Education Loan

Education Loan

If you're thinking about pursuing higher studies abroad or even some professional/technical courses in Nepal, fret not, you've come to just the right place! While the process might seem like a daunting task and one to give you a major headache, we bring you simplified Education loan-facility, that aims to finance students who wish to pursue higher education. Leave it to us to work out the details and documentation and focus on pursuing the course of your choice and secure a great education!

Education Loan
6.5 %
Interest Rate
Education Loan
9.85 %
Base Rate
Education Loan
16.35 %
Total Interest Rate

Last Updated Date: May 17, 2022

Kumari Bank Ltd

Kumari Bank Limited is a commercial bank existing as the fifteenth industrial financial institution of Nepal by beginning its banking operations from Chaitra 21, 2057 B.S (April 03, 2001) with an objective of offering competitive and current banking services financial market. Kumari Bank Limited has acquired Kasthamandap Development Bank, Mahakali Bikas Bank, Kakrebihar Bikas Bank, Paschimanchal Finance. Kumari Bank Limited is currently trading on Nepal Stock Exchange with the symbol KBL. KBL has provided a dividend return of 8.5 percent in the fiscal year 2074/75. Kumari Bank Limited has appointed Kumari Bank Limited as its share registrar. The Bank has been imparting both Domestic and International Visa Debit Card and Credit Card, accessible in all VISA linked ATMs in Nepal and India, presenting extra offerings to the clients thru its 108 ATMs and quite a few POS terminals by exemplifying exact company governance, proactive danger management practices, and most efficient corporate social responsibility. Along with this, the Bank has additionally been presenting today's Mobile Banking, Internet Banking, Viber Banking, and QR PaymentsKumari Bank Limited have been providing wide-range of modern-day banking services through 221 factors of illustration located in a number of urban, semi city section and rural components of the country, with 186 branches, thirteen extension counters and 22 Branchless Banking Units. The bank aims to supply progressive products and offerings to their customers, use these innovative products to reap financial inclusion, and do so by exemplifying exact company governance, proactive danger management practices, and most efficient corporate social responsibility.

Education Loan

REQUIRED DOCUMENTS

Documents required for Education Loan


  1. Loan application firm duly filled and signed in standard format of the Bank.
  2. Current account of the applicant / borrower.
  3. 2 Passport size photo of borrower and joint-borrower.
  4. Must be 18 years old or above and a holder of Nepali Citizenship.  
  5. Should show the income source of guardians to repay the installment amounts. 
  6. Photocopy of all academic records above SEE(Secondary level (transcript & character certificates).
  7. Should be admitted to respective colleges and institutions and proof of enrollments must be submitted.
  8. Be the student of Undergraduate/Bachelors, Graduate/Masters & above, or any other professional courses.
  9. Photocopy of passport with visa for studying abroad except India.
  10. Photocopy of admission confirmation letter/acceptance letter from the university/college incorporating admission fee, tuition, accommodation and others.
  11. Photocopy of land ownership certificate (Lalpurja) to be placed as collateral.
  12. Salary Certificate/Rental Contract/Financials of business/Other contract agreements if any, of parents.
  13. Photocopy of Tax/PAN/VAT certificate along with registration certificate (For self-employed).
  14. Other documents as requested by banks

What Is Education Loan?

An education loan is a sum of money borrowed to finance post-secondary education or higher education-related expenses. 

Education loans are intended to cover the cost of tuition, books and supplies, and living expenses while the borrower is in the process of pursuing a degree. Payments are often deferred while students are in college and, depending on the lender, sometimes they are deferred for an additional six-month period after earning a degree.

Types of Education Loans

Although there are a variety of education loans, they can be broken down generally into two basic types: federal loans which are provided by the government and other one is private loans.

Federal Student Loans

Various types of federal student loans exist, including direct subsidized, direct subsidized, and direct consolidation loans. If offered and accepted, funds will be issued by the federal government to the specified university to cover the student's academic costs. If there are remaining funds available, they will be disbursed to the student. A student may use these funds to cover other expenses that they incur while pursuing a degree. If a student qualifies for subsidized loans, the borrower’s interest will be covered while they are in school.

Private Student Loans

In some cases, the student loan package that a student is issued through the federal government may suggest that the borrower applies for additional funds through private lenders. Private student loans also include state-affiliated lending nonprofits and institutional loans provided by the schools.

Students can apply directly to individual private-sector lenders for funds. Similar to federal funds, the approved amount will be influenced by the school. If approved, funds for educational expenses will first be disbursed to the school to cover all bills expenses of students.Borrowers can apply directly to individual private-sector lenders for funds. Similar to federal funds, the approved amount will be influenced by the school a borrower is attending. If approved, funds for educational expenses will first be disbursed to the school to cover any pending bills; the remaining amount is then sent directly to the borrower.

How an Education Loan Works 

Education loans are issued for the purpose of attending an accredited college or a university and pursuing an academic degree. Education loans can be obtained from the government or through private-sector lending sources. Federal loans often offer lower interest rates, and some also offer subsidized interest. Private-sector loans generally follow more of a traditional lending process for application, with rates that are typical higher than federal government loans.

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