Education Loans in Nepal to Study Abroad: A Handy Guide for Aspiring International Students
The idea of going abroad for higher education is super exciting and this is the thought of many Nepali students but the financial aspect of it can be a bit overwhelming. This is a simple guide to get you started if you're thinking about taking an education loan to study abroad because education loans can help make this dream a reality.
What Are Education Loans?
Education loans are basically financial help from banks and other institutions to cover the costs of studying abroad where these loans can cover everything from tuition fees to living expenses, travel and more which are offered by several banks specifically for students who want to study overseas.
Who Can Get an Education Loan?
It's always good to know if you’re eligible for an education loan before you apply and while different banks might have slightly different rules, there are some common grounds among all of them:
You’ve got to be a Nepali citizen.
Banks usually look for decent grades or marks in your past studies.
You’ll need an offer or admission letter from a recognized foreign university.
You might need a cosigner who is a parent or guardian with a stable income to back up your loan.
Some banks may ask for collateral like property or assets to secure the loan.
How Much Can You Borrow?
The amount you can borrow usually depends on things like what course you’re taking, where you’re studying and which university you're attending, so, Nepali banks might typically offer loans ranging from NPR 5 lakhs to NPR 50 lakhs and in some cases even more depending on how much you need and your eligibility.
In most cases, the education loans cover the following:
Tuition Fees: The cost of your program.
Living Expenses: For things like rent, food, and daily expenses.
Travel Costs: Airfare and other travel expenses.
Books and Supplies: Textbooks, study materials, etc.
Insurance: Some loans even cover health and travel insurance.
Interest Rates and Repayment
Since the interest rates on education loans in Nepal can vary and generally range from 9% to 15% per year, it’s always a smart idea to compare rates from different banks so that you don’t end up paying too much interest. After that comes the repayment of the loans which usually starts after you've finished your course or after a grace period which could be 6 months to a year after graduation and you’ll have between 5 to 15 years to pay back the loan depending on the loan amount and terms.
What Documents Do You Need?
When applying, be ready to provide these documents:
Admission Letter: Proof that you’ve been accepted by a foreign university.
Academic Records: Your transcripts and certificates.
Cost Estimate: A detailed breakdown of what your education will cost.
Identification: Citizenship certificate, passport and other IDs.
Income Proof: Salary slips, tax returns or other income proof from your cosigner.
Collateral Documents: You’ll need to provide property documents or other relevant papers If collateral is needed.
Tips for a Smooth Application
Do Your Research: Check out all the loan options and compare interest rates, and repayment terms.
Plan Your Finances: Figure out exactly how much you need to borrow and budget accordingly.
Get Your Documents Ready: Have all your paperwork in order to avoid any delays.
Seek Advice: Talk to financial advisors or education consultants who know the ins and outs of studying abroad.
Things to Consider
Education loans are great but they’re a long-term commitment so you need to think about your future earning potential and make sure you’ll be able to repay the loan because the process can take some time, make sure to start early and plan.
Education loans in Nepal will be a huge help for students who are looking to study abroad and with the right financial support so just make sure you understand the process, meet the eligibility criteria and plan carefully.
