Nepal - Guidance To Apply Student Loan

ProcedureEdit

In reviewing loan applications, banks will usually take into consideration the applicant's character, capacity to repay the loan and ability to comply with the bank's conditions. To help them evaluate your application, they might ask you to present some form of identification or evidence that you are currently enrolled in an educational institution.
For banks to know how much you will need to borrow, they will need a computation of your tuition fees, accomodation fees if there's any, school materials etc. Banks may also ask you to provide information about your income/parent's income.
Search online for banks that have student loan schemes or offers personal loans for education in Nepal.
Check if you can start your application online. Some banks will ask applicants to complete a preliminary application online. After reviewing the application, a bank representative will contact the applicant to tell them where can they submit their application and what documents will they need to produce.
Some banks have the 'Application for a Loan Form' available on their website, read the form carefully as you fill in the required details and bring it with you when apply for a loan at the bank's branch along with all other required documents.

Things you should know before applying for a loan:

Before you apply for a loan, carefully take note of the interest rate, conditions and repayment scheme that the bank is offering. It will be better if you look into several banks and have done some research regarding the banks application process. One thing that you also need to consider in choosing where to apply for a student loan is the bank's customer service, since this type of loan can take years of continuous correspondence between you and your bank, it will be much better if your bank has a good and accommodating customer service, this will save you from a lot of stress in the future.

Tip: You may not need to accept the entire loan amount the bank is offering you. Since you will be paying back the loan sometime in the future, it will be more ideal if you will only borrow what you need.

Required DocumentsEdit

Some documents that banks may ask loan applicants to produce:

Completed application form
Acceptance letter from University / College / School
No objection letter from Ministry of Education
Mark sheet of last qualifying examination.
Copies of letter conferring scholarship, if any.
Schedule of expenses for the course.
Two copies of recent passport size photograph of the students and their parents/guardian/guarantor.
Copies of foreign exchange permit, where required.
Copies of citizenship/pass port of the students and their parents/guardian/guarantor.
Statement of regular income sources of parents/guardian, along with supporting documents where required.
Brief statement of assets and liabilities of parents/guardian.
Copies of ownership certificates of the proposed property to be mortgaged or Government Securities/FDRs to be pledged.

Note: Documents listed above are just some of the requirements that a bank may ask you to submit, it may vary per bank or some banks may ask you to produce additional documents. Get in touch with the bank for more info regarding required documents.

Office Locations & ContactsEdit

Please list down the office locations that can be approached for applying. External links can also be used specifying office locations.

EligibilityEdit

Student/Education Loans in Nepal - Banks:

Some banks requires applicants for an education loan to be a Nepalese citizen.
Borrower/Guardians should be professionals, salaried individuals, self employed, and have sufficient regular income to service interest.
Courses:
- Graduate / Masters and above
- Professional courses (graduate and above)

Eligibility criteria may vary per bank, it will be better if you will get in touch with a bank representative first to check.

FeesEdit

Some banks may charge loan applicants the following fees:

Processing/Management fee: usually 1% of the loan amount
Prepayment fee: 1% - 2% of the prepaid amount
Commitment fee: can be between .25% to 1% of the unutilized amount
Report Fee

Note: The rates vary per bank, you may check the bank's website to see their updated rates and list of fees they are charging their clients.

ValidityEdit

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to UseEdit

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Sample DocumentsEdit

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Processing TimeEdit

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InstructionsEdit

Student/Education Loans in Nepal - Banks

Some banks in Nepal offers education loans that can help students cover the costs of their studies either in Nepal or abroad. A student loan can be used to pay for tuition fees, books, board and lodging expenses, travelling expense (for those who are studying abroad) and other studies related expenses.

Required InformationEdit

A list which displays the kind of information which is required to complete the procedure.
e.g.
1. Date of Birth.
2. City or County of Birth.

Need for the DocumentEdit

Designed to help students pay for university/college tuition, books, and living expenses, student loan differs from other types of loans with its interest rate substantially lower and repayment of the loan may be deferred while the student is still in school.

Some banks offers this specific type of loan to their customers. A student loan can also be obtained through a government student loan program, this may not be the case in all countries so it will be better to check first.

Following is a guide on how students can apply for a loan or seek financial aid in Nepal.

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External LinksEdit

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OthersEdit

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