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Education Loan

MBL Education loan is specially designed for students intending to pursue higher education domestically and for abroad. International universities and colleges give a lot of credence regarding demonstration of adequate financial means when an education loan is shown as their financial strength. Due to its stringent approval process MBL education loan has been accepted by most of the international universities and colleges world wide.

Purpose

  1. Financing education cost

Features and Benefits:

  • Competitive Interest rates
  • Quick Turnover Time: Approving status within 7 days of submission of all required documents 
  • Flexible Tenor:

    Maximum 12 years, including 2 years moratorium period.

    Moratorium period: Maximum upto 2 years. During moratorium period, only interest amount to be paid on each Nepali quarter end and loan amount (within the approved limit) can be disbursed in maximum of seven installments as per requirement of the student/ University.

  • Financing Percentage: 

    Loan limit can be approved upto 70% of Fair Market Value of real estate collateral or 80% of total education expenses (tuition fee, living expenses, overseas health insurance expenses, travelling expenses and other related expenses) during course period whichever is lower. 

  • Loan size: 

    Minimum: NPR. 200,000; Maximum NPR. 6,000,000 or total expenses whichever is lower.

  • Loan processing fee: 1% of the loan amount
  • Pre-payment charge: Pre-payment can be made with nominal charge @ 1%, however pre-payment charge @ 3% will be levied in case of SWAP

FAQs:

1. What can the loan be used for?

The loan can be used only for the payment of Tuition fee, living expenses, health insurance expenses, travelling expenses and other related expenses.

2. What must be the borrower’s age?

Minimum: 18 Years; Maximum: 58 Years at the loan maturity date

3. Do I need to show any income?

Yes, there should be proof of sufficient disposable income which is at least 1.5 times of the monthly amount required to service the loan. Salary/ Rental/ Business/ Agriculture/ Remittance/Vehicle Income (supported by documents/ bank statements) of their parents or any blood relative of the undivided family. Personal guarantee of family member whose income source is considered is must.

4. What security/collateral do I have to provide?

Real estate (Land/Building) must be in the name of member of your undivided family.

5. Can I withdraw all loan amounts at a single time?

Yes, lump-sum drawdown can be allowed only in case of need basis (as per requirement of University/ College) but all amounts shall be transferred to college via TT/SWIFT/draft. Normally, we shall disburse enrollment expenses at the first time and then accordingly in beginning of other semesters after getting letter/document evidence from University/College.

6. What is the repayment module?

You have to pay only interest ( on quarterly basis) of outstanding principal in moratorium period. Then after repayment via Equated Monthly Installment (EMI) (Principal + Interest).

 

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