Home Loan Interest Rate in Nepal (Kartik 2083): Lowest Rates of All Banks, EMI & NRB Rules
Last updated: 24 October 2026 (Kartik 7, 2083) · Rates effective from Kartik 1, 2083 · Category: Finance & NEPSE
Looking for the home loan interest rate in Nepal right now? Here is the short answer: in Kartik 2083, home loans start from about 4.55% per year at the cheapest banks (Nepal Investment Mega Bank and Agricultural Development Bank), the median starting rate across 47 banks and financial institutions is about 5.92%, and most commercial banks quote a range of roughly 5% to 8%. Finance companies charge more, with starting rates up to about 9.6%.
This is the cheapest home loan money Nepal has seen in years. But the number in the headline is rarely the number you pay. This guide shows the full range for every bank, explains how your own rate is set (base rate plus premium), works out real EMIs for a Rs. 50 lakh loan, and covers the NRB rules on loan limits, LTV and income that decide how much you can actually borrow. It also covers the parts most rate lists skip: fees, prepayment, fixed vs floating, and what happens to your EMI if rates rise again.
Key takeaways (Kartik 2083)
- Lowest starting home loan rate: about 4.55% (Nepal Investment Mega Bank, Agricultural Development Bank).
- Median starting rate across 47 banks and finance companies: about 5.92%.
- The rate you get depends on your premium. Strong borrowers get the low end; most people land somewhere in the middle of each bank’s range.
- NRB limits: up to Rs. 3 crore for a residential home loan, 80% LTV for a first home, 70% for others.
- A Rs. 50 lakh, 20-year loan at 5.92% costs about Rs. 35,591 a month. The same loan three years ago, at around 12.8%, cost about Rs. 57,761.
- Rates are near a floor. Plan your budget for a rate that is 2 to 3 points higher than today.
In this guide
- Home loan rates of all 20 commercial banks
- Development bank & finance company rates
- Why the lowest rate is not your rate
- How your rate is set: base rate + premium
- Why home loans are so cheap in 2083
- EMI for Rs. 50 lakh at different rates
- What if rates go up again?
- NRB rules: loan limit, LTV and income
- Fees and hidden costs
- Fixed or floating rate?
- Prepay your loan or keep an FD?
- Documents and application process
- FAQs
Home Loan Interest Rates of All 20 Commercial Banks (Kartik 2083)
The table below shows each commercial bank’s published home loan (ghar karja) rate range for Kartik 2083, sorted by the starting rate. The first figure is the lowest rate the bank offers, usually to its strongest borrowers. The second is the top of its published range.
| Commercial bank | Starting rate | Up to | Notes |
|---|---|---|---|
| Nepal Investment Mega Bank | 4.55% | 6.55% | Lowest, verified by bank |
| Agricultural Development Bank | 4.55% | 7.55% | State-owned |
| Prime Commercial Bank | 4.87% | 9.87% | Widest range |
| Siddhartha Bank | 4.88% | 7.88% | – |
| Nabil Bank | 4.91% | 6.91% | Narrow range |
| Everest Bank | 5.18% | 7.18% | – |
| Machhapuchchhre Bank | 5.43% | 7.43% | – |
| Laxmi Sunrise Bank | 5.44% | 7.44% | – |
| Rastriya Banijya Bank | 5.51%* | 5.76% | State-owned; tightest range |
| NMB Bank | 5.51% | 7.51% | – |
| Himalayan Bank | 5.59% | 7.59% | – |
| Nepal SBI Bank | 5.61% | 7.61% | – |
| Global IME Bank | 5.64% | 7.64% | – |
| Prabhu Bank | 5.69% | 8.94% | – |
| Kumari Bank | 5.92% | 7.92% | – |
| NIC Asia Bank | 5.94% | 7.94% | – |
| Citizens Bank International | 5.99% | – | Fixed-rate offer |
| Standard Chartered Bank Nepal | 6.12% | 7.62% | – |
| Sanima Bank | 6.21% | 8.21% | – |
| Nepal Bank Limited | 6.83%* | – | State-owned |
Source: rate ranges as compiled by Byajdar from published bank schedules (checked Kartik 7, 2083). *Trackers disagree for some state-owned banks: BankByaj lists Rastriya Banijya Bank from 4.26% and Nepal Bank from 4.41% for the same month. Treat these as indicative and get the rate in writing from the bank.
What the commercial bank numbers tell us
- Five banks start below 5%. NIMB, ADBL, Prime, Siddhartha and Nabil all publish starting rates under 5% this month.
- The spread inside one bank is bigger than the gap between banks. Prime’s range runs 5 full percentage points (4.87% to 9.87%), while the gap between the 1st and 15th bank’s starting rate is only about 1.4 points. Your own premium matters more than which bank tops the list.
- Tight ranges are easier to plan around. Rastriya Banijya Bank and Nabil publish narrow ranges, so there is less room for a surprise premium.
Chart: Lowest starting home loan rates, Kartik 2083
Bar length scaled to 10%. Starting rates only; your rate depends on the premium the bank gives you.
Home Loan Rates at Development Banks & Finance Companies
Development banks (Class B) and finance companies (Class C) can be useful if a commercial bank turns you down or you are buying outside the big cities where they have a strong branch network. Their starting rates are close to commercial banks, but their upper ranges are much higher, so the premium you are offered decides whether they are a good deal.
| Institution | Type | Starting rate | Up to |
|---|---|---|---|
| Excel Bikas Bank | Development bank | 4.99% | 8.49% |
| Kamana Sewa Bikas Bank | Development bank | 5.46% | 10.46% |
| Lumbini Bikas Bank | Development bank | 5.46% | 9.46% |
| Shine Resunga Development Bank | Development bank | 5.47% | 9.47% |
| Shangrila Development Bank | Development bank | 5.57% | 9.56% |
| Mahalaxmi Bikas Bank | Development bank | 5.68% | 9.43% |
| Muktinath Bikas Bank | Development bank | 5.92% | 7.92% |
| Manjushree Finance | Finance company | 5.89% | 9.89% |
| Gurkhas Finance | Finance company | 6.21% | 11.21% |
| Central Finance | Finance company | 6.31% | 11.31% |
| Goodwill Finance | Finance company | 6.46% | 10.46% |
| Janaki Finance | Finance company | 9.59% | 14.19% |
Source: Byajdar, Kartik 7, 2083. A selection of the most relevant institutions, not the full list.
Why the Lowest Rate Is Not Your Rate
This is the biggest gap in almost every “home loan rate in Nepal” list. They show one number per bank, usually the lowest. In practice, the bank sets your rate by adding a premium that depends on how risky it thinks your loan is. When we compared the published ranges this month, the typical commercial bank range was about 2 percentage points wide. On a Rs. 50 lakh, 20-year loan, a 2-point difference is roughly Rs. 6,000 a month.
What usually gets you closer to the low end:
- A salaried job with a salary account at the same bank, or steady, documented business income with tax records.
- A lower loan-to-value ratio (for example, borrowing 50% of the value instead of the full 80%).
- A clean repayment record with the Credit Information Bureau (CIB).
- A property in a valley or city location with clear title, road access and an approved building map (naksa).
- A smaller EMI compared with your income.
Tip: Ask every bank the same question: “What premium will you charge me, in percentage points over your base rate?” Get the answer in the offer letter. Comparing premiums from three banks is more useful than comparing their headline rates.
How Your Home Loan Rate Is Set: Base Rate + Premium
Most home loans in Nepal are floating-rate loans. The formula is simple:
How a floating home loan rate moves (simplified)
Mostly what the bank pays depositors.
Published every month under NRB rules.
Fixed in your offer letter at sanction.
As the base rate average changes.
- Base rate: the bank’s minimum lending rate, worked out from its cost of deposits, reserve requirements and operating costs. Every bank publishes it monthly on its website. Most commercial banks’ base rates are now between about 4% and 5.5%.
- Premium: the margin added for you. NRB rules stop a bank from raising the premium written in your accepted offer letter later in the loan, so read that number carefully before you sign.
- Resets: floating loans are re-priced as the bank’s average base rate (typically a 3-month average) moves. When the base rate falls, your rate should fall too. When it rises, either your EMI goes up or your tenure is extended.
Worked example: NIMB’s applicable base rate from Kartik 1, 2083 is 4.55% (the average of Ashadh, Shrawan and Bhadra). A borrower with a 1-point premium would pay 5.55%; one with a 2-point premium would pay 6.55%, the top of NIMB’s range.
Why Home Loans Are So Cheap in 2083
Three years ago, home loans at commercial banks were costing well over 12%. The chart below uses one mid-sized commercial bank, Kumari Bank, to show how far base rates have fallen. Other banks moved in a similar way.
Chart: Kumari Bank base rate, 2080 to 2083
Source: Kumari Bank base rate page (period-end base rates). Bar length scaled to 12%.
- Too much money, too few borrowers. Banks are holding large deposits from remittance inflows while loan demand stays weak, so their cost of funds keeps falling.
- Deposit rates are at the floor. Most banks now pay around 2.75% on a 1-year fixed deposit, close to NRB’s deposit facility floor. Cheap deposits mean cheap loans. Our guide to the fixed deposit interest rate in Nepal shows the other side of the same story.
- NRB is supporting credit. The FY 2083/84 monetary policy kept a flexible stance and higher housing loan limits to get lending moving again.
Will home loan rates fall further? There is not much room left. With deposit rates already near the 2.75% floor, base rates cannot fall much lower. The bigger risk over a 15 to 20 year loan is that rates rise once loan demand picks up. Nobody can predict the timing, so budget for it (see the stress test below).
Home Loan EMI in Nepal: Rs. 50 Lakh at Different Rates
EMI formula: EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1], where P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. Here is what a Rs. 50,00,000 loan over 20 years costs at today’s key rates:
| Scenario (Rs. 50 lakh, 20 years) | Rate | Monthly EMI | Total interest |
|---|---|---|---|
| Lowest starting rate today | 4.55% | Rs. 31,768 | Rs. 26.24 lakh |
| Median starting rate | 5.92% | Rs. 35,591 | Rs. 35.42 lakh |
| Typical borrower (base about 4.9% + 2% premium) | 6.92% | Rs. 38,525 | Rs. 42.46 lakh |
| Highest starting rate (finance company) | 9.59% | Rs. 46,901 | Rs. 62.56 lakh |
| For comparison: Kartik 2080 (base 10.77% + 2%) | 12.77% | Rs. 57,761 | Rs. 88.63 lakh |
Our calculations using the standard reducing-balance EMI formula. Real EMIs can differ slightly by bank because of day-count and rounding methods.
The same Rs. 50 lakh loan that cost about Rs. 57,761 a month three years ago costs about Rs. 38,525 today for a typical borrower. That is around Rs. 19,000 a month less, which is why many families who could not afford a loan in 2080 are looking again now.
How tenure changes your EMI and total interest
A longer loan lowers your EMI but raises the total interest a lot. Here is Rs. 50 lakh at the median rate of 5.92%:
| Tenure | Monthly EMI | Total interest | Total repaid |
|---|---|---|---|
| 10 years | Rs. 55,310 | Rs. 16.37 lakh | Rs. 66.37 lakh |
| 15 years | Rs. 41,977 | Rs. 25.56 lakh | Rs. 75.56 lakh |
| 20 years | Rs. 35,591 | Rs. 35.42 lakh | Rs. 85.42 lakh |
| 25 years | Rs. 31,971 | Rs. 45.91 lakh | Rs. 95.91 lakh |
| 30 years | Rs. 29,721 | Rs. 56.99 lakh | Rs. 1.07 crore |
Chart: Total interest paid on Rs. 50 lakh at 5.92%
L = lakh. Going from 20 to 30 years cuts the EMI by about Rs. 5,870 but adds about Rs. 21.6 lakh in interest.
What If Home Loan Rates Go Up Again? (Stress Test)
Rate lists rarely talk about this, but it is the most important check before you sign a floating-rate loan. Rates in Nepal moved by more than 5 points in three years. If your rate rises by 3 points over the life of the loan, here is what happens to Rs. 50 lakh over 20 years:
At today’s 5.92%
Rs. 35,591
monthly EMI
If it rises to 8.92%
Rs. 44,729
monthly EMI (about Rs. 9,100 more)
- Rule of thumb: if your budget only works at today’s rate, the loan is too big. Make sure you could still pay the EMI at a rate 3 points higher.
- When rates rise, some banks extend the tenure instead of raising the EMI. That keeps the monthly payment the same but adds years of interest.
- Keep an emergency fund of at least 6 months of EMIs. A term or life insurance policy large enough to cover the loan protects your family if something happens to the main earner. Many banks ask for one anyway.
NRB Home Loan Rules for 2083/84: How Much Can You Borrow?
Your interest rate is only half the picture. Nepal Rastra Bank’s rules decide the maximum loan, and your income decides how much of that a bank will actually give you.
| Rule | Current limit | What it means |
|---|---|---|
| Maximum residential home loan | Rs. 3 crore | Raised from Rs. 2 crore; continued in the 2083/84 policy |
| LTV, first home | Up to 80% | You pay at least 20% of the bank’s valuation |
| LTV, other homes | Up to 70% | You pay at least 30% |
| Debt service to income | Up to 70% for home loans | All your EMIs together vs. gross income; many banks use a lower internal limit |
Sources: FY 2083/84 monetary policy as reported by ShareSansar; the limits were first introduced in FY 2082/83 (Kantipur). The 70% debt-service ratio for home loans came from NRB’s FY 2023/24 third-quarter review (Himal Press). Check the current Unified Directive or ask the bank for the latest conditions.
Who counts as a “first home” buyer?
The higher 80% LTV comes with conditions. Based on NRB’s first-home circular and how banks apply it today, you usually need to meet all of these:
- The house or apartment is for your own use, not to rent out.
- The property area is no more than 3,000 sq ft. That is roughly 8.8 aana in valley units; use our ropani to square feet converter to check your plot.
- You have no existing home loan from any bank or financial institution.
Watch out: LTV is based on the bank’s valuation, not the price you agreed with the seller. Valuations are often lower than market prices in Kathmandu, Lalitpur and Bhaktapur, so 80% of the valuation can mean only 60% to 70% of what you actually pay. Plan for a bigger down payment than the headline LTV suggests.
How much income do you need?
For a Rs. 50 lakh loan over 20 years at 5.92% (EMI Rs. 35,591), with no other loans:
At the 70% NRB ceiling
About Rs. 50,800/month
At a safer 50%
About Rs. 71,200/month
Gross monthly income figures. Most borrowers will be more comfortable keeping all EMIs under about 40% to 50% of take-home pay, which also leaves room for a rate rise.
Home Loan Fees and Hidden Costs in Nepal
A slightly lower rate can be wiped out by fees. Ask every bank for the full cost before choosing.
| Cost | Typical amount | Tip |
|---|---|---|
| Service (administrative) fee | Up to 0.75% of the loan at commercial banks | On Rs. 50 lakh, up to Rs. 37,500. Negotiable for good borrowers. |
| Valuation fee | Paid to a bank-approved valuer | Ask for the quote upfront. |
| Insurance | Property insurance, often life/term cover too | A yearly cost for the whole loan period. |
| Malpot and registration | Mortgage registration at the Land Revenue Office | Separate from the purchase tax on the property. |
| Prepayment charge | None on loans up to Rs. 50 lakh at many banks; small % above | Check the schedule of charges before you sign. |
The 0.75% service fee cap for commercial banks was set in NRB’s 2021/22 monetary policy. As an example, Nepal Bank’s schedule of charges lists no prepayment charge on term loans up to Rs. 50 lakh, and 0.15% to 0.75% of the prepaid amount above that, depending on loan age. Other banks’ charges differ.
Fixed or Floating Home Loan Rate: Which Is Better in 2083?
Floating rate
- Lowest rate on offer today.
- Falls automatically if base rates fall.
- Rises if base rates rise, and they are near a multi-year low.
Fixed rate
- Same EMI for the fixed period, often 3 to 7 years.
- Usually priced a little above the floating starting rate.
- Higher prepayment charges are common.
Our view: with deposit rates already at the floor, the floating rate has little room to fall and more room to rise. If a bank offers a fixed rate within about 0.5 point of its floating rate for 5 years or more, it is worth serious thought, especially if your budget is tight. If you have spare income and plan to prepay, floating keeps your options open. Either way, ask what happens to the rate when the fixed period ends.
Prepay Your Home Loan or Keep Money in an FD?
Right now this is an easy call for most people. A 1-year FD at a typical commercial bank pays about 2.75%, and you lose 6% of the interest to tax. Your home loan likely costs 5.5% to 7%. Every rupee you put towards the loan “earns” your loan rate, tax-free.
Example: Rs. 5,000 extra every month
On Rs. 50 lakh at 5.92% for 20 years, paying Rs. 5,000 more than the EMI each month clears the loan in about 16 years (191 months) instead of 20, and saves about Rs. 8.2 lakh in interest.
- Keep your emergency fund first. Prepay only with money you won’t need soon.
- Check your bank’s prepayment charge and minimum prepayment amount.
- Ask the bank to reduce the tenure (saves more interest) rather than the EMI, if you can manage the payment.
Home Loan Documents and Application Process in Nepal
Documents usually needed:
- Citizenship certificate or national ID, and passport-size photos of the borrower and guarantors.
- Proof of income: salary certificate and 6 to 12 months of bank statements, or business registration, PAN/VAT and audited accounts or tax returns.
- Land ownership certificate (lalpurja), land map (naksa/trace), char killa and recent land tax receipt (malpot).
- Approved building plan and building completion certificate (or construction estimate for a new build).
- For apartments: the sale agreement and the developer’s approvals.
Typical home loan process
Premium, fees and terms from 3 banks
Submit documents and income proof
Bank’s valuer checks the property
Check rate, premium and charges
Registration at malpot, then disbursement
More banks now take loan enquiries through their mobile apps and websites, though the valuation and mortgage steps still happen in person. If you are interested in how digital-first banking is developing, read our guide to neo banks in Nepal.
Buying a home in Nepal while working abroad?
Many home loans in Nepal are taken by families with a member working abroad. Banks generally want to see that remittance coming through a Nepali bank account in a regular, documented way, so set that up early. Our guides explain how to open a bank account in Nepal from abroad and the cheapest legal ways to send money to Nepal. Ask your bank whether it accepts foreign income and what documents it needs.
7-Point Checklist Before You Sign
- Compare your premium, not the headline rate, from at least three banks.
- Get the full cost in writing: service fee, valuation, insurance and documentation.
- Stress-test the EMI at a rate 3 points higher.
- Check prepayment terms and whether partial prepayment cuts tenure or EMI.
- Ask how the rate resets: how often, which base rate average, and how you will be told.
- Confirm the valuation before paying the seller, so your down payment is enough.
- Read the offer letter: rate type, premium, tenure, insurance and penalty interest.
Frequently Asked Questions
What is the current home loan interest rate in Nepal?
In Kartik 2083, home loan rates start from about 4.55% at the cheapest banks. The median starting rate across 47 banks and financial institutions is about 5.92%, and most commercial banks quote ranges of roughly 5% to 8%.
Which bank has the lowest home loan interest rate in Nepal?
Nepal Investment Mega Bank and Agricultural Development Bank publish the lowest starting rate at 4.55% for Kartik 2083, followed by Prime Commercial Bank, Siddhartha Bank and Nabil Bank, all under 5%. The rate you get depends on your premium.
How much home loan can I get in Nepal?
Up to Rs. 3 crore for a residential home. Banks can lend up to 80% of the property’s valuation for a first home and 70% for other homes. Your income also limits the amount, because the bank checks that you can afford the EMI.
What is the EMI for a Rs. 50 lakh home loan in Nepal?
For 20 years, it is about Rs. 31,768 a month at 4.55%, Rs. 35,591 at 5.92% and Rs. 38,525 at 6.92%. A 15-year loan at 5.92% costs about Rs. 41,977 a month.
Are home loans in Nepal fixed or floating?
Most are floating: the bank’s base rate plus a premium, so the rate changes when the base rate changes. Some banks offer fixed rates for the first few years. Ask which one you are getting and how often the rate resets.
Can the bank increase my premium after the loan is approved?
Under NRB rules, a bank cannot raise the premium stated in your accepted offer letter. Your rate can still change on a floating loan because the base rate moves. Keep a copy of your offer letter and complain to the bank, then NRB, if the premium is changed.
What is the processing fee for a home loan in Nepal?
Commercial banks can charge a service fee of up to 0.75% of the loan amount. Valuation, insurance and mortgage registration costs are extra. Many banks reduce the service fee for strong borrowers or during offers.
Will home loan rates in Nepal go down further?
There is limited room. Deposit rates are already near NRB’s 2.75% floor, so base rates cannot fall much more. Rates could rise once loan demand recovers, so plan your budget for a higher rate than today.
Final Verdict
The home loan interest rate in Nepal is at one of its lowest points in years. In Kartik 2083, the best banks start at about 4.55%, the median starting rate is around 5.92%, and a typical borrower can expect something in the 5.5% to 7% range at a commercial bank. That makes a Rs. 50 lakh home roughly Rs. 19,000 a month cheaper to finance than it was three years ago.
Use that advantage carefully: compare premiums rather than headline rates, check the full fees, stay within the 80% or 70% LTV with a realistic valuation, and make sure your EMI still works if rates rise by 3 points. Rates are revised at the start of every Nepali month, so check this page again in Mangsir. For more money guides, browse our Finance & NEPSE guides.
How we compiled these rates
We compared published Kartik 2083 home loan ranges on 24 October 2026 using Byajdar and BankByaj, and cross-checked base rates against official bank pages where available (NIMB, Kumari Bank, Rastriya Banijya Bank). Policy limits come from Nepal Rastra Bank’s FY 2083/84 monetary policy as reported by ShareSansar. All EMI and interest figures are our own calculations.
Disclaimer: This article is for general information, not financial or legal advice. Rates change monthly and vary by borrower, property and branch. Always confirm the rate, premium and charges with the bank in writing before borrowing.