Nabil Bank’s Housing Loan – Turn Your Dream Home into Reality

3rd November 2025, Kathmandu

Nabil Bank Limited, one of Nepal’s foremost commercial banks, is actively helping individuals and families realize their lifelong aspiration of owning a home with its meticulously designed Housing Loan scheme. Recognizing that a home is far more than just a property—it is a symbol of stability, security, and a vital lifetime investment—Nabil Bank has structured its financing to be not only easy and transparent but also emotionally mindful, accommodating the long-term nature of homeownership with exceptional flexibility.

Nabil Bank Housing Loan

The loan offers competitive features, high financing limits, and the longest available tenure in the Nepali market, positioning it as an ideal solution for a diverse range of property acquisition and development needs.

Key Features for Flexible and Long-Term Financing

The Nabil Housing Loan is engineered to provide maximum financial comfort and operational ease throughout the entire lifecycle of the loan, from the initial application to the final repayment.

Unmatched Tenure and Moratorium Period

A flagship feature of this loan is its flexible tenure of up to 35 years. This exceptional period is among the longest offered by major financial institutions in Nepal, drastically reducing the monthly financial burden for borrowers and making large-scale housing investments significantly more accessible. The entire repayment structure is based on the convenient Equated Monthly Installment (EMI) system, with interest calculated only on the reducing balance. This method ensures that as the principal amount decreases with each payment, the interest portion of the EMI also falls, providing faster equity build-up and saving the borrower substantial costs over the loan’s life.

For those engaged in the construction of a new home, the bank offers a valuable moratorium (grace) period of up to 12 months. This provision allows borrowers to defer the commencement of their EMI payments until the property is nearing completion or occupancy, providing critical financial relief during the construction phase when costs are highest and income streams may be strained.

Simplified Process and Guidance

Nabil Bank emphasizes a quick and transparent loan processing experience. The entire process is backed by a wide branch network, ensuring accessibility across the country. Recognizing the complexity of housing finance, the bank also provides personal guidance and counseling throughout the application and disbursement stages, making the process less daunting for first-time borrowers. This commitment to customer support, coupled with simplified documentation requirements, removes many of the common hurdles associated with securing a mortgage in Nepal.

Comprehensive Loan Overview and Financing Terms

The Nabil Housing Loan is not a one-size-fits-all product; it is structured to cover various property-related needs, each with specific financing limits and terms. The maximum loan amount available across several categories, including Land Purchase, Land & Building Purchase, Construction, and Loan Takeover, is a high NPR 50 million, showcasing the bank’s capacity to support large investments.

Specific Financing Scenarios

• Land Purchase: Customers can acquire land with financing of up to 80% of the distress value or 50% of the fair market value (FMV), whichever valuation is lower.
• Land & Building Purchase: For acquiring a ready-made property, financing can reach up to 80% of the distress value or 70% of the FMV, whichever is lower, with a maximum tenure of 35 years.
• Construction: The loan can cover up to 100% of the construction cost, provided the underlying land value is deemed sufficient by the bank’s valuators. This is a significant advantage for those who already own land.
• First Home Buyer: Dedicated support is provided for those buying their first home, offering financing of up to 80% of the FMV with a maximum loan amount of NPR 30 million. This is applicable for personal-use homes with an area not exceeding 3,000 square feet.
• Extension/Renovation: Smaller-scale needs are also covered, with loans of up to NPR 10 million available for extension or renovation purposes, covering up to 70% of the FMV of the property, though this category has a shorter maximum tenure of 20 years.

Eligibility, Income Standards, and Collateral Requirements

To ensure responsible lending, Nabil Bank maintains strict yet clear criteria concerning the applicant’s financial capacity and the collateral’s legal standing.

Applicant Eligibility

Applicants and co-applicants must be between 18 and 70 years old at the time the loan matures. Crucially, the bank requires evidence of a stable income source that can support the long-term repayment commitment. This includes individuals in permanent employment (salaried) and self-employed individuals whose businesses have been in operation for at least two years. The total monthly EMI across all loan obligations, including the new housing loan, must not exceed 60% of the borrower’s gross income. All reported income must be transparently supported by bank transactions and tax receipts.

Collateral Conditions and Security

The property offered as collateral must meet specific legal and logistical requirements. It must possess a legal access road of at least 8 feet motorable width, with a requirement of 10 feet if the land area is 1 ropani or more. The property must be legally clear, meaning it should be free from Guthi/Mohi issues and located at a safe distance from high-tension electricity lines. The bank maintains a strict policy: third-party collateral is not accepted, ensuring the collateral is directly owned by the applicant or co-applicant. Furthermore, any building financed must be adequately insured against fire, earthquake, terrorism, etc., to protect the bank’s investment and the borrower’s asset.

Fees and Prepayment Flexibility

The bank’s fee structure is transparent. A Loan Administration Fee of 0.75% of the loan amount is applicable, and a Commitment Fee of 0.15% of the unused amount is charged for construction loans. Nabil Bank also offers competitive prepayment fee structures that reward long-term commitment: the fee significantly reduces from 0.75% (within 2 years) to 0.375% (2 to 5 years), and further to a minimal 0.15% after 5 years, providing borrowers with flexibility to close the loan early without incurring heavy penalties.

By offering comprehensive financing, unmatched tenure, and a commitment to customer support, the Nabil Housing Loan provides a powerful pathway for Nepali families to make their dream of secure homeownership a reality.

For More: Nabil Bank Housing Loan