Education Loan Nepal
for UK Study

Why Nepali Students Need an Education Loan for UK Study

A one-year UK master's degree typically costs NPR 55–90 lakhs in total — tuition fees (£10,000–£30,000), living costs (£10,827–£14,130), visa fees, Immigration Health Surcharge (IHS £776/year), and travel. At NPR 195 per pound, this is a significant financial commitment for most Nepali families.

An education loan from a Nepali bank lets you fund your degree without liquidating family assets, while keeping funds in your bank account to satisfy the 28-day bank balance rule for your Student Visa.

Education Loan Interest Rates — Nepal Banks 2026

Rates are as of Baisakh 2082 (April–May 2026). Floating rates change quarterly with Nepal Rastra Bank's base rate. Always confirm current rates directly with your chosen bank before applying.

* All rates are floating as of Baisakh 2082. Fixed rates are approximately 10% across most banks. Confirm current rates at your nearest branch before applying.

What Does an Education Loan Cover for UK Study?

Nepali education loans for UK study can cover all major expenses:

• University tuition fees — typically £10,000–£30,000/year depending on course and institution
• UK Student Visa application fee — £558
• Immigration Health Surcharge (IHS) — £776 per year of your course
• Living costs and accommodation — £10,827 (outside London) to £14,130 (London) per year
• Return airfare — Kathmandu to UK and back
• Study materials and equipment

Eligibility for Education Loan Nepal

Student eligibility

• Nepali citizen (citizenship certificate required)
• Admission or offer letter from a recognised foreign university
• Completed academic qualifications (SEE, +2/NEB, bachelor's as applicable)
• Valid passport
• NOC from MoEST (see our NOC Nepal guide)

Collateral requirements

• Loans up to NPR 7.5 lakhs: may be possible with a guarantor only (no property collateral)
• Loans above NPR 7.5 lakhs: collateral required — residential/commercial property or fixed deposit
• Property must be in Nepal and free of existing encumbrances
• Bank conducts a valuation of the collateral before sanctioning the loan

How to Apply for an Education Loan — Step by Step

1. 1

   Secure your UK university offer letter

   Banks require an official offer letter. HOA helps you apply to 153 UK partner universities. Even a conditional offer is accepted by most banks to begin the loan application process.

2. 2

   Obtain your NOC from MoEST

   Apply at noc.moest.gov.np — NPR 2,000, 1–5 days. Required by the bank before loan disbursement and by UKVI for your visa.

3. 3

   Compare rates and choose your bank

   Visit 2–3 banks — at minimum, compare RBB (5.97%), Global IME (6.38%), and Everest (6.45%). Confirm current rates, maximum loan amounts, and collateral requirements in person.

4. 4

   Gather and submit all documents

   Submit: offer letter, NOC, passport, citizenship (student + collateral owner), transcripts (SEE/+2/bachelor), cost estimate, collateral property documents (land registration certificate, tax clearance).

5. 5

   Bank valuation and sanction letter (2–4 weeks)

   The bank appraises your collateral and reviews your application. On approval, you receive a sanction letter confirming the loan amount, interest rate, tenure, and disbursement schedule.

6. 6

   Use disbursed funds for visa bank balance

   Your loan disbursed into your bank account satisfies the 28-day bank balance requirement: £10,827 (outside London) or £14,130 (London) — approximately NPR 21.1–27.6 lakhs, for visa applications from 30 November 2026.

7. 7

   Transfer tuition and apply for visa

   Transfer tuition fees to your UK university through your bank (using your NOC). Then submit your complete UK Student Visa application.

Documents Required for Education Loan in Nepal

• Completed loan application form (bank's own form)
• Citizenship certificate — student and collateral property owner (both sides)
• Valid passport (bio-data page)
• UK university offer letter or admission letter (official letterhead)
• Academic transcripts: SEE/SLC, +2/NEB Grade 12 marksheet, bachelor's transcript (if applicable)
• NOC from MoEST (noc.moest.gov.np)
• Detailed cost estimate: tuition + IHS + living costs + visa + travel
• Collateral documents: land registration certificate (lalpurja), tax clearance (malpot), four boundaries map
• Guarantor citizenship certificate and recent passport-size photos
• Recent passport-size photographs (student and guarantor)

Education Loan Nepal — Frequently Asked Questions

• Which Nepali bank offers the lowest interest rate for UK study loans in 2026?
  Rastriya Banijya Bank (RBB) offers the lowest floating rate at 5.97% as of Baisakh 2082. RBB also offers the highest maximum loan of NPR 80 lakhs and a 12-month moratorium after course completion — making it the preferred choice for most Nepali students going to the UK.
• How much education loan can I get for UK study?
  Most banks offer NPR 40–80 lakhs. RBB has the highest ceiling at NPR 80 lakhs. The amount approved depends on your university's fee structure, your total cost estimate, and the market value of your collateral property.
• What expenses does the loan cover?
  Your education loan can cover: tuition fees, UK Student Visa fee (£558), Immigration Health Surcharge (£776/year), living costs (£10,827–£14,130/year), return airfare, and study materials. Provide the bank with a line-by-line cost breakdown.
• Do I need collateral for an education loan in Nepal?
  Yes — for loans above NPR 7.5 lakhs, most banks require property collateral (residential or commercial land, or fixed deposits). Since UK study typically costs NPR 55–90 lakhs in total, most students will need collateral. Start identifying your family property early.
• What is the moratorium period at RBB?
  RBB offers a 12-month moratorium after course completion — meaning you do not need to repay the principal for 12 months after graduating. Interest payments may still apply during this period. This gives you time to secure employment under the UK Graduate Route Visa.
• Do I need my NOC before applying for a loan?
  Most banks require the NOC from MoEST before disbursing your loan. Apply for your NOC (noc.moest.gov.np, NPR 2,000, 1–5 days) as soon as you have your offer letter — before approaching the bank. Read our complete NOC Nepal guide for the full process.
• Can my loan funds be used to show bank balance for the UK visa?
  Yes. Loan funds disbursed into a Nepal Rastra Bank-regulated Class A bank account satisfy the UK Student Visa bank balance requirement: £10,827 for outside London (≈ NPR 21.1 lakhs) held for 28 consecutive days. This is one of the key advantages of choosing your bank for your loan.
• Should I choose a floating or fixed interest rate?
  Floating rates are currently much lower — 5.97% at RBB vs approximately 10% fixed. Floating rates move with Nepal Rastra Bank's base rate and can rise. Given the current gap between floating and fixed, most students choose floating, but discuss your personal risk preference with your bank.
• How long does loan approval take?
  After submitting all documents, approval typically takes 2–4 weeks — including collateral valuation and credit assessment. Start your loan application as soon as you receive your offer letter, not when your visa deadline is approaching.
• Does HOA charge any fee for loan guidance?
  No. HOA's guidance on education loans, bank selection, document preparation, and the entire UK application process is 100% free to students — always. Our service model has been free since we were founded in 2016.