31st October 2025, Kathmandu
Garima Bikas Bank Limited offers a robust and flexible Home Loan product, strategically designed to empower aspiring homeowners in Nepal to acquire land, purchase existing residential property, or construct their dream home.
Garima Bikas Bank Home Loan
This financing solution is structured with long-term financial planning in mind, providing extensive support to individuals with reliable and stable income streams, ensuring they can confidently take the step toward property ownership. The loan’s features, including an exceptionally long repayment tenure and high financing coverage, position it as a highly competitive option in the Nepali development banking sector.
Core Financial Parameters and Loan Features
The Garima Bikas Bank Home Loan is distinguished by its generous limits, extended repayment period, and flexibility in disbursement, catering to diverse residential financing needs from modest renovations to large-scale construction.
Loan Limit and Scope: The loan is available for amounts starting from NPR 0.4 million (Four Lakh Rupees) and extends up to the Single Obligor Limit (SOL). The SOL, as mandated by the Nepal Rastra Bank (NRB), represents the maximum exposure a bank or financial institution can have to a single borrower and is linked to the bank’s core capital. This high ceiling ensures that even significant, large-scale residential projects can be accommodated under this scheme.
Maximum Loan Tenure: Borrowers are offered an impressive maximum repayment period of up to 30 years. This extended tenure is a key highlight, as it drastically reduces the Equated Monthly Installment (EMI), allowing for a more comfortable and less strenuous monthly financial commitment, which is crucial for long-term household budgeting.
Financing Coverage and Collateral: For the specific purpose of building construction, the bank is prepared to finance up to 100% of the total estimated construction cost. This high coverage is exceptionally supportive for those building from the ground up. The loan must be secured against the registered mortgage of the property being financed itself. In certain cases, the bank may also accept other unrelated collateral security, providing flexibility for borrowers with alternative assets.
Current Interest Rate Outlook: While interest rates are subject to market and regulatory changes, recent offerings suggest Garima Bikas Bank has provided its Home Loan product at a fixed interest rate of 11.99% per annum for a promotional duration of up to seven years. Standard Home Loan interest rate ranges are typically more varied, often based on the loan tenure, but this recent fixed-rate option highlights the bank’s effort to provide certainty in borrowing costs.
Flexible Repayment Structure and Eligibility
The bank provides two distinct repayment structures tailored to the nature of the loan disbursement, ensuring a borrower-friendly approach throughout the project lifecycle.
Lump Sum Disbursement Repayment: If the total loan amount is released to the borrower in a single lump sum (typical for outright property purchases), the repayment is based on a standard Equated Monthly Installment (EMI) basis, simplifying the debt-servicing schedule.
Phase-wise Disbursement Repayment: For loans released in phases (most common in residential construction projects), the borrower is required to pay only the interest on the disbursed amount until the loan is fully disbursed. Once the full loan amount has been released, the standard EMI calculation commences, based on the remaining tenure of the loan. This phase-wise structure is highly beneficial as it limits the initial repayment burden during the construction period when the borrower may also be incurring other project costs.
The loan is accessible to a broad array of individuals demonstrating a stable and reliable income source, including:
Employed Professionals: This includes individuals in secure occupations such as Doctors, Engineers, Bankers, Chartered Accountants, and Teachers.
Corporate Employees: Staff members of established corporate business houses are eligible.
Business Owners and Self-Employed: Individuals running their own ventures or working as self-employed professionals with verifiable income.
Required Documentation for a Streamlined Application
A complete set of documentation is essential for swift loan processing and approval. Applicants must prepare both personal and property-related documents:
Personal and Identity Documents: A completed bank application form and copies of guarantors’ citizenship certificates are mandatory.
Income Verification: Detailed documents proving income sources are critical, which may include salary slips, appointment letters, business registration papers, and audited financial statements, depending on the applicant’s profession.
Property and Legal Documents: This category is extensive and includes the title deed of the property, the latest land revenue payment receipts, and the four boundaries certificate of the collateral.
Technical and Valuation Documents: For construction or purchase, the bank requires the map of the current residence and the property being financed, the blueprint and trace map of the land, and a valuation or estimated cost report prepared by a certified valuator.
Construction/Purchase Specifics: For construction, applicants need construction permission from the competent local authority, along with architectural or engineering drawings. For outright purchase of a building, a completion certificate is required.
By requiring a declaration that loan funds will be utilized exclusively for acquiring and developing residential property, Garima Bikas Bank ensures the loan aligns with the objective of promoting homeownership. The Garima Home Loan is thus a comprehensive, secure, and strategically sound option for individuals looking to achieve their residential property goals in Nepal.
For More: Garima Bikas Bank Home Loan