NMB Bank Offers Education Loan for Studies in Nepal and Abroad

2nd November 2025, Kathmandu

NMB Bank Limited is offering a robust and highly flexible Education Loan designed to bridge the financial gap for Nepali students pursuing higher studies both within Nepal and abroad.

NMB Bank Education Loan

This specialized loan product addresses the critical need for accessible funding, ensuring that ambitious students and their dedicated sponsors can secure the resources necessary to invest in quality education. By offering high coverage for tuition and a lengthy repayment tenure, NMB Bank positions itself as a committed financial partner in the academic journeys of the next generation of Nepali professionals.

Key Features: High Coverage and Extended Tenure

The NMB Education Loan stands out in the competitive banking landscape due to its generous financing features, which are strategically aimed at maximizing support for the high costs associated with international and domestic tertiary education.

Financing and Coverage

The bank offers a maximum loan amount that can reach up to 70% of the collateral’s fair market value, as assessed by the bank’s approved valuator. This ensures that the loan size is substantial enough to cover significant educational costs. More importantly, the bank provides remarkably high financing ratios directly linked to the actual cost of education:

International Studies: The loan provides up to 100% of tuition, travel, and accommodation expenses for students pursuing education abroad. This comprehensive coverage significantly minimizes the financial pressure on the student’s family, who must often arrange large sums for living and logistics.

Domestic Studies: For those pursuing higher education within Nepal, the bank covers up to 100% of the tuition fees. This commitment to domestic education underscores the bank’s role in strengthening local educational infrastructure and accessibility.

Repayment Flexibility and Moratorium

Recognizing that students require time to complete their studies and secure employment before starting loan repayment, the bank offers a maximum loan tenure of up to 15 years. This lengthy term ensures that the monthly financial obligation, calculated on an Equated Monthly Installment (EMI) basis, remains manageable. Furthermore, though not explicitly detailed in the provided information, NMB Bank has been known to offer a moratorium period, which typically covers the entire duration of the course plus an additional buffer period (often six months to one year, or up to four years in some recent offerings). The moratorium is a crucial feature that allows the student to defer principal repayment until they are financially established, greatly alleviating initial post-graduation financial stress.

Current Interest Rate Environment

As a commercial bank, NMB Bank structures its loan pricing based on the Nepal Rastra Bank’s mandated Base Rate plus a risk premium (spread). As of recent interest rate publications (Bhadra 2082/August 2025), the premium for the Education Loan product typically ranges from 2.5% to 4.5% over the Base Rate. Prospective borrowers must carefully check the bank’s latest published interest rate notice to determine the exact floating rate applicable at the time of application, as rates fluctuate based on market conditions.

Eligibility and Scope of Covered Expenses
The NMB Education Loan is inclusive, targeting a wide demographic of Nepali citizens who demonstrate a stable repayment capacity, either through their own income or that of their sponsors.

Eligible Borrowers and Sponsors

The loan is open to Nepali nationals who are between the ages of 18 and 50 years. Crucially, the bank accepts a variety of income sources from the sponsors, acknowledging the diverse economic backgrounds of Nepali families:

• Salaried Individuals
• Self-employed Professionals (e.g., Doctors, Engineers, Accountants)
• Businessmen
• Individuals with verifiable Rental Income
• Individuals supported by Remittance holders

This broad eligibility criteria ensures that a wide net of financial guardians can support the student’s educational aspirations. The bank’s willingness to accept multiple forms of stable income helps to enhance the application’s chance of approval.

Covered Educational Expenses

The loan’s funding scope is comprehensive, covering all major costs associated with an educational career:

Academic Fees: This includes the primary expenses of tuition fees and specialized charges such as examination, library, and laboratory fees.

Logistics and Living: Essential living costs are covered, including accommodation (especially crucial for studies abroad) and travel expenses.

Study Materials: The funds can also be utilized for the purchase of books, specialized equipment, or necessary instruments, ensuring the student has all the tools required for their course.

Mandatory Documentation and Collateral Requirements

A successful loan application hinges on the thorough and accurate submission of a comprehensive set of documents, which NMB Bank classifies into four primary categories for verification and risk assessment.

1. Identification and Personal Documents
All applicants and sponsors must provide basic identification, including a Citizenship copy, a passport-size photograph, PAN (if applicable), proof of residency via a residence map, a net worth statement, and the applicant’s existing NMB Bank account details.

2. Income Proof and Financial Records
The specific documentation required depends on the income source, ensuring detailed verification:

Salaried: Requires a salary certificate, the latest two salary slips, six months of bank statements detailing salary credits, and relevant tax documents.

Self-Employed/Business: Requires a registered professional certificate, proof of continuous practice for three years, detailed audited financials, bank statements, registration certificate, Memorandum of Association (MOA) / Articles of Association (AOA) for businesses, and all necessary tax receipts.

Other Income: Documentation includes lease receipts and title deeds for rental income, pension slips, interest statements, and corresponding tax documents.

3. Collateral Security
The loan is secured against immovable property, requiring extensive documentation of the collateral:

Property Title: The Land Ownership Certificate (Lal Purja) is essential.

Technical Maps: A blueprint or trace map, along with the four-boundary certificate.

Valuation and Legal: Documents certifying land classification, evidence of construction permission/completion certificate (if a building is involved), the collateral transfer deed, and the latest land revenue receipts.

This comprehensive documentation process, while meticulous, ensures compliance with regulatory standards and facilitates a transparent evaluation for both the bank and the applicant, paving the way for the student to pursue their academic goals unhindered by financial stress.

For More: NMB Bank Education Loan