Nepal is one of the closest, most affordable study destinations for Indian students — popular for NMC-approved MBBS as well as engineering, management, and IT. Its proximity, shared culture, English-medium teaching, and a full MBBS cost of around ₹30–45 L make it a practical choi…
₹15–35 L
Typical Loan
48 Hours
Approval
From 6.85%
Interest Rate
Country Snapshot
Why Nepal
World-class universities
14+ approved institutions
Strong career outlook
~12,000 Indian students/yr
Loan-ready
All 12+ FundMyCampus banks lend here
Global network
Clear post-study work pathway
The Complete Guide
Nepal is one of the most practical study destinations for Indian students — not only because it's affordable, but because it's right next door. Around 12,000 Indians study there, drawn by visa-free access for Indian nationals, shared language and culture, English-medium teaching, and costs far below India's private colleges. It's best known for NMC-approved MBBS (full degree ₹30–45 L), but Tribhuvan University, Kathmandu University and others also offer recognised engineering, IT, and management degrees at just ₹6–15 L.
For most families, an education loan funds the journey. SBI and Bank of Baroda offer the lowest rates (8.5–10.75%) when collateral is available — a strong fit for MBBS, where the amount is larger. For low-cost general degrees, much of the amount can fall within or near the ₹7.5 L unsecured limit. Families without collateral can turn to NBFCs like Avanse, Auxilo, and HDFC Credila, which fund the full MBBS fee unsecured in under 10 days. Year-by-year disbursement keeps early interest low.
This guide covers it all: choosing the right lender for MBBS or general study, a course-wise cost breakdown, the (visa-free) enrolment and funding-proof process for Indian students, NMC-approved and recognised top universities, sample EMIs, and stackable government schemes. FundMyCampus has helped many students structure Nepal study loans — and the lesson is consistent: for MBBS, confirm NMC approval and secure the lowest rate you can; for general degrees, keep the loan lean and repayment short.
Use these numbers to right-size your loan — under-borrowing forces 18%+ personal loans abroad, over-borrowing wastes interest.
Tuition
Living
Travel
Misc + Books
Average Total Program Cost
₹30–45 L for MBBS; ₹6–15 L for general degrees
Typical for Indian Master's students
| Program | Tuition | Living | Travel | Misc | Total |
|---|---|---|---|---|---|
| MBBS (5.5 yrs incl. internship) | ₹28–38 L | ₹6–10 L | ₹0.8–1.5 L | ₹1.5–2.5 L | ₹36–52 L |
| BDS / Dentistry (5 yrs) | ₹16–24 L | ₹5–8 L | ₹0.6–1.2 L | ₹1–1.5 L | ₹22–35 L |
| Engineering / B.Tech (4 yrs) | ₹4–8 L | ₹4–7 L | ₹0.6–1 L | ₹0.8–1.2 L | ₹9–17 L |
| BBA / MBA / IT (3–4 yrs) | ₹3–7 L | ₹3–6 L | ₹0.5–1 L | ₹0.6–1 L | ₹7–15 L |
Your Journey
From admit to disbursement — what FundMyCampus handles end-to-end.
Check eligibility
Free 2-min quiz tells you which banks will approve and at what rate.
Submit documents
Upload through our portal — we organise and stress-test before submission.
Sanction in days
Most Nepal loans approved in 5–14 days. We chase the bank for you.
Disbursement
Bank wires fees directly to your Nepal institution. You focus on the move.
Rates span roughly 3–4% across lender types. PSU banks (SBI, BoB) are cheapest at 8.50–10.75% but need collateral over ₹7.5 L and take 15–25 days. Private banks (ICICI, Axis) sit at 10.50–12.75% with 7–14 day processing. NBFCs (Avanse, Auxilo, Credila) run 11–14.5% — highest, but fund the full fee unsecured and fastest. On a ₹35 L Nepal MBBS loan over 10 years, a PSU rate can save ₹7–9 L in interest versus an NBFC. For low-cost general degrees the absolute difference is small, so speed and convenience often outweigh the rate; for MBBS, the collateral-backed PSU route is well worth pursuing if you can.
State Bank of India (SBI Student Loan)
Max: ₹40 L
8.50% – 10.50%
Lowest rates for Nepal studies. Collateral required above ₹7.5 L. Best for MBBS where families have property and 15–25 days to process.
Bank of Baroda (Baroda Scholar)
Max: ₹40 L
8.85% – 10.75%
Strong PSU option for NMC-approved Nepalese universities and general degrees. Year-wise disbursement. Collateral typically above ₹7.5 L.
Avanse Financial Services
Max: ₹40 L
11.00% – 14.00%
Funds the full MBBS fee unsecured on co-applicant income. Best for families without collateral. 5–10 day approval.
Auxilo Finserve
Max: ₹35 L
11.50% – 14.50%
Overseas-MBBS specialist NBFC. Flexible on co-applicant profile; approves declined cases. Fast 5–8 day processing.
HDFC Credila
Max: ₹40 L unsecured
11.00% – 13.50%
Largest unsecured limit for Nepal MBBS. 5–8 day approval. Good for last-minute admits and single-sanction needs.
ICICI Bank Education Loan
Max: ₹40 L
10.50% – 12.75%
Faster than PSU banks (7–14 days). Balanced rate-vs-speed option for both MBBS and general courses in Nepal.
For Nepal, the collateral picture depends on the course. For general degrees (engineering, management, IT) costing ₹6–15 Lakhs, the entire amount often fits within or just above the ₹7.5 Lakh unsecured PSU-bank limit — frequently fundable unsecured or with a small FD pledge. MBBS is different: at ₹30–45 Lakhs total, PSU banks (SBI, Bank of Baroda) require collateral above ₹7.5 L. Accepted forms: residential property (LTV 75–85%), fixed deposits (LTV 90%), LIC policies, and government bonds. Families without property can use NBFCs — Avanse, Auxilo, HDFC Credila — which fund the full MBBS fee unsecured on co-applicant income at rates 2–3% higher, with approval in under 10 days. A common approach for MBBS is to pledge an FD or property with a PSU bank for the lowest rate, or split a ₹7.5 L unsecured PSU loan with an NBFC top-up.
Visa Essentials
What you need to prove for your Nepal visa
Year 1 fees
Tuition Proof
₹1–2
Living Funds
Mandatory
Loan Letter
3 key items
Requirements
Key Requirements
Indian students enjoy a uniquely easy path to Nepal: under the India–Nepal friendship arrangement, Indian nationals do…
For admission and the (non-tourist) student registration process, you'll typically provide: (1) The education-loan…
Because Nepalese medical and general universities usually bill fees year-by-year, lenders disburse the loan in annual…
These are on most lenders' preferred lists — easier approval, higher unsecured limits, lower rates.
| University | Location | Annual Fees | Tier |
|---|---|---|---|
| Kathmandu University School of Medical Sciences | Dhulikhel / Kathmandu | ₹6–7.5 L | Premier |
| B.P. Koirala Institute of Health Sciences (BPKIHS) | Dharan | ₹6–7.5 L | Premier |
| Institute of Medicine, Tribhuvan University | Kathmandu | ₹5.5–7 L | Premier |
| Manipal College of Medical Sciences | Pokhara | ₹6–7.5 L | Premier |
| Nepalgunj Medical College | Banke / Nepalgunj | ₹5.5–7 L | Tier 1 |
| Universal College of Medical Sciences | Bhairahawa | ₹5.5–7 L | Tier 1 |
| College of Medical Sciences | Bharatpur, Chitwan | ₹5.5–7 L | Tier 1 |
| Nobel Medical College | Biratnagar | ₹5.5–7 L | Tier 1 |
| Kathmandu Medical College | Kathmandu | ₹5.5–7 L | Tier 1 |
| Tribhuvan University (Institute of Engineering) | Lalitpur / Kathmandu | ₹1.5–3 L | Tier 1 |
| Kathmandu University (School of Engineering) | Dhulikhel | ₹2–3.5 L | Tier 1 |
| Pokhara University | Pokhara | ₹1.5–3 L | Tier 2 |
| Purbanchal University | Biratnagar | ₹1.5–3 L | Tier 2 |
| Kathmandu University School of Management | Kathmandu | ₹2–4 L | Tier 2 |
See lender-wise rates, how much you can borrow, and EMI estimates for popular Nepal universities.
After Graduation
What awaits Indian graduates post-study
Available
Post-study work
Yes
PR pathway
Strong
Salary growth
~12,000/yr
Indian community
Highlights
Nepal is primarily a study destination for Indian students, with most returning to India to work or practise.
For engineering, management, and IT graduates, the typical path is to return to India and join the workforce, or use…
For loan repayment, MBBS graduates usually clear FMGE/NExT within 6–12 months and begin earning in India (junior…
Typical EMI for a Nepal loan, 10-year repayment tenure after moratorium.
₹15 L · 10% · 10 yrs
~₹19,800
Monthly EMI
₹25 L · 10.5% · 10 yrs
~₹33,700
Monthly EMI
₹35 L · 11% · 10 yrs
~₹48,200
Monthly EMI
₹40 L · 11.5% · 12 yrs
~₹52,000
Monthly EMI
₹35 L · 9% · 15 yrs
~₹35,500
Monthly EMI
₹10 L · 10.5% · 7 yrs
~₹16,900
Monthly EMI
For Nepal studies, Indian students typically use: (1) Section 80E tax deduction — full deduction on interest paid on loans from any RBI-registered bank or NBFC, for up to 8 years, applicable to overseas MBBS and general degrees. (2) Dr. Ambedkar Central Sector Scheme — interest subsidy during moratorium for SC/ST and OBC students abroad, subject to income caps. (3) Padho Pardesh-style minority interest subsidies (where active) for notified minority communities. (4) State-level schemes — Tamil Nadu, Kerala, Maharashtra, Telangana, Bihar, Uttar Pradesh and others run interest-subsidy or education-assistance programs that can apply to studies in Nepal; check your state's welfare department. The Central Sector Interest Subsidy Scheme (CSIS) generally applies to studies within India, not abroad, though Nepal's proximity sometimes prompts borrowers to confirm current eligibility with their lender. A counsellor can help you stack 1–2 applicable schemes for an effective rate reduction of around 1.5%–2%.
Success Story
““Nepal made sense for me — close to home, English-medium, and an NMC-approved college with a curriculum almost identical to India's. The fee was around ₹35 L, and because my family had a small property to pledge, FundMyCampus helped me get an SBI loan at under 10%, far cheaper than the NBFC quotes I'd received. The loan was disbursed year by year, so my interest stayed low while studying. I'm now preparing for the NExT exam with an EMI I can comfortably manage.”
Common questions Indian students ask about studying in Nepal on loan