Home loans in Nepal: rates, eligibility & documents

Most commercial banks in Nepal offer home loans covering 70–80% of a property's appraised value, with the remainder expected as a down payment. Interest rates are typically pegged to the base rate plus a premium, and are reviewed periodically.

Eligibility depends on verifiable income — salary slips and bank statements for employees, or audited financials for the self-employed and business owners. Lenders generally cap monthly repayment at around a third of verified monthly income.

Required documents usually include citizenship certificate, lalpurja and land ownership certificate, tax clearance, valuation report from an approved surveyor, and income proof. Having these ready before applying can cut approval time significantly.

It is worth comparing at least three banks: rates, processing fees and prepayment penalties vary meaningfully, and a small rate difference compounds substantially over a 15–20 year term.