Education Loan

Bank of Kathmandu provides education loan services for students (tuition fee, accommodation expenses, and travel expenses), with the assist of Parents or any other sponsor from one house family members.

Eligibility Criteria for Education Loan:

Student (Applicant):

• Should be a Nepalese Citizen.
• Should have received offer letter of admission from the institute / University.

Parents / Guarantor/s:

• Should have a permanent residential address.
• The guarantor/parent should be from one house family member.

Eligibility in terms of Income of the Students / Parents / Guarantors:

• Salaries from individuals work
• Self-employed professionals
• Self-employed businessmen
• Any other individual having acknowledged the source of income e.g. lease, pension, business, etc.

Eligible Courses for Education Loan:

Studies in Nepal:

• Professional courses: MBBS, BDS, Engineering, Veterinary, Computer and Technology, Management, Professional Accounting / Finance related courses such as ICWA, CA, and CFA.
• Post Graduate Degree Courses: Masters, M. Phil and PhD.

Studies Abroad:

• Graduation/Post Graduation (PG) level studies related to professional and technical related courses.
• Diploma studies related to professional and technical courses.
• Certificate Level Courses.
• Language learning courses.
• Training courses such as a pilot.

Eligible Expenses

• Fees payable to the institute/hostel/accommodation
• Examination/ Library / Laboratory Fee
• Purchase of books / equipment / instruments.
• Caution deposit/ building fund / refundable deposit.
• Travel expenses/ passage money for studies abroad.
• Purchase of computers necessary for completion of the course.

Age Criteria

• age of the applicant - 16 years
• Age of the applicant - 50 Years.

Loan Amount

• loan amount - NPR 150,000/- (Nepalese rupees 1.5 million).
• Loan amount - NPR 10,000,000/- (Nepalese rupees 10 million only).

Financing %:

• Maximum of 90% of an institute, hostel or accommodation expenses; In case of MBBS/MD courses in Nepal, the loan amount is allowed up to 100% of the total tuition fees only. On the other hand, this should not exceed 90% of the total cost of the MBBS/MD program.
• In addition, not exceeding NPR 1,000,000/- (Nepalese Rupees 1 million) for other expenses such as airfare, computer and other incidental.

Tenure:

• Maximum 10 years (Exclusive of moratorium period of 12 months).

Repayment of Education Loan:

• Equated Monthly Installments (EMI) over approved loan tenure.

Basic Documentation for Education Loan:

• Loan Application form duly filled by the applicant (Students) and co-signed by both parents/guarantor.
• Photo Copy of academic certificates of the applicant (Student)
• Offer letter of admission from the institution or university. In case of admission of new session under MBBS /MD courses in Nepal, the appropriate student should submit eligible documents for an appearance in the entrance exam. If institutions entail offer letter of a permitted loan facility from the Bank before securing admission, the letter signifying secured admission should be obtained prior-disbursal.
• Detailed address (with diagram) of the residence of the parents/guarantor and student.
• 1 photograph of the parents/guarantor and 2 photographs of the student.
• Citizenship Certificate (CC) of the student / parents / guarantors.
• Net worth statement of the student (applicant)/guarantor/sponsor, as applicable.
• Details of the security being offered as collateral.
• Title Deed, 4 boundary certificate, trace map, revenue receipt of land or land and building offered as collateral. In case of Loan for Against Building (LAB) as a security within Municipality, Rural Municipality documents certifying fulfillment of mandatory standards set by the competent authority such as Naksa Pass, approval from concerned authorities, building construction completion certificate should be obtained.

Income statement or cash flow details of the applicant/ parents/guarantor (where applicable) for Education Loan:

In case of salaried individuals:

• Certification of salary or salary statement (SS), tax paid receipt from the employing organization/company.
• Bank statements, as applicable.

In the case of self-employed professionals:

• Registration document from concerned professional association/council.
• Detail of income source/ profession.
• Bank Statement, as applicable.

In case of self-employed businessman:

• Business Registration Document (Including PAN/ VAT registration Certificate)
• Income Tax (IT) Clearance Certificate.
• Latest Audited Financial Statement
• Bank Statement, as applicable.

In case of other sources:

• Latest lease-payment receipt or agreements, title deed of the property, as applicable.
• Details of other lease income.
• Pension slip, interest received statement etc.
• Bank statements, as applicable.