Canada is home to a number of the top universities in the world. Students from across the globe are flocking to secure their spots at these universities and to get a chance to study in Canada. While the cost of studying abroad is a hurdle for many, however, Canada offers multiple scholarships for Nepali students allowing maximum students to be eligible to apply to universities in Canada without having to worry about the tuition fees.
While scholarships provide students relief from having to shoulder the entire financial responsibility of studying abroad, however, the truth is there is huge competition among students in securing these scholarships that are limited in number. Candidates who are not able to secure scholarships but are determined to study abroad can look at an education loan to finance their study abroad dreams. Understanding the process of securing an education loan to study in Canada can be a turning point in your academic journey.Studying in Canada offers incredible opportunities, from world-class education to promising career prospects. While the investment is significant, an education loan is a strategic financial tool that can make this dream accessible and manageable. Here's why opting for an education loan is a smart choice for aspiring Nepali students:
Different loans suit different needs.
Before applying, check if you are eligible for an education loan to study in Canada.
Education loans usually cover a wide range of programmes:
In this section, we are going to talk about the steps involved in applying for an education loan to study in Canada from Nepal.
Step 1: Find a loan provider
The most important step to applying for an education loan to study in Canada is to find a bank that provides the best interest rate to students looking for an education loan to pursue higher education abroad. Most banks would have a loan calculator on their website for you to use to get a rough estimate of the interest rate you would be required to pay provided you get the education loan. Do a thorough research, speak to bank agents, shortlist a couple and visit them in person to understand the eligibility requirements, applicable interest rates and repayment methods before shortlisting your education loan financial institution (bank).
Step 2: Apply for an Education Loan
Once you have shortlisted your bank for your education loan, go ahead with the application process. A lot of the processes are currently handled electronically meaning you are not required to physically visit the bank. However it is important that all documents are uploaded as required on the system for the smooth processing of your education loan application.
Step 3: Submit Documents
Lenders usually ask for:
Step 4: Wait for Approval
Once conditionally approved, the lender will share the interest rate and repayment terms. If you accept the offer, the loan gets final approval, and funds are released. The education loan approval process in Nepal can take up to 4 weeks.
Step 5: Review Before You Sign
Go through the terms and repayment details carefully. If anything is unclear, get advice from someone you trust before signing.
These are the documents needed when applying for an education loan in Nepal. Candidates should note that the below documents are provided for reference, banks would have their own set of requirements.
Applying for an education loan to study in Canada can be a daunting process. And a lot of first time students looking to study abroad are more vulnerable to make mistakes during the application process. Candidates are advised to get in touch with our AECC counsellors for assistance during the entire study abroad journey. From helping you identify the best banks for education loans to study in Canada, to supporting documentation and approval, AECC Nepal makes the process smooth and stress-free.
Understanding how study loans for Nepali students work can save you from confusion later. Please note these are general guidelines and are bound to differ from one bank to another.
Repayment terms vary depending on the lender. Most banks allow a moratorium period (study duration + 6 months). Repayment tenure typically ranges from 5-10 years, but can extend up to 15 years with some banks.. Early repayment is allowed by most banks without penalties.
Education loans in Nepal are typically collateral-based term loans, meaning you need to pledge property or assets that meet the bank's requirements. If you are using land as collateral, most banks expect it to meet these common criteria:
While Nepal does not currently offer tax benefits on education loan interest, students studying in Canada may be eligible for certain deductions once they start working and become taxpayers in Canada.
Most banks in Nepal offer education loans of up to NPR 10 million, typically covering tuition, travel, and living expenses. Some banks, however, cap their education loans at NPR 5 million, which may fall short if you are enrolling in a more expensive course. It's important to check whether the bank's loan limit aligns with your total estimated costs before applying.
Nepali students can apply for an education loan to study in Canada that covers up to the total Cost of Attendance (COA), as defined by their college or university. This amount includes tuition fees, accommodation (room and board), meals, books and study materials, local transportation, health insurance, student activity fees, and other essential living expenses associated with studying abroad.
The loan amount is calculated as the total COA minus any scholarships, grants, or financial aid the student has already received. This ensures that students can bridge the financial gap and confidently pursue their international education without worrying about uncovered expenses.
Here are some top options with the interest rates for education loan to study in Canada:
|
Bank |
Floating Interest Rate |
Fixed Interest Rate |
Tenure |
Processing Fee |
|
Rastriya Banijya Bank |
6.14% to 7.14% |
10% |
Up to 5 Years |
0.75% |
|
Global IME |
6.38% to 9.88% |
11.99% to 12.99% (≤5 yrs) |
Under 5 Years |
0.75% |
|
12.99% to 13.99% (>5 yrs) |
Above 5 Years |
|||
|
Everest Bank |
6.45% to 8.45% |
11.99% |
Up to 7 Years |
0.75% |
|
Siddhartha Bank |
6.53% to 9.78% |
10.25% (≤5 yrs) |
Under 5 Years |
0.75% |
|
10.75% (>5 yrs) |
Above 5 Years |
|||
|
Citizens Bank |
6.76% to 9.76% |
11% (6 to 10 yrs) |
For 6 to 10 Years |
0.75% |
|
11.50% (11 to 15 yrs) |
For 11 to 15 Years |
Make informed choices through these recommendations:
Enhance your chances of securing an education loan to study in Nepal with the tips listed below:
Nepali students looking to apply for an education loan to study in Canada are advised to get in touch with their bank for the updated rate of interest and other important details. The article here provides a guide to students looking to apply for an education loan to study in Canada. More importantly interest rates are subject to change and candidates are advised to closely communicate with the bank for updated information.
Confused about top universities in Canada or courses that are eligible to be covered by the education loan being offered by your bank? AECC works closely with students from Nepal to help them secure the best possible education loan to study in Canada. Whether you are looking for loans with or without collateral, our expert counsellors provide end-to-end guidance. Talk to us today and start your study journey with confidence.
You can avail an education loan for study in Canada between NPR 10 lakhs and 1 crore. The amount will be based on your profile, collateral and course. This is a common education loan for studying in Canada from banks in Nepal.
Yes, studying on a student loan in Canada will not impact your application for permanent residence if you qualify for an education loan in Nepal, have good financial history, and satisfy all the conditions for immigration and the requirements of official documents.
An education loan to study in Canada usually covers tuition fees, living expenses, insurance, travel, books, and visa charges. This coverage is common in the education loan process for Canada, helping Nepali students manage costs efficiently.
Yes, generally, when applying for an education loan from Nepali banks to study in Canada, a guarantor or co-applicant is almost always required. The co-applicant shares the responsibility of loan repayment with the student. The bank assesses the income stability, financial standing, and creditworthiness of the co-applicant(s) to ensure the loan can be repaid.
Nepal's approval of education loans usually takes 2–4 weeks upon examining all documents required for education loans in Canada, subject to the procedures of the bank and your education loan eligibility in the country.
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