing Fee: Banks charge a fee for processing the loan application and disbursing the funds. This fee is typically a percentage of the loan amount.
• Administrative Fees: Banks may assess administrative fees to cover the cost of managing and servicing the loan.
• Late Payment Fees: If you miss a scheduled payment, the Banks may charge a late payment fee. It's crucial to make payments on time to avoid these charges.
• Prepayment Penalty: Some loans have penalties for paying off the loan before the agreed-upon term. Check if your loan has a prepayment penalty and factor it into your decision-making.

Common use of Education Loan in Nepal 

• Tuition Fees : Education loans are often used to cover tuition fees for undergraduate and postgraduate courses. This includes fees for academic programs at universities and colleges.
• Accommodation and Living Expenses : Education loans can be used to cover the cost of accommodation, whether it's on-campus housing or off-campus rental expenses. This includes rent, utilities, and other living expenses.
• Books and Study Materials: The cost of textbooks, reference materials, and other study-related materials can be significant. Education loans help students afford the necessary resources for their academic programs.
• Exam Fees: Education loans may also cover examination fees for standardized tests or professional certification exams required for certain courses.
• Travel Expenses: For students studying abroad, education loans can cover travel expenses, including airfare, visa fees, and other transportation costs.
• Miscellaneous Expenses: Education loans are versatile and can be used to cover various miscellaneous expenses, such as research costs, conference fees, or other academic-related expenditures.

Education Loan Do's and Don't table

Related Blogs

2024 Foreign Exchange Limits for Nepali Students: What You Need to Know

How to Apply for an Education Loan in Nepal ?

7 Essential Factors to Consider Before Taking an Education Loan in Nepal

शैक्षिक कर्जा बारे आम मानिसको बुझाई र त्यसबारे उहाँहरुका अवधारणा

1. How to start processing Education Loan?

In almost all banks of Nepal, they ask for offer letter/fee structure from the college/university you’re applying to. So, you need either offer letter/fee structure to apply for Education Loan.

2. Who is eligible for an education loan?

Every bank has its own set of eligibility requirements for education loans, but a few common parameters are:

• Applicant should be a Nepali national.
• Minimum 18 years (at the time of application) and a maximum of 70 years at the time of maturity.
• Applicant should have confirmed admission in a college/educational institution at the time the loan application is made.
• The Applicant should have a co-borrower such as a parent who acts as guarantor for the loan

 ** This may vary from banks to banks.

3. What are the expenses covered by education loans?

• Tuition fees, admission fee and hostel expenses
• Exam, library, and lab fees if applicable
• Any refundable caution deposits paid to the educational institute
• Cost of books, uniforms, and other essentials for completion of course
• Travel expenses (return fare for international flights.
• Medical insurance expense and donation.

** This may vary from banks to banks.

Please provide us your information to further support.

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Personal Banking (Loans)

Prabhu Education Loan

Prabhu Education loan has been designed to meet the aspirations of students for completion of their studies both in and out of the country. Prabhu education loan scheme provides loan for those students who demonstrate ability, drive and ambition but do not have the financial resources to pursue higher studies.

Related Products

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Personal Loan

NIC ASIA Personal Loan is a non-collateral based loan scheme specially designed to facilitate your diverse personal financial requirements if you are a Nepalese Salaried individual, Pensioners, professionals residing in Nepal.

A personal loan is purely based on your credibility as our valued customer and offers to hassle-free services along with the fastest service delivery and easy documentation procedure.Get flexible loan tenures, easy loan repayment options, and most importantly as per Published Interest Rate of the Bank.

Facility/Product Type

Non-Collateral Based

To support your financial expenses.

Facility Type

Term Loan and Overdraft/ Demand Loan

Eligibility Criteria:

Only Nepalese Residential with Salaried Income, Pensioners and professionals residing in Nepal.

• Minimum Age : 23 Years at the time of loan processing.
• Maximum :  Remaining service tenure or 58 Years at loan maturity, whichever is earlier. However, in case of loan against pension income the maximum age of borrower shall be 68 years at the time of loan application.

Loan Amount

• Minimum: For Loan against Pension Income, NPR 100K For others, NPR 300K
• Maximum: Up to NPR. 15 Lakh, where Overdraft/Demand Loan shall be within NPR. 5 Lakh. In case of loan against pension income: Up to NPR 5 Lakh.

Maximum Loan Tenure

For Loan against Pension Income: Up to 1 year

• Term Loan  : Up to 7 Years.
• Overdraft/ Demand Loan  : 12 months. Renewal shall be done subject to satisfactory annual review and clearance.

Interest Rate

As per Published Rate

Fees and Charges

As per Standard Tariff of Charges (STC).

* Note: Other Terms and Conditions shall be as per the Bank’s Policy. In addition, to the above-mentioned parameters, the Bank can analyze other details too, where deemed necessary.

Required Documents

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eSewa launches loan service: Up to 2 Lakh without paperwork

Online payment giant eSewa has launched its in-app loan facility becoming Nepal’s first digital wallet to do so. The service lets users get up to a maximum of Rs 2 lakh in loans instantly without any collateral and paperwork. This service is brought in collaboration with Kumari Bank, Foneloan, and is called “Easy Loan”. Find out the steps to apply, eligibility, interest, charging fees, etc.

The service arriving in phases will be available to eSewa agents at first . However, the company’s Chief Executive Officer (CEO) Jagdish Khadka states that the service will soon be available to other users such as regular smartphone users and merchants in the near future.

He also extended gratitude to all the users, merchants, and agents for their continuous support and assured them that the company will continue to bring more innovative facilities and services in the coming days.

Check out: How to take loan in Ntc? | Sapati Process

Being the first of the digital wallets to launch a digital loan service, eSewa has now made another step forward in cementing its place as an innovative payment gateway. Likewise, this gives users another solid reason to use the popular online payment app.

Check out: Limit of digital wallet, mobile banking transaction in Nepal | Latest 2024

Eligibility

eSewa has established a set of criteria for its in-app loan service which are as follows:

• The user must be already verified. 
• Must have a valid PAN and a business registration certificate. 
• Must be active on eSewa for at least the past six months.
• Must regularly use the Send Money feature for sending and receiving amounts. 
• Must have used the load money and bank transfer features. 
• Must also have participated in international and domestic ticket booking. 
• Having a record of regular use of services such as top-up.

NOTE: Timely repayment improves future eligibility for loanees.

Evaluation process

Upon application, eSewa evaluates loan applicants on the following basis:

• Once you apply for a loan, eSewa evaluates you on the following basis:
• Your income based on your transaction count and the money transacted.
• Income contribution from a group of customers.
• Number of transactions

How to apply for a loan on eSewa?

You can apply and get the loan on the eSewa app.  Here are the steps to apply for a loan on eSewa:

• Launch the eSewa app
• Select easyloan you find in Financial Services
• Select easyloan

According to eSewa, agents can apply for a minimum loan amount of Rs 50,000 and a maximum of Rs 2,00,000 with a maximum interest of 18% per year. Likewise, there is a penal interest of 2%. To apply for a loan, it will charge a 0.75% processing fee which is calculated against the amount to be applied for.

Recently, eSewa reached 10 million downloads on Google Play . It marks a major milestone for the company which has over 10 million registered users across 77 districts.

Although popular as a payment service provider (PSP), the company has made a name for providing various types of innovative services. With its mobile loan service, the company has announced a #BeyondPayments campaign.

Tell us what you think of the eSewa loan service. Do you find it beneficial to get an instant loan on a digital wallet? You can share your opinion in our comment section below.

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An experienced tech writer covering news mostly on telecommunication, internet, latest tech & trends, and Gadgets. Being a technophile, I am particularly fascinated by the evolution of mobile networks in Nepal from legacy networks (2G, 3G) to 4G (with VoLTE, VoWiFi, eSIM) and the prospects of the upcoming 5G, and equally enthralled by the development of internet from the dial-up connection to the 2 Gbps XGS-PON fiber broadband technology and their transformative impact in the country.

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Job Application Letter Sample In Nepali

• February 6, 2021
• Education / Information

Table of Contents

What is Job Application Letter ?

When you are applying to any openings, you might want to “sell” yourself to an employer. To introduce yourself, you need to write a job application letter which is also known as cover letter. This letter should explain why you are perfect candidate for the opening position.

Most of the application letter contains three sections which are :

• Front Matter : Includes job title and source of information about openings.
• Body : This section should explain why you are qualified for the job.
• End Matter : Includes latest resume

Tips for writing Job Application Letter

• Do not copy your resume
• Tailor job application letter as per job that you are applying for
• Sound professional
• Always proofread before sending letter
• Follow guidelines if there are anything mentioned by employer

Steps to write Job Application Letter in Nepali

• Write the organization name and address on the left side of the application and date on the right side of application.
• After this write the subject(bisaye) remember to make the subject short and clear to the point.
• After subject write receiver name or organization name and their address.
• After that write महोदए or महाशय with comma or अल्प बिराम (,)
• In new paragraph write important subject matter in short form

Samples Of Other Letters in Nepali 

Sample of Job Application Letter

job application letter in Nepali

Tags: job application letter in nepali letter in nepali

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Applications , Request Letters

16 Loan Application Letter Samples | Writing Guide (+Template)

In life, many find themselves in situations where they need to seek financial aid, be it for personal reasons or business ventures. Applying for a loan often requires not just meeting specific criteria but also writing a compelling loan application letter. This letter should provide a detailed account of how you plan to utilize the funds and why you’re a trustworthy candidate. If you’re unsure about crafting such a crucial document, fear not. This article will guide you through the intricacies of writing a persuasive loan application letter, highlighting the essential elements you should include.

Loan Application Letters

Application Letter for Loan Officer

An Application Letter for a Loan Officer is a formal document submitted by an individual to a bank or financial institution, expressing interest in obtaining a specific loan. This letter outlines the purpose of the loan, provides personal and financial information, and might also detail the applicant's creditworthiness and repayment strategy. Typically, it's used when an individual seeks financial assistance for purposes such as buying a home, funding education, or other significant expenses, and aims to make a strong case for loan approval.

Loan Application Letter to Employer

A Loan Application Letter to Employer is a formal request made by an employee to their employer seeking financial assistance in the form of a loan. Typically used in situations where the employee faces unexpected financial burdens, such as medical emergencies, home repairs, or significant life events, this letter outlines the specific amount requested, the purpose of the loan, and a proposed repayment plan. It serves as an official record of the employee's intent and need while allowing the employer to assess and decide on the request.

Essential Elements of a Loan Application Letter

Crafting a compelling loan application letter involves several guidelines. Here’s a breakdown:

Header and Greeting

Whether you’re applying for a personal or business loan, always begin with a header and greeting. Your header should encompass:

• Business name (if applicable)
• Business address
• Business phone number
• Lender or loan agent’s contact details
• Lender or loan agent’s name and title
• A subject line stating the desired loan amount

Below the header, integrate a friendly greeting to set a positive tone.

Business Loan Request Summary

Offer your lender a snapshot of your loan request. Highlight the desired loan amount, key business information, your trustworthiness as a borrower, and the intended use of the loan. Ensure this section remains concise to guide your lender to the main content effortlessly.

Business Details

Start by clearly stating your loan request and the desired amount. Delve into specifics about your business:

• Legal business name and any DBA
• Business structure (e.g., LLC, Corporation)
• Duration of operation
• Business overview
• Number of employees
• Annual revenue and profit figures (if applicable)

Then, segue into the rationale behind the loan request and your repayment plan.

Lenders prioritize minimizing risks. They’ll keenly assess your repayment ability and the viability of your plans. Clearly define how you’ll utilize the funds and elucidate why this is a prudent financial decision. Showcase the potential benefits and returns from the granted loan.

Proof of Repayment Capability

Use figures from recent financial statements to illustrate your business’s financial standing. These numbers are pivotal in convincing the lender of your repayment capability. If your venture is profitable, spotlight this as a testament to your ability to honor the loan. If there’s existing business debt, provide a comprehensive debt schedule.

Authenticity

Lending carries inherent risks. Always present accurate and truthful information, including your credit history. Misrepresentation or omission of facts can be deemed fraudulent, bearing serious repercussions.

Sample Loan Application

Applicant’s Name

Bank Account Number

Applicant’s Address

City, State, Zip Code

Name of Loan Officer

Name of Financial Institution or Bank

Address of Financial Institution or Bank

RE: Loan Application for $100,000

Dear [Loan Officer’s Name],

I am writing to formally request a loan of $100,000. As a loyal customer for the past 20 years, I have always trusted this institution with my financial needs, both in my personal savings and checking accounts. Additionally, I am proud to have a proven track record with our bank, as evidenced by my previous loan of $10,000 ten years ago. That loan enabled me to establish my business, which I am pleased to say has thrived. Moreover, I ensured timely repayment of both the principal and interest.

The current loan request is aimed at expanding my business operations by constructing new offices in a strategic location within the city. I have already identified the property, and the funds will be allocated to equip the office for seamless business activities. I have attached the detailed loan application along with relevant supporting documents for your perusal.

Should you need any additional information or have questions, please do not hesitate to reach out via email or phone. Furthermore, I am more than willing to schedule a face-to-face meeting to discuss the specifics of this application, including the repayment plan.

Thank you for taking the time to review my request. I eagerly await a positive response and deeply value the ongoing relationship with [Bank Name].

[Applicant’s Signature]

Applicant’s Printed Name

Enclosures: [List of enclosed documents]

Loan Application Letter (Word Template)

Personal Loan Application to Boss

Business Loan Application

Student Loan Application

Loan Application Letter for House Renovation

Loan Application Samples and Templates

Securing a loan can be crucial for personal emergencies or to bolster business operations. However, obtaining approval isn’t always straightforward, given lenders’ concerns about potential defaults. This article has equipped you with the knowledge to craft a compelling loan application letter. By following the outlined steps, you enhance the likelihood of swift loan processing and approval.

How did our templates helped you today?

Opps what went wrong, related posts.

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Thank you for your feedback.

Letter Solution

Welcome to "Letter Solution" Everything is about letter and application writing.

Bank Loan Application Letter Sample 8+ With Format

One format and 8 sample on bank loan letter.

Table of Contents

Bank Loan Application Letter Sample: Naturally, we take a loan from a bank when we fall into a money crisis. We talk to the branch manager about it. After that, he discussed everything and instructs us on all terms and conditions. Some bank managers tell to submit a request letter with the required documents. And then many people can not write a proper request letter. So I have written the post with a format and six samples that will clear your confusion and create a good idea about any type of bank loan application letter sample. Then you can write a new application in your own way. A well-written request letter for the loan can help you to be approved your application at the time of applying for a loan.

There are different types of loans in the bank. For example

• Business loan
• Personal loan
• Educational loan
• Two-wheeler loan
• Loan against property

When you will apply for a personal loan, eligibility is a must for you.

Personal loan eligibilit:

• You should be salaried person.
• You should have a job under government, public company.
• Your age should be between 25-50 years.
• You need to be an Indian citizen.
• The minimum salary should be 25000 but it depends on the city.

Application Format

Bank Loan Application Letter

The Bank Manager

[Name of the bank]

[Name of the branch]

[Address of the branch]

Date: …../ …../ ……

Sub: [Application for home loan]

Respected Sir/Madam,

I am ___________ [Your name]. I am a [savings/current] account holder with your branch for _____ years. I am a ______ service man. My monthly salary is deposited in my bank account. I always maintain a good balance in my account. But I need a loan for _____________ [Purpose of the loan].

I am requesting you for an amount Rs. __________ as a loan. I have enclosed all the required documents as you instructed earlier. I have read, got and agree with the term and condition of the bank.

I am waiting for positive response from you.

Thanking you

Yours sincerely

[Name of the applicant]

Contact details

Bank Loan Application Letter Sample

Bank of India

[Branch Name]

[Branch Address]

Date: 00/00/00

Sub: [Request for business loan]

Dear Sir/Madam,

With due respect, I beg to state that I have a current account with your branch. I am a businessman and run three restaurants. I need an amount of Rs. 100000/- as a loan for my business purpose.

I will be thankful to you if you will consider my request as early as possible.

Write A Letter To Bank Manager For Educational Loan

Gabgachi Branch

Delhi-700 071

Date: 12/11/2021

Sub: Application for educational loan

I, Ashutosh Kumar Saha, a permanent resident of Sukanta More, Gabgachi, would like to apply for an education loan for further studies. I have just appeared for my higher secondary board exams and would like to complete a course in B.TEC from a reputed institution in Delhi.

I can come to the branch at your convenience to discuss it required to get a loan in my favor. I will always be grateful to you if you look into the matter and approve my loan.

Ashutosh Kumar Saha

Application For Home Loan

Name of the bank

Name of the branch

Address of the branch

I am prakash saha. I am a savings account holder with your branch for ten years. I am a government serviceman. My monthly salary is deposited in my bank account. I always maintain a good balance in my account. But I need a loan for building my house.

I am requesting you for an amount of Rs. 200000/- [Two Lakh] as a loan. I have enclosed all the required documents as you instructed earlier. I have read, got and agree with the term and conditions of the bank.

I am waiting for a positive response from you.

Application For Personal Loan

It is stated that I would like to request you for a personal loan of Rs. 200000/-. I have a savings account for 15 years with your branch and save a good balance in the first week of the month. I have been working in an I.T company for 20 years and my salary is 25,000/-. I will pay the loan by deduction money by a savings account. I have read the term and conditions and got it. I have enclosed the necessary document as the instruction.

I am waiting for your positive response of hearing.

Yours faithfully

Sample of Bank Loan Application Letter

Sub: [Application for __________________ ]

With a lot of respect, I beg to state that I am an old account holder in your branch. My account number is XXXXXXXXX. Now I am a serviceman. I am doing my job in Malda Sonoscan Nursing Home. My salary is 12000/-. I need a loan amounting to Rs. 80000/- for buying a car. The deduction should be from my salary account.

Therefore I request you to grant me the loan and then I will be obliged to you.

Business Proposal For Bank Loan Sample

Sub: [Application of proposal of the business loan]

I am writing this letter to request a small business loan in the amount of Rs. 80,000/-for the purpose of business development. My current account number is XXXXXXXXX in your branch. I am an account holder for ten years and maintain a good balance in this account.  

My company name is [XYZ]. It is a growing business that serves furniture to customers. You can follow our success online at [website name]. 25 workers work here daily.

I have attached all the required documents along with this application as you instructed earlier. So I earnestly request you for a small loan. 

I am looking forward to hearing at your convenience.

FAQ’s On Requesting Loan

How do I write a letter requesting a loan?

Answer: It is not a hard matter. Just follow the structure and fill up the place with your right information.

Sub: [Application for_______ ]

Write first paragraph following the format.

Second paragraph

Third paragraph

That is enough for a letter of requesting loan.

What is the difference between application and letter?

Answer: There is a difference between application and letter. A letter is written for communication or giving information to anyone. On the other hand, an application is written to request for something.

How do you end an application letter?

Answer: You end an application letter with “Yours faithfully or your sincerely”. Besides it nowadays to write contact details at the end is very important.

Should I write thank you in advance?

Answer: Yes. You should write “Thank you” in advance for close connotation. It will express your politeness.

• Closing your bank account
• A new pass book
• New check-book
• Transfer bank account
• Opening a joint account
• Bank statement
• Hire a locker
• Change specimen signature
• Renewal of fixed deposit account
• Complaining non-receipt of pass-book
• Stop payment of a lost check
• Reopen account
• Change registered mobile number

I hope you have got the right information and chosen bank loan application letter sample . If you like the post, you can do a little help by sharing it with your friends, relatives and do comment in the below comment box.

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