Education is central to the human resources development and empowerment in any country. National and state level policies are framed to ensure that this basic need of the population is met through appropriate public and private sector initiatives. Government is also working for providing primary education to all. cost of education has been going up in recent times with the rising in tuition costs of colleges and universities, students are borrowing funds to finance their higher education within or outside Nepal. Education loan is an attempt to bring out a viable and sustainable bank loan scheme to meet the aspirations of our society.
Knowledge and information would be the driving force for economic growth in the coming years. The current rate of economic growth of the country demands technically and professionally trained manpower in large numbers. To achieve the dream of pursuing higher education with hassle free financial condition, education loan has become an easy financial solution for the students willing to pursue their higher education both abroad or in Nepal. It is greatly flexible loan provided against the landed collateral, which shall cover entire expenditure from admission fee, tuition fee, and cost of stationary to logistic expenditure.
Purpose
The main purpose of the loan is to support financing the education and accommodation cost of study within Nepal or abroad for children of individual borrower.
Loan Limit
NPR 5mn or 80% of total cost of education prescribed by concerned college and university as well as accommodation cost whichever is lower.
Loan to Value Ratio
Total limit must be restricted to 50% of FMV of the property or as specified by NRB from time to time.
Tenure of Loan
Tenure of loan shall be maximum of 10 years
Repayment Mode
On EMI/EQI basis subject to the nature of the income.
Eligibility
Should be Nepalese citizen having regular source of income in the family and are legally fit to enter into contract with the bank.
Interest Rate
Interest Rate shall be applicable as determined by ALCO of the bank from time to time.
Documents required but not limited to
1. Application form from applicants/ co –applicants along with photo.
2. Copy of citizenship certificate of applicant/co-applicant/guarantor.
3. Certificate of undivided family members from competent authority.
4. All academic certificates of the children of the borrower who is pursing higher education.
5. Details of costs with supporting pro forma invoice/letter from college/university and supporting bills for accommodation cost to be incurred by the student during course of study.
6. Documents related to other income such as salary certificate, rental agreements papers, pension book etc of the applicant and co-applicant.
7. Net worth statement of applicant/co-applicant/ personal guarantor.
8. Property related documents such as land/buildings/apartments ownership certificates, property deed, four boundary certification of property, land revenue receipt, blue print of the land, approved structure of building, construction completed certificate etc.
9. If income from business is used to repay the loan, business related documents such as, registration certificate, article of association, memorandum of association, tax clearance certificate, PAN certificate; latest audited financial statement and projected financial statements of the firm.
10. Any other documents to justify the loan that may be decided by the management from time to time or as may be required by regulatory requirement.
11. All the documents and copies of the documents should be signed by the applicant/ co-applicants to authenticate the documents.
