Education Loan

ADBL Education Loan in Nepal: Features and Process

With the aim that no hardworking student is deprived of higher education due to financial hardship, Agricultural Development Bank (ADBL - Krihi Bikas Bank) has introduced an “Education Loan” scheme. For students who want to pursue higher education in Nepal or abroad (Study in Nepal or Abroad), this loan can be a practical support option.

Key Features

• Target Group: Students who want to pursue higher education (Higher Education), technical education (Technical Education), or skill-based training in Nepal or abroad.

• Loan Limit: Investment up to 80% of the total cost of education (Total Cost of Education) determined by the educational institution. This includes tuition fees, hostel expenses, and the cost of other educational materials.

• Loan Tenure: Generally up to 7 years (study period + repayment time). Note: Under some special schemes or according to new directives of Nepal Rastra Bank, this duration may differ.

• Nature of Loan: This is “non-revolving” (Non-Revolving) in nature. That is, the approved amount can be withdrawn in installments as needed, but once repaid, it cannot be withdrawn again.

Interest Rate and Charges

• Interest Rate: The interest rate is determined by adding a fixed percentage premium (Premium) to the bank’s base rate (Base Rate). Since it is a government bank, its interest rate is more competitive and stable compared to private banks.

(For the current estimated interest rate, please refer to the “Interest Rate” section on the bank’s website, which generally changes monthly or quarterly.)

• Service Charges: A minimum processing fee applies as per Nepal Rastra Bank directives.

Required Documents

To proceed with the loan process, the following documents are mandatory.

For the student

• Citizenship certificate

• Passport (for foreign study).

• Academic certificates (from SLC/SEE up to the present)

• Offer Letter / Admission Letter from the educational institution.

• Cost estimation (Cost Estimation) certified by the college

• “No Objection Letter” from Nepal’s Ministry of Education (for foreign study)

For the guardian/guarantor

• Citizenship and photo

• Documents showing the source of income (salary, business, rent, or agricultural income)

• Tax clearance certificate

• Bank statement (Bank Statement), generally for 6 months

Collateral-related

• For an education loan, house/land collateral or gold/silver collateral may be required.

• Lalpurja (land ownership certificate), map, and tax-paid receipt of the property to be pledged as collateral

• Property valuation report prepared by the bank’s valuator (Valuator).

Application Process

1. Consultation: Visit the nearest branch and consult with the Credit Officer.

2. Application: Properly fill out the form and submit the required documents.

3. Assessment: The bank will assess your documents, income source, and collateral.

4. Approval: After all processes are completed, the bank issues a “Loan Sanction Letter,” which is important for the visa process (for foreign study).

Expert Tip

While taking an education loan, it is very important to understand the “moratorium period” (Moratorium Period). This refers to the period during study when the principal is not paid and only interest may need to be paid. Agricultural Development Bank may provide a facility to pay only interest during the study period and to pay principal and interest (EMI) after employment or income begins. While signing the loan agreement (Loan Agreement), pay special attention to this point.

(Disclaimer: This content is only for financial literacy and information. Before borrowing a loan or making investment-related decisions, please contact the bank’s official branch.)