An education loan is financial assistance provided by banks or financial institutions to students who need help covering the costs of their education.
Do’s | Don'ts |
| Do Research Loan Options: Compare different banks and loan products to find the most favorable terms and interest rates. | Do not Ignore the Fine Print: Carefully read the terms and conditions of the loan agreement, including interest rates, repayment terms, and any associated fees. |
| Do Understand Interest Rates: Understand whether the interest rate is fixed or variable and how it will impact your overall repayment. | Do not Borrow More Than Necessary: Only borrow what you need to cover tuition and essential living expenses. Avoid taking out excessive loans that could lead to financial strain. |
| Do Check Eligibility Criteria: Ensure you meet the eligibility criteria for the loan, including academic requirements and any necessary co-signer arrangements. | Do not Miss Repayments: Make all loan payments on time to avoid late fees and negative impacts on your credit score. Consider setting up automatic payments if possible. |
| Do Budget Responsibly: Create a budget that includes all your educational expenses, and borrow accordingly. | Do not Use Loan Funds for Non-Educational Expenses: Use the loan only for educational expenses and not for non-educational purposes. |
| Do Communicate with the bank: If you face financial difficulties, communicate with your bank early. They may offer options to help you during challenging times. | Do not Default on the Loan: Defaulting on a loan can have severe consequences, including damage to your credit score and legal actions. Seek assistance if you're facing financial challenges. |
| Do Plan for Repayment: Develop a plan for repaying the loan after graduation, considering your expected income and potential career opportunities. | Do not Choose a Loan Based Solely on Interest Rates: While interest rates are crucial, consider the overall terms, including repayment options and flexibility. |
Monthly EMI
0Principal
0Interest Payable
0Total Payable
0| Year | Principal | Interest | Total Payment | Balance |
|---|---|---|---|---|
| 2025 + | $500 | $50 | $550 | |
| 100 | 100 | 100 | 100 | |
| 2025 + | $500 | $50 | $550 | |
| 100 | 100 | 100 | 100 |
Floating Rate - 9.03%
Fixed Rate – 9.25% for upto 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 15 Years
Floating Rate - 7.24% - 9.24%
Fixed Rate – 9.99%
Processing Fee - Up to 0.75%
Loan Tenure - 5 Years
Floating Rate - 6.8% - 8.8%
Fixed Rate – 9.00% for upto 7 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 0 - 7 Years
Floating Rate - 8.28% - 9.78%
Fixed Rate – 9.59%
Processing Fee - Up to 0.75%
Loan Tenure 4 - 12 Years
Floating Rate - 8.23% - 10.23%
Fixed Rate – 9.99%
Processing Fee - Up to 0.75%
Loan Tenure 1 - 20 Years
Floating Rate - 7.01% - 9.01%
Fixed Rate – 9.50%
Processing Fee - Up to 0.75%
Loan Tenure 1 - 15 Years
Floating Rate - 6.65% - 8.65%
Fixed Rate – 10.00% for upto 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 12 Years
Floating Rate - 7.13% - 8.63%
Fixed Rate - N/A
Processing Fee - Up to 0.75%
Loan Tenure 5 - 10 Years
Floating Rate - 7.84% - 9.84%
Fixed Rate – 7.33% for 1 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 10 Years
Floating Rate - 10.94%
Fixed Rate – 9.00%
Processing Fee - Up to 0.75%
Loan Tenure 1 - 5 Years
Floating Rate - 7.79% - 9.79%
Fixed Rate – 9.99% for Up to 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 15 Years
Floating Rate - 7.52% - 9.52%
Fixed Rate – 9.50% for upto 15 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 15 Years
Floating Rate - 6.75% - 8.75%
Fixed Rate – 7.99% - 11.99% for upto 15 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 0 - 15 Years
Floating Rate - 8.24% - 9.74%
Fixed Rate – 7.50%
Processing Fee - Up to 0.75%
Loan Tenure 1 - 10 Years
Floating Rate - 5.48% - 6.48%
Fixed Rate – 9.50% for 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 12 Years
Floating Rate - 8.08% - 10.08%
Fixed Rate – 13.00% for upto 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 15 Years
Floating Rate - 8.61% - 10.61%
Fixed Rate - N/A
Processing Fee - Up to 0.75%
Loan Tenure - ....
Floating Rate - 8.81%
Fixed Rate – 9.50% for upto 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 0 - 15 Years
Floating Rate - 10.37%
Fixed Rate - N/A
Processing Fee - Up to 1%
Loan Tenure 1 - 10 Years
Floating Rate - 11.25%
Fixed Rate - N/A
Processing Fee - Up to 1%
Loan Tenure 1 - 10 Years
Floating Rate - 8.32%
Fixed Rate – 10.65% for 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 7 Years
Floating Rate - 10.44%
Fixed Rate – 14.00% for Up to 7 Year(s)
Processing Fee - Up to 1%
Loan Tenure 1 - 5 Years
Floating Rate - 7.06% - 9.06%
Fixed Rate - N/A
Processing Fee - Up to 1%
Loan Tenure 1 - 10 Years
Floating Rate - 10.49%
Fixed Rate – 11.00% for Upto 5 Year(s)
Processing Fee - Up to 1%
Loan Tenure 1 - 10 Years
Floating Rate - 11.41%
Fixed Rate – 7.99%
Processing Fee - Up to 1%
Loan Tenure 1 - 12 Years
Floating Rate - 9.96%
Fixed Rate – 11.99% for Above 1 Year(s)
Processing Fee - Up to 1%
Loan Tenure 1 - 15 Years
In almost all banks of Nepal, they ask for offer letter/fee structure from the college/university you’re applying to. So, you need either offer letter/fee structure to apply for Education Loan.
Every bank has its own set of eligibility requirements for education loans, but a few common parameters are:
** This may vary from banks to banks.
** This may vary from banks to banks.
The average tenure for an education loan is between 1-15 years in case of most Nepalese banks. However, for larger loan amounts, some banks may offer a longer tenure of up to 20 years.
• For Land and/or Building:
Maximum up to 60% of Fair Market Value depending upon derived Fair Market Value of Collateral."
• For Fixed Deposit:
Maximum up to 90% of the principal amount of the Fixed Deposit"
Yes, you must have a guarantor to apply for an education loan. If the applicant fails to repay the loan, the guarantor is responsible for repaying it. The guarantor must be immediate Family member & chosen based on their net worth.
Flexible repayment options, only interest to be paid during the moratorium period then only EMI will start.
Moratorium period is a choice, that can be 3 months or 6 months and maximum up to one year. (Moratorium period is a duration when the borrower has to pay only interest rate not principal)
Without having account, one can apply for an education loan but after taking loan, it is obvious to have an account in a related bank.
Most banks levy prepayment penalty on education loan. However, it is best to check with the bank before signing the loan sanction letter.
It may take one week and it depends on urgency as well.
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