19th August 2025, Kathmandu
NMB Bank offers a comprehensive Education Loan designed to support students pursuing higher studies both in Nepal and abroad.
NMB Bank’s Education Loan
NMB Bank offers a comprehensive Education Loan designed to support students pursuing higher studies both in Nepal and abroad. This loan helps cover a wide range of educational expenses, from tuition fees and accommodation to travel and the purchase of academic materials. The bank aims to eliminate financial barriers so that students can focus on their academic journey.
Key Features and Benefits
The NMB Bank Education Loan is a student-friendly financial product with several key features. It can finance up to 100% of educational expenses, including tuition fees, accommodation, and travel costs. This high financing ratio is particularly beneficial for students going abroad, as it can cover all major costs. For domestic studies, the loan can cover up to 100% of tuition fees. The loan’s repayment tenure is also a significant advantage, with a maximum period of up to 15 years, which makes monthly installments more affordable and manageable for students and their sponsors. The repayment is structured through an Equated Monthly Installment (EMI) system.
The loan also features a competitive interest rate. While the exact rates are subject to change, NMB Bank’s official documents show that the education loan interest rate is determined by the bank’s base rate plus a premium. This structure ensures a flexible and transparent pricing model. For collateral, the bank finances up to 70% of the Fair Market Value (FMV), providing a clear basis for the loan amount.
Eligibility and Documentation
To be eligible for the NMB Bank Education Loan, the applicant must be a Nepali citizen between the ages of 18 and 50 years. The bank requires a sponsor to guarantee the loan, and the sponsor’s income can be from various sources, including salaried employment, self-employment, business, rental income, or remittance. This broad eligibility makes the loan accessible to a wide demographic.
The documentation process is thorough to ensure a smooth application. It is divided into three categories:
Identification Documents: These include citizenship certificates and photographs of the applicant, sponsor, and guarantor, as well as a PAN certificate, residence map, net worth statement, and proof of an active account at NMB Bank.
Income-Related Documents: The specific documents required depend on the sponsor’s income source. Salaried individuals need to provide a salary certificate and recent bank statements. Self-employed professionals must submit a professional registration certificate and proof of at least three years of continuous practice. Business owners are required to provide the latest audited financial statements and company registration documents.
Collateral Documents: Since the loan is collateral-based, applicants must provide land ownership certificates, cadastral maps, building permits (if a building is on the property), and other related property documents.
Loan Coverage and Purpose
The NMB Bank Education Loan is a versatile tool designed to cover a wide array of educational expenses, both within Nepal and internationally. It can be used to pay for:
- Tuition fees and accommodation expenses.
- Examination, library, and laboratory fees.
- The purchase of essential books, instruments, and educational equipment.
- Travel expenses, which are particularly important for students moving abroad.
This comprehensive coverage ensures that a student’s financial needs are met throughout their academic journey, allowing them to focus on their studies without financial stress. The loan serves as a powerful investment in a student’s future, providing them with the financial backing to achieve their academic and career goals.
For More: NMB Bank’s Education Loan