6 Best Banks for Home Loan in Nepal

Building a home can get expensive, especially in city areas. And on top of that, if you’re buying land and building a house at the same time, it might cause a hole in your pocket. With a lack of money for building a house, you might also be skeptical over loans as it might cause you a financial burden. So, we have listed out some great home loan banks that are offering you without putting much burden on your shoulders.

NIC Asia-Super Chamatkarik Ghar Karja

Super Chamatkarik Ghar Karja is a loan granted by NIC Asia bank that intends at presenting simplified loan products with higher loan eligibility and flexible accommodation parameters. They also have a home loan calculator on their website which lets you check if you are eligible for the loan.

Purposes of This Loan:

Purchase of readymade house
Purchase of apartment having land ownership certificate in the borrower’s name
Construction of house
Purchase of developer constructed house
Refinance/Swap of existing home loan.
Renovation/Extension of the existing house.
Equity financing for land or land & building

Sponsored

• Eligibility: Minimum 21 years (at the time of application) and a maximum of 80 years at the time of maturity.
• Loan Amount: Minimum NPR 4lacs to maximum NPR 1.5 Crore.
• Loan Tenure: Minimum 5 years up to 25 years.
• Interest Rate: 8.25% p.a. (interest rate locked for first 1 year) + 8.25%(from 2nd year)

Himalayan Bank- Home Loan

Himalayan Bank is providing home loans targeting customers of middle and upper-middle-class income groups with a regular, adequate, steady, and stable source of income.

Purposes of This Loan:

Purchase of house
Purchase of Land alone
Construction of house
Additions/extension/renovation/modification

• Eligibility:
  • Minimum 25 years (at the time of application) and a maximum of 60 years at the time of maturity.
  • A reliable source of income from a job, rent, pension, remittance supported by the document.
  • Must be able to provide unencumbered fixed assets collateral as primary security. The proposed site should have an access road of at least 8 feet in width.

• Loan Amount: Minimum NPR 5lacs and for purchase of land alone: maximum NPR 30lacs.
• Loan Tenure: Minimum 3 years up to 20 years.
• Interest Rate: 8.38% (Base rate) + up to 5.00%

Nabil Bank- Housing Loan

Nabil Bank is providing Housing Loans which are flexibly designed to take you closer to your dream home. Similar to other many home loan schemes, the loan-to-value ratio is 60% outside Kathmandu and 50% inside the valley.

Purposes of This Loan:

Purchase of readymade house
Construction of house
Purchase of developer constructed house
Refinance/Swap of existing home loan.
Renovation/Extension of the existing house.

• Eligibility:
  • Minimum 18 years (at the time of application) and a maximum of 70 years at the time of maturity.
  • All individuals having a sufficient level of income to repay EMIs.
  • Salaried individual – Should be in permanent service
  • Self-Employed individual–Business should be at least 2 years in commercial operation
  • The plot should have at least 8 feet wide road with motorable access
  • The plot should be free from Guthi and/or Mohi
  • The plot should be far away from a high tension line.
  • Third-party collateral is not acceptable.
• Loan Amount: Maximum NPR 5 crores
• Loan Tenure: Up to 35 years
• Interest Rate: 8.38% (Base rate) + up to 5.00%

Bank of Kathmandu-Housing Loan

Bank of Kathmandu also provides a home loan in an attractive Intrest Rate for part-financing accommodation facility for the individuals having an identifiable and stable income source.

Purposes of This Loan:

Purchase of readymade house
Purchase of apartment having land ownership certificate in the borrower’s name
Construction of house
Purchase of developer constructed house
Refinance/Swap of existing home loan.
Renovation/Extension of the existing house.

• Eligibility:
  • Minimum 18 years (at the time of application) and a maximum of 65 years at the time of maturity.
  • Self-employed professionals.
  • Salaried Employees.
  • Any other individual having identified source of income e.g. lease, business, pension, etc.

• Loan Amount: Minimum NPR 5lacs to maximum NPR 1 Crore.
• Loan Tenure: Maximum 20 years
• Interest Rate: 8.47% (Base rate) + up to 5.00

Nepal Investment Bank- Home Loan

Nepal Investment Bank provides home loan for people wanting to buy or construct a house or get a ready-made apartment with Equal Monthly Installments (EMI) facility for payment up to 15 years.

Purposes of This Loan:

Purchase of readymade house
Purchase of apartment having land ownership certificate in the borrower’s name
Construction of house
Purchase of developer constructed house
Refinance/Swap of existing home loan.
Renovation/Extension of the existing house.

• Eligibility:
  • Minimum 18 years (at the time of application) and a maximum of 60 years at the time of maturity.
  • Borrowers’ uncommitted  income should be 25% more than the Equated  Monthly Installment (EMI)

• Loan Amount: Up to NPR 1crore or 60% of the total value (whichever is lower)
• Loan Tenure: 15 Years maximum
• Interest Rate: 7.88% (Base rate) + from 1.50 to 5.00%

Everest Bank- Everest Home Loan

Everest Home Loan is a loan where you can get the loan by directly contacting a representative. They also don’t have a fixed rate for the loan and have the lowest base rate.

Purposes of This Loan:

Construction & Purchase of house/flat
Repairs / renovation / additions / alteration to the house/flat
Purchase of land to construct house/building for residential purpose

• Eligibility:
  • Minimum 18 years (at the time of application) and a maximum of 65 years at the time of maturity.

• Loan Amount: Minimum NPR 5lacs to maximum NPR 1 Crore.
• Loan Tenure: Maximum 20 years
• Interest Rate: 7.48%(Base rate) + from 2.5% to 5%

Documents Required for Home Loan

1. Identification

• Photograph (2 copies each)
• Citizenship and/or Passport
• Marriage Certificate (if applicable)
• Bank (deposit & loan) account statement of at least 6 months
• Firm/Company Registration Certificate (if applicable)
• PAN/VAT Certificate (If applicable)
• Article of Association (AOA) and Memorandum of Association (MOA) (if applicable)
• Partnership Deed (if applicable)
• PAN Certificate (for Loan amount above NPR 5 million)
• Location Map (Residence & Office)

2. Security/Collateral

• Land Ownership Certificate (Lalpurja)
• Rajinama or Bakaspatra or Ansha-banda
• Malpot Receipt
• Tax clearance of building
• BluePrint and trace map
• Char Killa Pramanit
• Approved house map
• Nirman Sampanna Patra
• Ghar Kayam in Lalpurja in case of existence of the house

3. Income Source

• Salary certificate
• Rental agreement (If any) along with tenant’s identification
• Latest Audited financials Certificate (If business income)
• Salary certificate, work permit, valid passport with visa, payslip and bank account statement (If income is from foreign employment)
• Latest tax paid receipt or tax clearance certificate for all income (wherever applicable)

4 Other Requirements

• Copy of Land Ownership Certificate of a residential house (where ever applicable)

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