FAQ

• Any Nepalese citizen having 18 years at the time of loan origination.
• Salaried individual - Should be in permanent service.
• Self Employed individual - Business should be at least 2 years in commercial operation.
• All individuals having a sufficient level of income to repay EMIs.
• Should have At least 8 ft wide motor able access of proposed land/building.
• Third-party collateral is not acceptable.

First of all, you need to submit your application which will be evaluated on certain parameters by banks in Nepal. Then, property valuation and title check follow will be done and if the application is accepted, you need to submit all the documents requested by bank. 

All home loans repayment happen in the form of an EMI (Equated Monthly Installment) through the customer’s bank account. 

Equated Monthly Installment (EMI), refers to the amount you will pay to bank on a specific date each month till the loan is repaid in full. 

The EMI comprises of the principal and interest components which are structured in a way that in the initial years of your loan, the interest component is much larger than the principal component, while towards the latter half of the loan, the principal component is much larger.

It is calculated on the basis of the principal loan amount, the tenor of the loan and the interest (floating or fixed) that is charged. After part payment or interest rate changes, the EMI is also bound to change.

This depends on the financial institutions. Most of them are between 15 to 20 years while some banks like NIC Asia can provide tenure up to 50 years.

Once repayment capacity determines your eligibility to apply for home loan, lenders consider the following factors:

• Income level of the applicant
• Age  of the applicant
• Qualification (stability and occupation continuity)
• Spouse’s income (household income is taken into account when there is a co-applicant)
• No. of dependants (it is a measure of repayment capacity)
• Credit history and score (past repayment track record)
• Status of existing loans

• Construction & Purchase of house/flat
• Repairs / renovation / additions / alteration to the house/flat
• Purchase of land to construct house/building for residential purpose

Market value is the estimated sum that is expected to be received for the property given the current market circumstances.