Banks in Nepal evaluate loan applications using several factors combined into an eligibility assessment. Understanding what they look at — and improving it — can be the difference between approval and rejection.

1. Clear any existing defaults first
A single loan default in your CIB report can cause rejection at any bank. Before applying for a new loan, resolve all outstanding defaults and get a no-objection certificate if possible.

2. Keep your EMI-to-income ratio below 40%
Nepal Rastra Bank guidelines suggest banks should not lend if your total monthly EMIs exceed 40% of your gross monthly income. If you are close to this limit, pay off a smaller loan first.

3. Stable employment for at least 2 years
Banks prefer applicants who have been with the same employer for 2+ years. If you recently changed jobs, wait a few months before applying for a major loan.

4. Maintain a salary account with the lending bank
Banks often give preferential treatment to customers who have their salary credited to an account with them. This gives them income visibility and reduces their perceived risk.

5. Apply jointly with a co-borrower
If your income alone is insufficient, adding a spouse or parent as a co-borrower increases the combined income and typically boosts the eligible loan amount by 40–60%.

Use LoanBazaar's free eligibility checker to see your score before you walk into a bank — no impact on your CIB report.