Mortgage Loan

A mortgage loan is a secured loan that allows you to avail funds by providing an immovable asset, such as a house, land or commercial property, as collateral to the bank. It is provided to fulfill personal or business financial needs, including social obligations, emergency medical bills, personal investments, debt settlement, and more. These loans can be easily obtained at competitive rates by using one's own property or a family member's property as collateral View More

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Common features of Mortgage Loan

  • Competitive premium rate.
  • Quick loan processing with simplified documentation
  • Flexible Repayment Schedule
  • Multi-purpose loan
  • Loan extension

          50% of FMV of the property (outside Kathmandu)

          40% of FMV of the property (inside Kathmandu)

Mortgage Loan Eligibility Criteria 

  • Nepalese Citizen at least or  above 21 years.
  • Profession

           Salaried individual - Should be in permanent service

           Self Employed individual – Business should be at least 2 years in commercial operation

           Remittance Income Holder

  • Sustainable and sufficient source of income.
  • Purchasing of loan is subject to the satisfactory debt servicing to other Banks/FIs.

Documents Required for Mortgage Loan


  • 2 Passport size photo of applicant.
  • Photocopy of citizenship certificate of Applicant & guarantor.
  • Family members name in detail.
  • Photocopy of Tax/PAN/VAT certificate along with registration certificate.

Proof of Income

  • Salary Certificate.
  • Photocopy of contract agreement between applicant and his/her employer.
  • Photocopy of Rent Contract if any.
  • Photocopy of audited/management prepared Financial Statements.
  • Self-declared income.
  • Tax paid/clearance certificate.
  • Others, if any.


  • Loan application form duly filled and signed in standard format of the Bank.
  • Current account of the applicant / borrower.
  • Net worth declaration.
  • Original Blue Print of the land (Napi Naksha) certified by concerned authority.
  • Copy of Building construction completion certificate from Municipality/Rural Municipality in case of purchasing built house (Nirman Sampanna Pramanpatra).
  • Copy of land ownership certificate (Lalpurja).
  • Original latest land revenue receipt (Malpot Receipt).
  • Approved drawing of the building from Municipality/ Rural Municipality (Naksha Pass).
  • Copy of land Transfer Deed (Rajinama).
  • Original four Boundary Disclosure (Char Killa Pramanit) from ward office.
  • Approval letter of municipality for extension and renovation/modification  (if needed) of house.
  • In case of Purchasing of loan, loan statement from other banks and financial institution.
  • Multiple banking declaration.
  • Other documents stipulated by the Bank from time to time.

Mortgage Loan Common Fees & Charges

  • Processing Fee: Banks charge a processing fee for processing the loan application. This fee is usually a percentage of the total loan amount.
  • Late Payment Fee: If you fail to make a payment on time, the bank may charge a late payment fee. It's crucial to adhere to the payment schedule to avoid these charges.
  • Prepayment Penalty: Some loans have a prepayment penalty if you pay off the loan before the agreed-upon term. Check the loan terms to see if this fee applies.
  • Annual Fee: Some banks charge an annual fee for maintaining the loan. This fee is not as common as others but may still be present.

Common Use of Mortgage Loans in Nepal 

  • Meet the fund requirement of individuals for various personal needs like marriage, traditional rituals, medical treatment, travel, personal investment, settlement of personal borrowings, Leisure and vacation, health and wellness, and other various needs.
  • Purchase/construct commercial/business lands and/or building.
  • Equity refinance against land and/or building owned by the individual

Mortgage Loan Rejection 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 Evaluate Your Debt Load: Assess your existing debts and create a plan to manage and reduce them over time.Do not apply for Too Much: Applying for an excessively large loan amount will cost you more and ultimately put a financial burden in future. Consider a more reasonable loan amount.
Do Strengthen Employment Stability: A stable employment history can positively influence loan approval. Job stability may be a concern, work towards strengthening your employment history.Do not Provide Incomplete Information: Ensure that all required documentation and information are provided in your loan application. Incomplete applications may lead to rejection.