A pension loan is a credit facility for retirees who receive a regular government or institutional pension — civil servants, Nepal Army and Nepal Police retirees, teachers and other pensioners. The loan is serviced from the monthly pension, which the bank usually requires to be credited to an account with it, so the steady pension acts as the security and repayment source.
Because the pension is a guaranteed, government-backed inflow, banks price pension loans relatively favourably and often skip the heavy collateral requirements of other loans. They suit retirees who need a lump sum for medical costs, a family event, home repair or to help children, repaid in instalments deducted from the pension. The table below ranks every bank publishing a pension loan rate, lowest first.
Limits are typically a multiple of the monthly pension and may also depend on the borrower's age, since the tenure is capped to keep repayment within the expected pension period. Comparing rates matters: on the modest amounts pensioners usually borrow, a lower rate keeps the monthly deduction smaller and leaves more of the pension to live on.
Lowest Pension Loan Rates in Nepal — Bank Comparison
0 BanksWhat is a pension loan in Nepal?
A pension loan is a loan offered to pensioners — such as retired civil servants, army and police personnel and teachers — secured against their regular monthly pension. The bank typically requires the pension to be credited to it and deducts the instalment from each payment.
Who is eligible for a pension loan in Nepal?
Eligibility is generally limited to people receiving a regular government or recognised institutional pension. The pensioner usually must route the pension through the lending bank. Specific eligibility, age limits and documentation vary by bank.
Which bank has the lowest pension loan rate in Nepal?
The bank at the top of the comparison table above currently publishes the lowest pension loan interest rate. Loans are ranked lowest-first because a lower rate means a smaller monthly deduction from the pension.
How much can a pensioner borrow?
The limit is usually set as a multiple of the monthly pension and may also depend on the pensioner's age, because the repayment tenure is kept within the expected pension period. The exact formula varies by bank.
Do I need collateral for a pension loan?
Often not in the traditional sense — the regular pension itself acts as the security and repayment source. Some banks may still ask for a guarantor or additional documentation. Confirm the requirements with the specific bank.
What does the ✓ Verified badge mean?
A Verified badge means the rate was confirmed directly by the bank through Byajdar's partner portal rather than scraped from public sources. Verified rates always override scraped data for that bank and product.