A mortgage loan is a type of loan where a borrower pledges a property (e.g., house, land) as collateral to secure the loan. If the borrower fails to repay, the lender has the right to take possession of the property.
In Nepal, residential properties, commercial properties, and land can typically be used as collateral for a mortgage loan.
Loan amounts are typically a percentage of the property’s market value, usually up to 60-70%. The amount you can borrow depends on your income and the value of the property.
The repayment period for mortgage loans in Nepal typically ranges from 5 to 20 years, though it can be extended depending on the bank’s policy and the borrower's financial profile.
You can apply for a mortgage loan by visiting the bank or financial institution, completing an application form, and submitting the necessary documents (e.g., property ownership papers, income proof, identity proof).
Most banks allow early repayment of mortgage loans, but some may charge prepayment penalties or fees. It's advisable to check the terms before making an early repayment.
