Education Loan Nepal
for UK Study
Compare bank interest rates, loan limits, and eligibility — everything Nepali students need to finance a UK university degree, explained clearly and for free.
Last updated: 10 Aug 2026 | Rates as of Baisakh 2082 (2026)
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 (£10,539–£13,761), 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 a UKVI-approved bank account to satisfy the 28-day bank balance rule for your Student Visa.
HOA advantage: HOA's service is completely free — we never charge students. We help you choose the right bank, prepare loan documents, time your NOC and visa applications correctly, and avoid costly mistakes.
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.
| Bank | Floating Rate | Fixed Rate | Max Loan | Notes |
|---|---|---|---|---|
| Rastriya Banijya Bank (RBB) Lowest | 5.97% | ~10% | NPR 80 lakhs | 15-yr tenure, 12-mo moratorium |
| Global IME Bank | 6.38% | ~10% | NPR 40–60L | Strong branch network |
| Everest Bank | 6.45% | ~10% | NPR 40–60L | Good processing speed |
| Siddhartha Bank | 6.53% | ~10% | NPR 40L | — |
| Citizens Bank International | 6.53% | ~10% | NPR 40L | — |
| Other banks (most) | 6.5–7.5% | ~10% | NPR 25–50L | Rates vary — confirm with branch |
* 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.
Rastriya Banijya Bank
5.97%- Max NPR 80 lakhs
- 15-year tenure
- 12-month moratorium
- Collateral above NPR 7.5L
- Government bank — stable
Global IME Bank
6.38%- Up to NPR 40–60 lakhs
- Wide branch network
- UKVI-approved bank
- Collateral required above 7.5L
- Good for Pokhara students
Everest Bank
6.45%- Up to NPR 40–60 lakhs
- Fast processing
- UKVI-approved
- Competitive terms
- Nationwide branches
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 — £10,539 (outside London) to £13,761 (London) per year
- Return airfare — Kathmandu to UK and back
- Study materials and equipment
Provide a detailed cost estimate to the bank: Prepare a line-by-line breakdown of all costs when you apply for your loan — banks will not disburse funds without evidence of the total amount needed. HOA helps you prepare this estimate during your free consultation.
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
Typical UK master's budget: Total cost NPR 55–90 lakhs means virtually all students need property collateral. Start identifying your family's collateral property early — valuation and paperwork take 2–4 weeks.
How to Apply for an Education Loan — Step by Step
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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.
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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.
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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.
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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).
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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.
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6
Use disbursed funds for visa bank balance
Your loan disbursed into a UKVI-approved bank account satisfies the 28-day bank balance requirement: £10,539 (outside London) or £13,761 (London) — approximately NPR 20.5–26.8 lakhs.
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7
Transfer tuition and apply for visa
Transfer tuition fees to your UK university through your UKVI-approved 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)
Tip: Prepare all documents in advance before visiting the bank. Missing a single document can delay your application by weeks during peak periods. HOA provides a personalised document checklist at your free consultation.
Education Loan Nepal — Frequently Asked Questions
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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.
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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.
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Your education loan can cover: tuition fees, UK Student Visa fee (£558), Immigration Health Surcharge (£776/year), living costs (£10,539–£13,761/year), return airfare, and study materials. Provide the bank with a line-by-line cost breakdown.
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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.
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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.
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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.
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Yes. Loan funds disbursed into a UKVI-approved Nepali bank account satisfy the UK Student Visa bank balance requirement: £10,539 for outside London (≈ NPR 20.5 lakhs) held for 28 consecutive days. This is one of the key advantages of choosing a UKVI-approved bank for your loan.
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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.
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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.
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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.
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