Education Loans in Nepal: Application Process, Eligibility, and Loan Options

Complete Guide to Education Loans in Nepal | Application Process, Eligibility, and More. Education loans are offered by a variety of Banks, including commercial banks, development banks, and microfinance institutions. The terms and conditions for obtaining an education loan may vary depending on the lender, but generally, students or their parents are required to provide collateral, such as property or a savings account, to secure the loan. Additionally, students are typically required to provide proof of acceptance into a reputable educational institution and demonstrate their ability to repay the loan.

How To apply for an education loan in Nepal, you may need to:

Find a Nepal bank that offers education loans.

There are many (A) level Banks in Nepal that offer education loans, including commercial banks, development banks, and microfinance institutions. Some of the well-known financial institutions that offer education loans in Nepal are:

Nepal Bank Limited

Nepal Bank has provided an NBL education loan to meet the fiscal requirements for further education in Nepal and abroad.

Nepal Bank Limited

Required Documents for applying for a Student Education Loan in Nepal Bank.

Identification RelatedLand CertificatesIncome Statement
Personal identification of borrowers and guarantorsLand ownership certificateSalary certificate and bank statement.
Photograph of borrower and guarantorLand revenue receiptAppointment letter/Contract Paper.
Family details from the concerned local authority.Rajinama/Bakaspatra/Anshabanda paper etcRental agreement with tenant identification (if rent income)
Firm registration certificate (if business income)Ward map and File map of collateralRental tax receipt
PAN/VAT certificate (if business income)Four boundaries (charkilla)Pension Patta (if pension income)
Partnership deed (if business income)Approved house map from local authority.Audited financial statement of last year and projection of coming year (if business income)
Nirman Sampanna/abhilekhikaran paperTax clearance certificate/receipt for income
If foreign income, Passport, Visa, Salary certificate, Contract paper, salary receipt/ bank statement of salary, documents of the remit to Nepal, etc.
PAN of the borrower for a loan Rs.50 lakh and above
Required Documents for applying for a Students Loan in Nepal

Interest Rate of Nepal Bank

Here are the Interest Rates of Student education loans from Nepal Bank.

Image Source: Nepal Bank
Image Source: Nepal Bank

The service charge for education loans in Nepal Bank.

It depends upon the bank, and service charge.

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Nepal SBI Bank

Nepal SBI Bank is the first Indo-Nepal bank in the financial sector. Which was promoted by the three institutional promoters State Bank of India, Employees’ Provident Fund, and Nepal Agricultural Development Bank signing an MOU on 17 July 1992. Nepal SBI has also provided Education loans in Nepal.

Nepal SBI Bank

Supporting Documents Required for Education loan.

  • Additional Documents Required
  • Properly completed loan application.
  • Certificates of the most recent qualifying examination.
  • Copies of the offer letter, if any.
  • Proof of enrollment in the course or an offer letter from the relevant college or university.
  • A list of the course’s costs.
  • Two copies of each student and parent/guardian/most guarantor’s recent passport-size photo.
  • Copies of the necessary foreign exchange permits.
  • Copies of the pupils’ citizenship or passports and those of their parents, guardians, or surety.
  • Statement of the parent’s or guardian’s regular sources of income and other supporting papers, if needed. Tax clearance/paid/filed certificate, as appropriate.
  • PAN of the borrower or guarantor, as appropriate.
  • A detailed list of parents’ and guardians’ assets and obligations.
  • copies of the ownership certificates for the potential mortgaged or pledged property (FDRs).

The interest rate of student education loans in Nepal SBI BANK L.T.D

Loans & Advances w.e.f 15th January 2023, (1st Magh, 2079)New
                                                   Personal Loan
AccountUp to 3 yearsOver 3 to 5 yearsabove 5 to 10 yearsOver 10 yearsFloating Interest Rate
Education Loan13.50%14.50%15.00%15.50%BR + Up to 6.00%
The interest rate of student education loans in Nepal SBI BANK L.T.D

The service charge for education loans in Nepal SBI bank.

It depends upon the bank, and service charge.

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Nic Asia Bank Limited

A straightforward and adaptable student loan for your further education is the NIC Asia Education Loan. The education loan is a term loan secured by collateral that has been specially created to meet your financial needs for higher education in Nepal or abroad. Our study loan includes an easy application process, speedy funding, and a longer payback period.

Some of the Particular Documents Needed to Process the Loan in NIC Asia Include:

  • Offer letter from the relevant educational institution, fee schedule, acceptance letter, or supporting documentation
  • For studies abroad, there is no letter of opposition from the Ministry of Education (NOC).
  • copies of the borrowers’ and guarantors’ citizenship certificates and/or passports
  • For studies abroad, a copy of each student’s passport and that of any dependents. Relationship documentation (where applicable)
  • Statement of Net Worth for the Borrowers and Guarantors (where applicable)
  • I.D. Card (where applicable)
  • Income Source Statements
*All documents linked to collateral or security *All documents must have original signatures that have been confirmed by bank representatives. The Bank also has the right to ask for more documentation if it sees fit.

The interest rate of student education loans in NIC Asia BANK L.T.D

According to 17th September 2022 (1st Ashwin 2079), the Bank’s interest rate on all savings deposit and Fixed deposit products are as below;

Auto LoanFloating Rate(%p.a)Fixed-Rate(%p.a)
Education LoanBase Rate + UpTo 8%15.99%
The interest rate Nic Asia

These financial institutions typically provide education loans for higher studies in Nepal and abroad. It’s always recommended to directly contact the institution to confirm the information and availability of the loan, as the policies and criteria for the loan may vary depending on the Banks and the loan period.

Fee and service charge for an education loan as per bank

Fee and service charges in NIC Asia checkout.

There are many commercial banks in Nepal, that gives education loan they are:

  • Nepal Investment Bank Limited
  • Standard Chartered Bank Nepal Limited
  • Agriculture Development Bank Limited
  • Machhapuchhre Bank Limited
  • Nepal Credit and Commerce Bank Limited
  • Himalayan Bank Limited
  • Nabil Bank Limited
  • Prabhu Bank Limited

The eligibility criteria for education loans in Nepal may vary depending on the financial institution and the loan product, but some of the common requirements include:

  • Proof of acceptance into an educational institution.
  • Proof of identity, such as a citizen ID or passport.
  • Financial statements, such as income tax returns, bank statements, and salary slips.
  • Collateral, such as property or a savings account, to secure the loan.
  • For Creditworthiness, institutions usually conduct credit checks of the applicant and co-borrower/guarantor.
  • A co-borrower or guarantor is typically a family member or close relative of the student and is willing to take on the loan in case the student is unable to repay it.

It’s important to note that these are general criteria, and some Banks may have additional requirements and different criteria as per their policies. It’s always recommended to check the eligibility criteria and required documents with the financial institution you are applying for the loan.

Samples of education loan form, Fill out an application form

Here are samples of education loan forms, Once you have gathered all of the required documentation for an education loan in Nepal, you will need to fill out an application form and submit it to the financial institution. The application process may vary depending on the institution, but generally, you will need to:

  • Obtain an application form from the institution, either in person or online.
Nepal SBI Bank
  • Carefully read and fill out the form with accurate and complete information.
  • Attach all of the required documentation, including proof of identity, proof of acceptance into an educational institution, financial statements, and collateral.
  • Submit the completed application form and documentation to the institution either in person, by mail, or online, depending on the institution’s policies.

It’s always recommended to keep a copy of all the documents submitted and also the application form. It’s important to note that, some institutions may also have an online application process, where the applicant can submit the application form and required document online and then have to visit the institution for an interview or further process.

Wait for the loan application to be approved or denied.

After you have submitted your education loan application to the financial institution in Nepal along with all of the required documentation, you will need to wait for the institution to process your application. This can take several weeks, depending on the institution’s policies and procedures.

The institution will typically review your application and documentation to assess your creditworthiness and ability to repay the loan. They may also verify the information you have provided, such as your enrollment in the educational institution and the collateral you have offered.

Once your application is reviewed and processed, the institution will inform you whether your loan application has been approved or denied. If the loan is approved, the institution will provide you with details of the loan amount, interest rate, repayment schedule, and other terms and conditions. If the loan is denied, the institution will usually provide the reason for denial, so you can take the necessary steps to address the issue and apply again.

How Long Does It Take To Get A Education Loan in Nepal?

It Takes To Get A Education Loan in Nepal, Getting approved for an Education loan depends on several factors, such as the lender’s requirements, your credit score, and the application process. In some cases, you might be approved the same day you apply; in others, it could take as long as a week in Nepal.


A level bank provides loans to customers, after reading this article you already know how to apply for an Education loan in Nepal, It’s important to note that, the terms and policies of loans may vary depending upon financial institutions and their policies. Additionally, you should carefully review the terms and conditions of any loan you are considering, including the interest rate, repayment schedule, and any fees or penalties that may apply.

I hope this helps! Let me know if you have any other questions.

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