Education Loan (fixed, up to 5 yrs)

An education loan in Nepal finances higher studies in Nepal or abroad — covering tuition, hostel/accommodation, living expenses, travel, exam/library/lab fees, books and equipment. It is taken by the student jointly with a parent/guardian co-borrower whose income services the loan, and is almost always a secured loan backed by land/building or a fixed deposit (banks in Nepal generally do not offer collateral-free study-abroad loans at bachelor's level). The bank disburses against the offer letter and fee structure, usually allows an interest-only moratorium during the course, and for study abroad requires a No Objection Certificate (NOC) from the Ministry of Education so foreign currency can be remitted. Repayment is by EMI after the grace period, with tenure stretching up to 15–20 years.