How to Get a Home Loan in Nepal: Eligibility, Documents and the 80% First-Home Rule
A home loan is the biggest financial decision most families in Nepal make. This guide walks through it in the order the bank will.
- First home, up to Rs 3 crore: banks can lend up to 80% of the value if you meet NRB's conditions. Other homes: 70%. Land only: 50%.
- The rate is base rate + premium. Today's starting rates are in the table below.
- Expect to provide citizenship, income proof, the lalpurja and approved drawings, plus a bank valuation.
- Keep the EMI to about 40% of take-home pay so a rate rise does not hurt.
Step 1: Work out how much you can borrow
Two limits apply, and the lower one wins.
The value limit (NRB). Since Shrawan 2082, banks can lend:
| Purpose | Maximum loan |
|---|---|
| First home, up to Rs 3 crore | 80% of value |
| Other residential home | 70% of value |
| Land purchase only | 50% of value |
The 80% first-home limit applies only if the house is for your own use, is no larger than 3,000 sq ft, and you have no existing home loan with any bank. "Value" is the bank's valuation, which is often below the agreed price.
The income limit (the bank). The bank checks that you can afford the EMI from your regular income. If your income cannot support the EMI on 80%, you will be offered less.
Step 2: Compare rates
| Bank | Interest rate |
|---|---|
| Agricultural Dev. Bank | 4.55% – 6.55% |
| Nepal Investment Mega Bank | 4.55% – 6.55% |
| Prime Commercial Bank | 4.87% – 9.87% |
| NABIL Bank | 4.91% – 6.91% |
| Nepal Bank Limited | 4.91% – 6.41% |
| Excel Bikas Bank | 4.99% – 8.99% |
| Everest Bank | 5.18% – 7.18% |
| Machhapuchchhre Bank | 5.43% – 7.43% |
| Laxmi Sunrise Bank | 5.44% – 7.44% |
| Kamana Sewa Bikas Bank | 5.46% – 10.46% |
Most home loans in Nepal are floating, so the rate moves with the bank's base rate. Read how base rate and premium work before you compare, and see every bank on the home loan page.
| Tenure | Lowest starting rate (4.55%) | Median starting rate (5.71%) | Median top of range (8.60%) |
|---|---|---|---|
| 15 years | Rs 38,378 | Rs 41,413 | Rs 49,531 |
| 20 years | Rs 31,768 | Rs 34,990 | Rs 43,708 |
| 25 years | Rs 27,934 | Rs 31,335 | Rs 40,599 |
Step 3: Gather documents
- Citizenship certificate and photos of all borrowers.
- Income proof: salary letter and bank statements, or business registration, tax clearance and financial statements. Remittance income needs employment and transfer records.
- Land ownership certificate (lalpurja), the trace and land maps, and the tax receipt from the ward office.
- For construction: building drawings approved by the municipality (naksa) and the cost estimate.
- For a purchase: the sale agreement with the seller.
Step 4: Valuation, approval and mortgage
- The bank sends an approved valuer to value the property.
- Its legal team checks the title and access road.
- You receive an offer letter with the rate, premium, tenure and fees. Read it carefully.
- The property is mortgaged to the bank at the land revenue office (malpot).
- For construction, the loan is usually released in stages as the building goes up.
Step 5: Protect yourself
- Keep the EMI to about 40% of your take-home pay. Rates can rise during a 20-year loan.
- Ask about prepayment. Paying a lump sum early saves a lot of interest.
- Insure the house and yourself; banks usually require property insurance and often life cover.
Frequently asked questions
How much home loan can I get in Nepal?
Up to 80% of the property value for a first home worth up to Rs 3 crore if you meet NRB's conditions, 70% for other homes, and 50% for land only. Your income must also support the EMI.
What are the conditions for an 80% first home loan?
The house must be for your own use, no larger than 3,000 sq ft, and you must not have an existing home loan from any bank or financial institution. The limit applies up to Rs 3 crore.
What documents are needed for a home loan in Nepal?
Citizenship, income proof, the land ownership certificate (lalpurja) with maps and tax receipt, approved building drawings for construction, and a valuation by a bank-approved valuer.
How long can a home loan be in Nepal?
Many banks offer up to 20 to 25 years, depending on your age and the product. A longer tenure lowers the EMI but increases the total interest.
Is the home loan rate fixed or floating in Nepal?
Most are floating: base rate plus a premium. Some banks offer a fixed rate for an initial period. Ask which you are getting and how often the rate resets.
Rates and rules change. Byajdar is not a bank or a licensed adviser; confirm the current terms with the bank before you borrow.
Compare before you borrow: Compare every bank's home loan rate → Or get matched with Find My Bank →