19th August 2025, Kathmandu
NMB Bank’s Home Loan is a comprehensive and flexible financing solution designed to help individuals and families in Nepal achieve their dream of homeownership.
NMB Bank’s Home Loan
The product is tailored to meet the needs of a wide range of borrowers, including salaried individuals, business owners, and those with a steady income from remittance. By offering competitive interest rates, flexible repayment tenures, and high loan limits, NMB Bank aims to make the process of buying, building, or renovating a home more accessible and manageable.
Key Features and Benefits
The NMB Home Loan stands out in the market for several key features that provide significant advantages to borrowers. The loan offers a maximum limit of up to NPR 10 crore, which is particularly beneficial for those looking to purchase high-value properties. For first-time homebuyers, the bank offers a specific limit of up to NPR 2 crore, ensuring they have the necessary capital to get on the property ladder. This high loan limit is complemented by a generous repayment tenure of up to 35 years, which is one of the longest in the market. A longer tenure helps in significantly reducing the monthly EMI burden, making the loan affordable for a larger segment of the population.
Another attractive feature is the bank’s flexibility with the Loan-to-Value (LTV) ratio. For first-time homebuyers, the bank can finance up to 70% of the property’s Fair Market Value (FMV). For other applicants, the LTV ratio is up to 60%. This flexibility in financing allows borrowers to secure a substantial portion of the property’s value from the bank. In the case of new home construction, NMB Bank can finance up to 100% of the construction cost, provided that all necessary building permits and documentation are in place. This is a crucial feature for individuals who already own land and need financing specifically for building their house.
The bank also offers competitive interest rate options. While interest rates can fluctuate, NMB Bank has a specialized product, the NMB Sulav Ghar Karja, with a fixed interest rate of 9.99% for a tenure of up to 10 years, which later converts to a floating rate. In a commendable move toward environmental sustainability, the bank offers a 0.5% lower interest rate for homes that are deemed environmentally friendly or “green homes,” encouraging customers to invest in sustainable living solutions.
Eligibility and Documentation
NMB Bank has set broad and clear eligibility criteria to accommodate a diverse group of applicants. To be eligible, applicants must be Nepali citizens between the ages of 25 and 65 years. The loan is open to a wide range of professions and income sources, including:
- Salaried individuals with a stable income from their employer.
- Self-employed professionals, such as doctors, engineers, and lawyers.
- Business owners with a verifiable and stable business.
- Individuals with a consistent remittance income from abroad.
- The property offered as collateral must be in the name of the borrower, their spouse, parents, or children, ensuring a clear and legal ownership title.
The documentation required for the loan application is comprehensive but straightforward. The bank requires applicants to submit:
Identification Documents: This includes a copy of the citizenship certificate, recent photographs of the applicant, sponsor, or guarantor, and a copy of the individual PAN certificate (if applicable). Applicants also need to provide a residential map, a net worth statement, and a multiple banking declaration. An active account with NMB Bank is a prerequisite for the loan application.
Income-Related Documents: The documents needed vary based on the applicant’s profession. Salaried individuals must provide a salary certificate (not older than 3 months), salary slips, and a 6-month bank statement. Self-employed professionals need proof of practice and income details, while business owners must submit audited financial statements, company registration certificates, and tax receipts.
Collateral Documents: These are crucial for the loan and include the land ownership certificate, cadastral map, and a four boundary certificate. For properties with a building, construction permits, a completion certificate, and the latest revenue receipts are also required.
Loan Coverage and Purpose
The NMB Home Loan is a versatile product that can be used for several purposes related to property. It’s not just for buying a house; it also covers:
- Purchase of land and buildings: This is a standard feature for those looking to buy a new home or an existing property.
- Construction of a new residential house: Ideal for individuals who already own land and require funding to build their dream house from the ground up.
- Home extension and renovation: This is perfect for homeowners who want to expand their current living space or carry out major renovations to upgrade their home’s value and comfort.
- Plot purchase: The loan can also be used to acquire a plot of land for future residential purposes, giving borrowers the flexibility to plan their home construction at their own pace.
By providing a single, flexible loan product that can be used for multiple purposes, NMB Bank simplifies the home financing journey for its customers. The combination of a high loan limit, long repayment period, and low interest rates makes it a highly attractive and reliable option in the Nepali market for anyone looking to secure a comfortable and long-term housing solution. The bank’s focus on transparency, straightforward processing, and diverse eligibility criteria ensures that a wide segment of the population can access home financing with ease and confidence.
For More: NMB Bank’s Home Loan