Education Loan

Education Loan

This product has been structured for financing the parents of the needy students intending to pursue higher studies in Nepal as well as abroad.

Education Loan
7 %
Interest Rate
Education Loan
9.28 %
Base Rate
Education Loan
16.28 %
Total Interest Rate

Last Updated Date: May 16, 2022

Nepal Credit and Commerce Bank Ltd

Nepal Credit & Commerce Bank Ltd. (NCC Bank) formally registered as Nepal - Bank of Ceylon Ltd. (NBOC), commenced its operation on October 14, 1996 as a Joint Venture with the Bank of Ceylon, Sri Lanka. It was then the first private sector Bank with the largest authorized capital of NRS. 1,000 million. The Head Office of the Bank is located at Bagbazar, Kathmandu. The name of the Bank was later changed to Nepal Credit & Commerce Bank Ltd., (NCC Bank) on 10th September, 2002, due to transfer of shares and management of the Bank from Bank of Ceylon, to the Nepalese Promoters. NCC Bank completed 23 years of its banking services on October 14, 2019 and recently entered into a historic merger with four Development Banks – Infrastructure Development Bank Ltd., Apex Development Bank Ltd., Supreme Development Bank Ltd. and International Development Bank Ltd. NCC Bank started its joint transaction from January 01, 2017 has now become one of the largest private sector commercial banks. At present NCC provides banking services and facilities to rural and urban areas of the country through its 120 branches, 85 ATMs and 4 Extension Counters scattered all over the country from Far West to Far East. The Bank has developed a corresponding agency relationship with more than 150 International Banks having a worldwide network.

Education Loan


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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