Education Loan Interest Rates — Nepal, Baisakh 2082
| Bank | Floating Rate |
|---|---|
| Rastriya Banijya Bank | 5.97% |
| Global IME Bank | 6.38% |
| Everest Bank | 6.45% |
| Siddhartha Bank | 6.53% |
| Citizens Bank | 6.53% |
| Fixed rate (most banks) | ~10% |
Source: Nepal Rastra Bank base rate publication and individual bank rate cards, Baisakh 2082.
Maximum Loan Amount and Repayment Terms
Under Rastriya Banijya Bank's scheme, the maximum loan amount is NPR 80 lakhs, with a repayment tenure of up to 15 years and a 12-month moratorium after course completion before repayments begin. Other banks offer broadly comparable structures, though exact maximums and moratorium periods vary — always confirm current terms directly with the bank.
What Education Loans Typically Cover
Nepal education loans for UK study generally cover: tuition fees, the UK visa fee (£558), the Immigration Health Surcharge (£776/year), living costs (up to the UKVI-mandated maintenance figure), and travel expenses. Confirm with your specific bank exactly which costs are included in your sanctioned amount before finalising your budget.
Collateral Requirements
Most Nepali banks require collateral once the loan amount exceeds a certain threshold — commonly around NPR 7.5 lakhs, though this varies by institution. Below this threshold, some banks may offer unsecured or partially secured options, particularly for strong academic profiles or with a guarantor. Always clarify collateral requirements and valuation processes early, as property valuation can take several weeks.
Choosing Floating vs. Fixed Rate
Floating rates (currently as low as 5.97% at RBB) move with the bank's base rate over time, meaning your repayments could rise or fall. Fixed rates (around 10% at most banks) lock in your rate for the loan term, offering predictability at a higher starting cost. For most students, floating rates are the more commonly chosen option given the current rate gap, but your risk tolerance and repayment horizon should guide the decision.
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