08 Oct, 2023

Education Loan in Nepal: Current Trend and Tips

Each day, approximately 2000 young individuals from Nepal depart the country, driven by the pursuit of employment opportunities or the aspiration for a brighter future overseas. Compared to previous years, Nepal is witnessing an emerging trend of young students going abroad for better educational opportunities and career prospects. If we ask 10 +2 graduates about their further plans, most of them would probably say they have planned to go abroad.From January to July 2023, the Ministry of Education in Kathmandu approved a staggering over 100,000 No Objection Certificates (NOC) for Nepali students to study in European countries, including Australia, Canada,

UK, Japan, and the US (source). This figure is more than double the number of NOCs approved in the previous year, indicating a kind of  trend in Nepali students seeking educational opportunities abroad.Over the recent years, the government has injected a substantial Rs 1.4 trillion into the education sector of Nepal. However, it has struggled to retain and nurture students within the domestic educational system. The trend of Nepalese students going abroad for higher education keeps increasing year after year. In comparison to previous years, Nepalese students  have spent as much as Rs 67.70 billion for education abroad this fiscal year as per data.Fiscal Year Total InvestmentsNumber of people going abroad for studies with NOC2075/761 trillion 34 billion63,2592076/771 trillion 63 billion34,0942077/781 trillion 71 billion27,9782078/791 trillion 80 billion117,5632079/801 trillion 96 billion110,297(Source: myrepublica website) Studying abroad can be costly compared to domestic education, and many countries rely on bank loans rather than parental assets for education loans. Moreover, education loans would be a prudent option for students to finance their education independently. It plays a crucial role in simplifying the process of studying abroad by covering the overall cost of education, including tuition fees, accommodation and travel expenses. Moreover it helps to bridge the gap between students and educational aspirations and facilitate an increasing representation of Nepalese students abroad.For those students who need funds for higher education, an education loan would be best. Here are  some benefits of education loans:1. Adequate finance for higher education2. Repayment Flexibility3. Provision of Moratorium Period4. Less Processing Fees with Subsidised Interest Rate5. Easy Repayment Module with EMINecessary documents required for educational loanGeneral list of documents that needs to be prepared while processing an education loan is enlisted as below. However, there can be few changes in document requirement in case to case basis and as per Bank's due diligence. Academic  Documents Offer letter from college/ universityDocuments specifying total education costs and living expenses from the university.No Objection Certificate (NOC) issued by Ministry of EducationCollateral Related Documents Land ownership certificateOriginal trace mapOriginal four boundary certificateTax paid receipt for land and buildingBuilding Construction Completion certificate(in case of building included as collateral)Other Documents Loan application formCitizenship of borrower/ guarantor/ collateral ownerPassport as applicablePhotographs of  borrower/ guarantor/ collateral owner (pp size)Relationship verification certificateIncome source documentsIncome verification certificateTax clearance verificationPAN certificate of borrowerIf you also wish to apply for an education loan to study abroad, and are confused about which is the best Bank option available in Nepal for an education loan then contact Saral Banking Sewa. Saral Banking Sewa will make it easy for you to understand, compare & choose best educational loans of various banks. We have provided detailed information on our website about educational loans, which will give you a basic idea and help you choose the most suitable bank for you. Also, SBS enables you to make smart financial decisions with Side-by-side comparison, and guidance through chat, calls, and emails.Contact us:WhatsApp/Viber: 9851361107Telephone No.: 01-5269107If you found this Blog helpful, please share this blog with your family members and friends.If you have any feedback, please feel free to leave a comment in the section below.Connect with us for Banking updates onFacebook             Instagram