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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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


  • 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



Do Research Loan Options: Compare different banks and loan products to find the most favorable terms and interest rates.Do not Ignore the Fine Print: Carefully read the terms and conditions of the loan agreement, including interest rates, repayment terms, and any associated fees.
Do Understand Interest Rates: Understand whether the interest rate is fixed or variable and how it will impact your overall repayment.Do not Borrow More Than Necessary: Only borrow what you need to cover tuition and essential living expenses. Avoid taking out excessive loans that could lead to financial strain.
Do Check Eligibility Criteria: Ensure you meet the eligibility criteria for the loan, including academic requirements and any necessary co-signer arrangements.Do not Miss Repayments: Make all loan payments on time to avoid late fees and negative impacts on your credit score. Consider setting up automatic payments if possible.
Do Budget Responsibly: Create a budget that includes all your educational expenses, and borrow accordingly.Do not Use Loan Funds for Non-Educational Expenses: Use the loan only for educational expenses and not for non-educational purposes.
Do Communicate with the bank: If you face financial difficulties, communicate with your bank early. They may offer options to help you during challenging times.Do not Default on the Loan: Defaulting on a loan can have severe consequences, including damage to your credit score and legal actions. Seek assistance if you're facing financial challenges.
Do Plan for Repayment: Develop a plan for repaying the loan after graduation, considering your expected income and potential career opportunities.Do not Choose a Loan Based Solely on Interest Rates: While interest rates are crucial, consider the overall terms, including repayment options and flexibility.


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.

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