A home loan is a financial arrangement in which a borrower receives a specific amount of money (the loan) from a bank, typically a bank or a financial institution, to purchase or refinance a residential property. The borrower agrees to repay the loan amount over a specified period, usually through regular monthly payments, which include both principal (the original loan amount) and interest (the cost of borrowing).
Do’s | Don’ts |
| Explore for the best interest rate and loan terms. | Do not rush to apply for a loan without comparing options. |
| Provide all necessary and accurate documents during the home loan application process. | Do not provide incomplete and false documents. |
| Understand all the fees associated with the loan. | Do not overlook hidden fees or charges in the fine print. |
| Save for a down payment to reduce the loan amount. | Do not borrow more than you can comfortably afford. |
| Read and understand the loan agreement before signing. | Do not skip the fine print or rush through the paperwork. |
| Create a budget that includes EMI payments. | Do not neglect other financial goals when taking a home loan. . |
| Communicate with your bankif you face financial challenges. | Do not ignore financial difficulties; seek help early if needed. |
| Keep track of your loan statements and payments. | Don't miss payments; it can negatively affect your credit worthiness. |
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 - 8.78%
Fixed Rate – 7.99% for upto 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 25 Years
Floating Rate - 6.74% - 8.74%
Fixed Rate – 8.99%
Processing Fee - Up to 0.75%
Loan Tenure 5 - 10 Years
Floating Rate - 5.8% - 7.8%
Fixed Rate – 7.49% for upto 7 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 0 - 7 Years
Floating Rate - 7.28% - 9.28%
Fixed Rate – 8.59%
Processing Fee - Up to 0.75%
Loan Tenure 1 - 25 Years
Floating Rate - 5.73% - 7.73%
Fixed Rate – 8.99% for 7 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 35 Years
Floating Rate - 7.01% - 9.01%
Fixed Rate – 9.50%
Processing Fee - Up to 0.75%
Loan Tenure 1 - 25 Years
Floating Rate - 7.55%
Fixed Rate - N/A
Processing Fee - Up to 0.75%
Loan Tenure 5 - 15 Years
Floating Rate - 7.34% - 9.34%
Fixed Rate – 7.33% for 1 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 25 Years
Floating Rate - 10.94%
Fixed Rate – 9.00%
Processing Fee - Up to 0.75%
Loan Tenure 1 - 20 Years
Floating Rate - 6.29% - 8.29%
Fixed Rate – 8.99% for Up to 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 30 Years
Floating Rate - 6.77% - 8.77%
Fixed Rate – 9.50% for upto 25 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 5 - 25 Years
Floating Rate - 6.25% - 8.25%
Fixed Rate – 7.99% - 11.99% for upto 15 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 0 - 25 Years
Floating Rate - 8.24% - 9.74%
Fixed Rate – 7.50%
Processing Fee - Up to 0.75%
Loan Tenure 3 - 25 Years
Floating Rate - 6.15% - 8.65%
Fixed Rate – 9.50% for upto 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 25 Years
Floating Rate - 6.27% - 8.27%
Fixed Rate – 8.25% for upto 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 18 Years
Floating Rate - 6.48% - 6.98%
Fixed Rate – 9.25% for upto 5 Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 5 - 15 Years
Floating Rate - 7.32% - 8.32%
Fixed Rate – 10.15%
Processing Fee - Up to 0.75%
Loan Tenure 5 - 15 Years
Floating Rate - 6.08% - 8.08%
Fixed Rate – 9.99%
Processing Fee - Up to 0.75%
Loan Tenure 0 - 20 Years
Floating Rate - 7.61% - 9.61%
Fixed Rate – 8.00% for upto 7 Year(s)
Processing Fee - Up to %
Loan Tenure 1 - 25 Years
Floating Rate - 8.31%
Fixed Rate – 9.00% for 6 years Year(s)
Processing Fee - Up to 0.75%
Loan Tenure 1 - 25 Years
Floating Rate - 6.84% - 8.84%
Fixed Rate – 11.50%
Processing Fee - Up to 1%
Loan Tenure 1 - 15 Years
Floating Rate - 11.25%
Fixed Rate – 13.00%
Processing Fee - Up to 1%
Loan Tenure 1 - 35 Years
Floating Rate - 7.06% - 9.06%
Fixed Rate – 11.99%
Processing Fee - Up to 1%
Loan Tenure 1 - 30 Years
Floating Rate - 9.96%
Fixed Rate – 8.49%
Processing Fee - Up to 1%
Loan Tenure 1 - 15 Years
Floating Rate - 10.44%
Fixed Rate – 14.00% for Up to 7 Year(s)
Processing Fee - Up to 1%
Loan Tenure 1 - 15 Years
Floating Rate - 10.49%
Fixed Rate – 11.00% for Upto 5 Year(s)
Processing Fee - Up to 1%
Loan Tenure 1 - 25 Years
Floating Rate - 11.41%
Fixed Rate – 7.99%
Processing Fee - Up to 1%
Loan Tenure 1 - 30 Years
Floating Rate - 10.37%
Fixed Rate - N/A
Processing Fee - Up to 1%
Loan Tenure 1 - 20 Years
Home Loan is a secured loan given by a bank against the security. In the event of failure to repay by the borrower, the bank can, subject to laws of Nepal, sell the underlying property and recover the principal amount and any outstanding interest thereon.
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:
Market value is the estimated sum that is expected to be received for the property given the current market circumstances.
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