Education Loan in Nepal


Good college and university degree helps you to assure a lucrative job and financially well- settled future. Well here in developing countries like Nepal, and even in highly industrialized countries, not all students are fortunate enough to pay fees demanded by reputable colleges and universities. 

The education loan market in Nepal alone is more than 2000 million per year, so this can be the area where banks can think of investment (Dhungel K. & Lamichhane S., Banking Journal, Volume 1, Issue 1). The loan amount varies among the banks from Rs. 1,00,000/- to 80,00,000/- for studies in Nepal and abroad. The special provision of moratorium period from 1 year to 5 years is there in education loan which is not provisioned for other types of loans. The moratorium is an 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. Similarly, the repayment is by Equated Monthly Installments (EMIs) that commences after the completion of the course.

Here in this blog, we have tried to give you information about the education loans in Nepal. Almost all of Commercial Banks ('A' Class Banking Institutions) of Nepal provide educational loans against the cost of admission fees, tuition fees and various other miscellaneous expenses incurred while pursuing studies in Nepal and abroad at highly subsidized interest rates.

Eligibility Criteria:

The eligibility criteria and loan procedure vary according to the Banks. For applying for an education loan in Nepal, the applicant must 

  • Be a citizen of Nepal.
  • Have a confirmation of admission from the respective education institution of the student.
  • Have a creditworthy cosigner (generally parents/ guardian/ spouse) having a regular source of income for repayment of installments.
  • Be at least 18 years of age.
  • Be the student of Undergraduate/Bachelors, Graduate/Masters & above, or any Professional Courses.
  • Posses collateral security or FD equivalent.

Some of the leading banks that provide education loan in Nepal are:

1. Bank of Kathmandu:

Bank of Kathmandu offers education loans to part-finance students (tuition fee, living expenses & traveling expenses), with the support of Parents or any other guarantor from one house family member.

Loan Amount - NPR 150,000 to 10,000,000/-

Financing %:

  • Maximum of 90% of institute/hostel expenses. In the case of MBBS/MD courses in Nepal, the loan amount is allowed up to 100% of the total tuition fees only. However, this should not exceed 90% of the total cost of the MBBS/MD program.
  • In addition, not exceeding NPR 1,000,000/- for other expenses such as airfare, computer and other incidental.

Tenure - Maximum 10 years (Exclusive of moratorium period of 12 months).
Repayment - Equated Monthly Installments (EMI) over the approved loan tenure.
Interest Rate - Base Rate + 0.50 to 6.00
(View Details)

2. Citizens Bank Limited

As education is the most important investment one makes in life. Therefore, Citizens Bank has brought the Education Loan, which aims to finance meritorious students who choose to pursue higher education (Professional or technical) in Nepal and abroad. The loan is extended to students/ professionals desiring to pursue higher studies such as Graduation, Post-Graduation, Specialization, and Vocational/Technical courses in the country or abroad. Citizens Education loan covers a maximum of 80% of expenses in connection with the studies of the borrower in the country or abroad.

Purpose: To finance the education cost of the students desiring to pursue higher education in Nepal or Abroad
Nature: Terminating loan payable in Equal Monthly Installment
Loan Size: Maximum Up to 5.00 Million
Tenure: Repayment period maximum of 15 years including moratorium period.
Loan Portion: Up to 100% of the cost of education but not exceeding 80% of the Distress Value of collateral security.
View Details

3. Civil Bank

Civil Bank provides education loan that is extended to students or sponsor of the student to enroll for higher study abroad or within Nepal.

Maximum Tenure - Maximum period of 10 years (including grace period of up to maximum three years)
Repayment Mode - EMI Based
(View Details)

4. Everest Bank Limited

Everest Bank Limited provides education loans to the students that advance them to pursue higher education in Nepal as well as abroad.

Limit - Need-based. The amount of loan shall be co-related to the expenses involved in taking up the course by the student and the expected earnings after qualifying.

Disbursement - Loan shall be disbursed as a term loan. The year-wise limit shall be set up based on the total expenses involved in completing the course within the overall limit and disbursement made accordingly.

Security - Collateral security/FD equivalent to 100 percent of the loan amount acceptable to the Bank.

Everest Bank also provides "Sanjivani Education loan Scheme" to pursue MBBS/BDS studies in Nepal.
(View Details)

5. Global IME Bank Limited

Global IME Education Loan is provided to suffice financing requirements for students to pursue a sound academic career. This education loan aims to provide financing in such a way that the requirements of the students are met without any hassles.

Purpose - To provide education cost of the student to study abroad or within the country in or above +2 in any streams.
Interest Rate - Competitive premium rate.
Flexible Repayment Schedule - Monthly (EMI) or quarterly (EQI) basis.


  • Registered mortgage of land and building
  • Personal Guarantee of family member or third party acceptable to the Bank.
  • Comprehensive insurance coverage of building
  • Security coverage requirement: 120% in Distress value of the offered Fixed Assets Collateral (land and building)

View Details

6. Himalayan Bank Limited

Himalayan Bank provides education loan to Nepali students for higher studies.
View Details

7. Machhapuchchree Bank Limited

Machhapuchchree Bank Limited Education loan is specially designed for students intending to pursue higher education domestically and abroad. International universities and colleges give a lot of credence regarding the demonstration of adequate financial means when an education loan is shown as their financial strength. Due to its stringent approval process, MBL education loan has been accepted by most of the international universities and colleges worldwide.

Purpose - Financing education cost.
Interest Rate - Competitive Interest rates.
Tenor - Maximum 12 years, including 2 years moratorium period.
Financing Percentage - Loan limit can be approved up to 70% of Fair Market Value of real estate collateral or 80% of total education expenses.
Loan size - Minimum: NPR. 200,000; Maximum NPR. 6,000,000 or total expenses whichever is lower.
Loan processing fee - 1% of the loan amount.
Repayment Method -  Equated Monthly Installment (EMI) (Principal + Interest).
View Details

8. Mega Bank Limited

Mega Education Loan is an easy financial solution for the students willing to pursue their higher education both abroad or in Nepal. It is a greatly flexible loan provided against the landed collateral which shall cover entire expenditure from admission fee, tuition fee, cost of stationary to logistic expenditure. Provided with the moratorium period up to 4 years wherein the customers have an option of servicing interest only, Mega Education is a large customer-friendly loan.

Interest Rate and Service Charge - Competitive 

Documentary Requirements:
•    Education loan is provided against mortgage of landed security. Hence, all the documents prescribed for Mortgage Loan is mandatory for Education Loan.
•    Additionally, an offer letter from College/University incorporating course of study and the total cost is required.
View Details

9. Nabil Bank Limited

Nabil Bank Limited brings to you simplified Education loan which aims to finance students who choose to pursue higher education.

Loan size - Up to NPR 10 million.
Repayment options - Up to 15 years.
Interest Rate - Attractive & competitive.
Moratorium period - Maximum 4 years or course duration whichever is earlier.
Security - The bank offers easy education loan scheme against your property and fixed deposits. Education loan is also available up to 90% of the principal amount of the deposits.
View Details

10. NCC Bank

The education loan of NCC Bank has been structured for financing the parents of the needy students intending to pursue higher studies in Nepal as well as abroad.
View Details

11. Nepal Investment Bank Limited 

Nepal Investment Bank provides education loans to finance students who are willing to pursue higher education in Nepal and abroad.

Tenure - Maximum up-to 10 years. Loan shall be terminated on /or before 60 years of age of the borrower.
Repayment - Equal Monthly Installments (EMI).
Fees and Charges - Unscheduled payment. 1.5% of the payment amount (*conditions apply). Management fee: 0.50%( Flat) of the loan amount or NPR 5,000 (whichever is higher).
View Details

12. Nepal SBI Bank Limited

The education loan of Nepal SBI Bank Limited offers easy financial solutions to students who are willing to pursue higher studies in Nepal and abroad.

Maximum loan amount - Rs 80.00 Lacs*

Moratorium - A maximum period of 5 years or 3 months after the completion of course designated, whichever is earlier. 
Repayment - The loan shall be repaid in 10 years after the moratorium period on EMI basis. 
Interest during the moratorium period - The parents/guardian of the student shall pay the interest during the moratorium period on a monthly basis as per the Nepali calendar. 
Security - Land and building having a value of at least 110.00% of loan amount or up to 95% of the Fixed Deposit/Government securities. 
View Details

13. NMB Bank Limited

NMB Bank provides education loans according to the fees payable to the educational institute and accommodation expenses Examination/library/laboratory fee Purchase of books/equipment/instruments Travel expenses. Education Loan is extended to students or sponsors of the student to enroll for higher study abroad or within Nepal.

Financing 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%
Tenure: Maximum up to 10 years.
Repayment Method:  EMI
View Details

14. Kumari Bank Limited

Kumari Bank provides education loan to help students pursue their higher education (Professional or technical) in Nepal and abroad

Interest Rate - Competitive
Financing - The parents/ guardians of the student should have an adequate source of income for repayment of EMI.

View Details

15. Laxmi Bank

Laxmi Bank extends Education Loan to finance all expenses related to the course of study as determined by the college/university/institution including the cost of traveling, living, and accommodation.

Loan Amount - Maximum NPR 7 Million, 75% of FMV of the property or 95% of the value of Fixed Deposit or Government Bond.
Loan Tenure - 15 years
(View Details)

16. Prabhu Bank Limited

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's education loan scheme provides loans for those students who demonstrate ability, drive, and ambition but do not have the financial resources to achieve their goals.

Purpose - For the payment of admission fees, monthly fees, examination fees, books, stationery and instruments required for course undertaken by borrowing scholar.
Loan Amount - Minimum Loan Amount NPR 100,000 and Maximum Loan Amount NPR 5 Million. The loan can be granted up to 90% of the Distress Value subject to the maximum loan limit.
Tenure - Maximum loan tenure of 15 years.
Loan Fee - Management Fee of 1% of the sanctioned loan amount.
Repayment Method - Repayment in equated monthly installments basis.
View Details

17. Prime Bank Limited

Earning a higher degree in renowned College/University was a sweet dream a few years back. But, now it is not a hard business for needy and deserving scholars. It is the most important investment one makes in their life as well as the good dreams memorized on their minds.

To achieve your dream for higher education, Prime Commercial Bank offers Prime Scholar Loan for future scholars. With this product, we assist our customers to achieve a higher degree from the country & abroad. We have a strong belief that no one should be deprived of the light of education due to a lack of sufficient funds. So, if are you compromising your education due to the insufficiency of funds, then give your worries to us. Prime Scholar Loan is here to take care of your educational needs.

Interest - Low and competitive interest rate. Interest charged quarterly until grace period & repay on EMI thereafter.
Repayment - Repayment can begin after graduation. Similarly, students have 5 years to repay the loan after the final disbursement.
Security/Guarantee - Collateral that covers the value of the loan by 130 percentage. The Collateral/Security can be land, building, Securities & bonds, Gold, Fixed Deposit receipt in the name of student or parent.
View Details

18. Sanima Bank Limited

Sanima Education Loan is the best financial solution for the students aspiring to pursue higher education in Nepal or abroad. It is a convenient and complete financial solution provided against collateral security for meeting the requirement of our valued customers that shall cover the entire expenditure on educational institutes, transportation fare, stationery, and logistics.

Purpose - Meeting financial needs for Education purposes.
Tenure - Up to 15 Years including moratorium period.
Service Charge -  1% on approved loan limit.
Financing - Maximum up to NPR 10 Million.     
View Details

19. Siddhartha Bank Limited

Education expense is an investment for your bright future. Siddhartha Bank makes it easy for you to climb the ladder of academic qualifications by providing a variety of financial supports for your college expenses.

Interest Rate - Competitive interest rate.
Loan Amount - Maximum up to 80% of the total expenses to be incurred for the proposed study.
Security - To be backed by mortgage of land or land and building with at least a 40% margin.
Tenure - Maximum up to 10 years in case of Term Loan including moratorium period.

View Details

20. Standard Chartered Bank Limited

Standard Chartered's convenient education loan is designed to help parents fund their child’s higher education. The dedicated team of the Bank will help to plan your financial needs and provide a solution for the child’s higher education in-country and abroad. 

Interest Rate - Attractive & competitive interest rate.
Moratorium Period - Moratorium period up to a maximum of 3 years or course duration whichever is earlier.
Loan amount - Minimum NPR 1 million and maximum up to NPR 10 million. An additional loan of NPR 0.5 Million to cover miscellaneous expenses (conditions apply).
Loan tenure - Minimum 1 year and maximum up to 10 years.
Repayment Methods - EMI basis after the moratorium period.

View Details here