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.
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.
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.
The average tenure for an education loan is between 1-15 years in case of most Nepalese banks. However, for larger loan amounts, some banks may offer a longer tenure of up to 20 years.
Land or land & building and/or
Cash and/or cash equivalent collateral(E.g- FD)
Collateral owned by the applicant/s and or by his/her close relatives is also accepted
• For Land and/or Building:
Maximum up to 60% of Fair Market Value depending upon derived Fair Market Value of Collateral."
• For Fixed Deposit:
Maximum up to 90% of the principal amount of the Fixed Deposit"
Yes, you must have a guarantor to apply for an education loan. If the applicant fails to repay the loan, the guarantor is responsible for repaying it. The guarantor must be immediate Family member & chosen based on their net worth.
Flexible repayment options, only interest to be paid during the moratorium period then only EMI will start.
Moratorium period is a choice, that can be 3 months or 6 months and maximum up to one year. (Moratorium period is a duration when the borrower has to pay only interest rate not principal)
Without having account, one can apply for an education loan but after taking loan, it is obvious to have an account in a related bank.
Most banks levy prepayment penalty on education loan. However, it is best to check with the bank before signing the loan sanction letter.
It may take one week and it depends on urgency as well.
