Nepal · Funding your studiesFinancing study abroad from Nepal
Commercial banks (such as Global IME, NMB, Everest and others) offer education loans for study abroad. Interest rates are tied to the bank’s base rate and the loan is secured against collateral; there is no government no-collateral guarantee comparable to India’s.
Collateral & guarantor: Collateral is almost always required — typically land/buildings, fixed deposits or government bonds. Banks usually want collateral worth 20–40% more than the loan. A guarantor with stable income (usually a parent) is also required and their profile is scrutinised closely.
Schemes & lenders
Commercial-bank education loans
Secured term loans covering tuition and sometimes living costs, repaid over several years. Each bank sets its own margin, moratorium and eligible-country list.
International no-cosigner lenders
Prodigy Finance and (when open) MPOWER lend to Nepali students without local collateral, based on the university and future earnings — useful if your family has no asset to pledge.
Foreign exchange & remittance
Foreign-currency for tuition and living costs is released through the bank after the loan and the student’s file are approved, in line with Nepal Rastra Bank foreign-exchange rules. Banks require the offer letter and a cost estimate before releasing funds.
Documents you’ll typically need
- University offer letter and fee structure
- Citizenship certificate copies — applicant and all guarantors
- A ward-office letter confirming the guarantor–applicant relationship
- Guarantor salary certificate (within ~3 months) and 6+ months of bank statements
- Collateral / property valuation documents
- Passport and student visa (or application)
International no-cosigner lenders
Prodigy Finance
Lends to international master's students (MBA, STEM, law, public policy and similar) from 120+ countries without a co-signer, assessing future earning potential and the university/programme rather than a guarantor's income. Can finance up to 100% of the cost of attendance. Students must be admitted to a supported university and programme.
MPOWER Financing
Offers no-cosigner, no-collateral loans to students from 150+ countries studying in the US and Canada, with a lifetime limit around US$100,000. Note: MPOWER paused new lending for 2026 after reaching funding capacity, so check current availability before relying on it.
Frequently asked questions
Do I need collateral for a study-abroad loan in Nepal?
In almost all cases, yes. Nepali banks lend against property, fixed deposits or bonds — often requiring collateral worth 20–40% more than the loan — plus a guarantor with stable income. If you have no asset to pledge, international no-cosigner lenders are the main alternative.
Can the education loan serve as financial proof for my visa?
A sanctioned loan, together with bank statements and proof of funds, is commonly used as evidence that you can meet tuition and living costs. Requirements vary by destination, so confirm exactly what your visa and the Ministry of Education’s process need.
What documents do Nepali banks ask for?
Expect the offer letter and fee structure, citizenship copies for you and your guarantors, a ward-office relationship letter, the guarantor’s recent salary certificate and 6+ months of statements, and collateral/valuation papers.
Plan your funding
Sources: Required documents for education loans — Global IME Bank · Education loan requirements for Nepali students — MPOWER
Last reviewed October 2026. This is general educational information, not financial or lending advice. Loan products, rates, scheme rules and foreign-exchange limits vary by lender and change over time — verify current details with regulated lenders and your bank, and speak to a qualified adviser about your own situation.