Education loan for studying abroad

Education Loan Assistance

Nepal is undeniably a country from which many students wish to pursue higher education around the world. They choose to study in Australia, New Zealand, Canada, the United Kingdom, and the United States. Since Nepalese students are so interested in studying abroad, education loans have become common. So far, the cost of education has been rising year after year around the world.

Loans for Higher Education

Before applying for admission, parents who want their children to study abroad must make specific financial arrangements. Many parents can put money into a savings account and provide funds or investments for their children's education. Despite this, students may face financial difficulties, necessitating financial aid such as an education loan to meet their needs. Thus, an education loan is beneficial in this situation, as it assists in bridging the gap between the shortfall and the necessary amount.

By education loan, you alleviate pressure on your family finances. When you take out the loan, the lender gives you a grace period (moratorium period) during which you can focus on your studies and prepare for your future career before beginning to pay your EMIs.

The Nepalese government, banks, and other financial institutions have simplified the education loan process and offered competitive schemes to Nepalese students seeking a brighter educational future. In Nepal, numerous banks provide education loans to aspiring students. However, students must evaluate the study loan based on various factors, terms and conditions. The applicant should understand total loan cost, monthly instalments, interest rates, loan processing costs, subsidies, grace periods, term periods, loan processing times, repayment schemes, moratorium periods, etc. As a result, students must investigate several banks and conduct studies on the application process and foreign exchange rates.

Aus Studies Counsellors will facilitate you to get education loans provided by various banks. They are well informed about the education loan procedures, who can provide you a basic idea and refer you to the most suitable bank.

How can an education loan help you?

In Nepal, an education loan represents financial assistance for students who want to go for studying abroad. The purpose of the loan is to cover all the costs of completing an education. The following elements are included:

1. University/school/hostel expenses
2. Research and library usage expenses
3. The costs of computers, books and other items
4. Travel expenses
5. Health coverage

The borrowers have to meet criteria and agree to a few conditions offered by the loan provider to benefit from education loans in Nepal.

Criteria for Applicant

1. The candidate must be a resident of Nepal
2. The applicant must have a minimum education of 10+2
3. The candidate must have Offer Letter from a college or university
4. The applicant must be 18 or older years of age
5. The applicant must alternatively have a security guarantee
6. Parents and guarantors must have a permanent address
7. The guarantor should be one member of the household
8. Income as an employed or skilled self-employed person
9. Income as self-employed businessman/trader/investor

Educational loan acceptance in Nepal necessitates the submission of supporting papers. The banks ask for the documents, and the list may vary according to their rules and regulations.

Eligible Expenses

1. Fees are payable to the institute and accommodation provider
2. Library Fee/ Lab Fee / Exam Fee
3. Purchase of books and equipment
4. Money for travel expenses for studying abroad
5. Purchase of computers 

Loan Amount

Usually, banks in Nepal offer a Minimum of NPR 150,000/- (Nepalese rupees one hundred fifty thousand only) to a Maximum NPR of 10,000,000/- (Nepalese rupees ten million only). But this may vary from bank to bank policy.

Tenure

Maximum ten years (Exclusive of moratorium period of 12 months)

Repayment

Equated Monthly Installments (EMI) over the loan tenure approved

Basic Documentation

1. Loan Application form of the applicant and co-signed by both parents/guarantor
2. Copy of academic documents of the student (applicant)
3. The student's residence and parents/guarantor exact address
4. Student and the parents/guarantor photographs
5. Citizenship Certificate from student, parents and guarantors
6. Detail of income source/ profession
7. Bank Statement, as applicable
8. Details of the security for collateral in the bank
9. Four boundary certificates, a title deed, a trace map, and a revenue receipt of land or land and buildings

In case of education loan against building as security within Municipality, documents certifying the fulfilment of required standards set by the relevant authority such as building construction completion certificate, Naksapass, approval from concerned authorities are needed.

We will help you arrange all the required documents and communicate with the bank on your behalf as a part of our service.

Best of luck