Education Credit Guarantee


  • The education loan advanced by member institutions upto the limit of Rs. 1 million.
  • The loan advanced by the member institutions without collateral or on a group guarantee to the educated unemployed persons for skill development and training which will benefit them to raise their own business upto the limit of Rs. 5,00,000.
  • The premium is fixed at 1% per annum out of which only 20% of premium amount (i.e 0.20% of the guaranteed amount) shall be paid by the member institution at the rate of 0.10% each on the outstanding loan of Magh end and Shrawan end respectively. Remaining 80% of premium amount (i.e 0.80% of the guaranteed amount) will be received as subsidy from the Government of Nepal.
  • The maximum tenure to lodge claim by member institutions with the Fund is within two years from the due date of payment of Loan.
  • The compensation rate is 80% of the outstanding balance of the loan at due date.