Collateral-free education loans for Nepalis: Fund your degree without property
For many Nepali students studying overseas, the biggest roadblock to studying in the U.S. or Canada is not university acceptance; it’s finding the money to go. Even talented, motivated students are often told their plans are impossible because their families cannot provide land, gold or other assets as loan security.
But collateral-free loans, also known as bina dhito loans, offer a different path. These options are designed for students who want to finance their education without using family property as collateral. If you’ve been admitted to a top university but feel stuck because of financial limitations, this guide is for you.
What is a collateral-free (bina dhito) loan?
A collateral-free loan is a student loan that does not require any form of property or asset as security. In Nepal, these are often called bina dhito loans, and while local banks rarely offer them, private education loan lenders are starting to fill the gap.
Instead of asking for land or a family guarantee, these loans look at your:
- University and degree program
- Career potential and future income
- Immigration and visa status
- Academic history and graduation timeline
These loans are ideal for students pursuing postgraduate degrees who may not come from wealthy families but are ready to invest in their future.
Why collateral is a problem for many Nepali families
Most private education loans from Nepali banks require physical collateral, usually in the form of:
- Land or a family home
- Fixed deposits or gold
This structure creates serious barriers for students from rural areas, single-parent households or families without documented assets. Even students with strong academic profiles and university admission may get rejected for loans simply because their parents do not own land.
That’s why many students give up on studying abroad, not because they’re unqualified, but because the financial system is out of reach.
How international collateral-free loans solve this
Some international lenders now offer no-collateral, no-cosigner student loans to students from countries including Nepal. These loans are designed to support your education based on where you’re going, not what you own.
Key features include:
- No need for land, gold or property
- No cosigner or guarantor required
- Loans disbursed in U.S. or Canadian dollars
- Can cover tuition, housing and health insurance in the U.S.; tuition and university-invoiced expenses in Canada
- Fast online approval process
This gives Nepali students the freedom to move forward on their own terms. You don’t have to delay your education while waiting to build assets or convince your family to risk what they own.
Bina dhito loan options with MPOWER Financing
MPOWER Financing offers true no-collateral loans for Nepali students accepted to select universities in the U.S. and Canada. These loans are designed for students who want a clear, independent path to study abroad, without risking family property or relying on a cosigner.
MPOWER loans include:
- No collateral and no cosigner
- Available at eligible universities in the U.S. and Canada
- Fixed, inflation-proof interest rates with no hidden fees
- Funding for tuition, housing, health insurance and more in the U.S.; tuition and university-invoiced expenses in Canada
- Path2Success support for job searches, resume writing and OPT planning
MPOWER also helps Nepali students understand repayment terms in simple language, with budgeting tools that match your goals. If you need funding and your family cannot offer assets, MPOWER can help you move forward with confidence.
How to find a good collateral-free loan
Not all lenders are equal. Some may advertise low rates but hide extra fees or make repayment confusing. Others may ask for unofficial “guarantees” even if they claim to be collateral-free.
Here’s what to look for in a trustworthy lender:
- No hidden fees and a clearly explained Annual Percentage Rate (APR)
- Clear rate type, fixed or variable, with how often it can change, any caps, and how the margin is set
- No prepayment penalties, so you can repay early if possible
- Support during your studies, including budgeting and career tools
- Approval based on your future potential, not your family background
If a lender avoids your questions, pressures you to sign quickly or makes vague promises, that’s a sign to walk away.
A postgraduate STEM or business degree in the U.S. or Canada is within your reach with Bina dhito loans for your education.
