Car Loan Interest Rate in Nepal (Kartik 2083): Lowest Auto & EV Loan Rates of All Banks
Updated 31 October 2026 (Kartik 2083) · Rates checked against bank rate sheets and Nepal Rastra Bank rules · By Wilson Shrestha
Quick answer
- The lowest car loan interest rate in Nepal this Kartik starts at about 4.59% (Agricultural Development Bank), followed by Prime Commercial, Rastriya Banijya, Nepal Bank and Siddhartha Bank, all under 4.9%.
- The median starting rate across 46 banks and finance companies is about 5.71%; most borrowers actually pay somewhere between the starting and the top rate.
- Banks can lend only 60% of the price of a private car, petrol or electric. You pay at least 40% down. The 80% limit is only for large electric public-transport vehicles.
- Fixed-rate auto loans cost more: Nepal Bank lists 7.99% (5 years) and 8.50% (7 years).
Car loans in Nepal have never been this cheap. Four or five years ago borrowers paid 15% or more. Today several banks lend below 5% because their base rates have fallen to around 4–5% and they are competing hard for vehicle business after the NADA Auto Show and the NAIMA Mobility Expo.
But the rate you see in an advert is the floor, not your price. This guide shows the current rate of every major lender, what a Rs 30 lakh loan really costs at each rate, what happens if rates rise again, and how EV loans, fixed rates, fees and the 60% rule change the maths.
In this guide
- Car loan interest rates of all banks (Kartik 2083)
- How your rate is set: base rate + premium
- EMI and total interest on a Rs 30 lakh loan
- Fixed vs floating: the rate-rise test
- EV loan in Nepal: rules and rates
- Down payment and the 60% rule
- The real cost beyond interest
- Bank vs hire purchase company
- Documents and how to apply
- FAQs
Car Loan Interest Rates of All Banks in Nepal (Kartik 2083)
The table shows each lender’s published floating auto loan range. The first number is the lowest premium the bank gives its strongest borrowers; the second is the highest. Rates are as of mid-Kartik 2083 (early November 2026).
| # | Bank / lender | Starting rate | Up to | Type |
|---|---|---|---|---|
| 1 | Agricultural Development Bank | 4.59% | 7.59% | Commercial bank |
| 2 | Prime Commercial Bank | 4.84% | 9.84% | Commercial bank |
| 3 | Rastriya Banijya Bank | 4.85% | 5.71% | Commercial bank |
| 4 | Nepal Bank Limited | 4.87% | 6.87% | Commercial bank |
| 5 | Siddhartha Bank | 4.88% | 7.38% | Commercial bank |
| 6 | Citizens Bank International | 4.91% | 7.41% | Commercial bank |
| 7 | Nepal Investment Mega Bank | 5.01% | 7.01% | Commercial bank |
| 8 | Excel Bikas Bank | 5.06% | 8.56% | Development bank |
| 9 | Nabil Bank | 5.16% | 7.16% | Commercial bank |
| 10 | Everest Bank | 5.18% | 7.18% | Commercial bank |
| 11 | Machhapuchchhre Bank | 5.42% | 7.42% | Commercial bank |
| 12 | Prabhu Bank | 5.43% | 7.93% | Commercial bank |
| 13 | Muktinath Bikas Bank | 5.52% | 7.52% | Development bank |
| 14 | Nepal SBI Bank | 5.58% | 7.58% | Commercial bank |
| 15 | Himalayan Bank | 5.59% | 9.09% | Commercial bank |
| 16 | Global IME Bank | 5.61% | 7.61% | Commercial bank |
| 17 | Laxmi Sunrise Bank | 5.63% | 7.63% | Commercial bank |
| 18 | Kumari Bank | 5.83% | 7.83% | Commercial bank |
| 19 | NIC Asia Bank | 5.94% | 7.94% | Commercial bank |
| 20 | NMB Bank | 5.95% | 7.95% | Commercial bank |
| 21 | Sanima Bank | 6.15% | 8.10% | Commercial bank |
| – | Finance companies (Gurkhas, Goodwill, ICFC, Pokhara and others) | 6.10% – 9.59% | up to 14.19% | Finance company |
Source: banks’ published Kartik 2083 rate schedules as compiled by Byajdar (verified Kartik 15, 2083). Floating rates move every quarter with the base rate. Confirm your own rate in writing before signing.
Starting rate at a glance
Lowest published floating auto loan rate, % per year (bar length scaled to 10%)
Watch out for old figures. Some popular Nepali pages still show 12–16% vehicle loan rates or say EVs get 80% financing. Both are out of date for 2026. Rates fell sharply through 2025–26, and the 80% EV limit was cut to 60% in February 2025.
How Your Car Loan Rate Is Set: Base Rate + Premium
Almost every auto loan in Nepal is a floating loan priced as:
- Base rate is the bank’s own cost of funds. It is published every month, and banks reset loans using a three-month average. Rastriya Banijya Bank’s average base rate was 4.01% and Nepal Bank’s 4.41% as of late September 2026, which is why both sit near the top of the table.
- Premium is the margin the bank adds for you. For auto loans it usually runs from about 0.5% to 2.5%. Festival and auto-show schemes cut it to around 0.5%.
- Once your loan agreement is signed, NRB rules stop the bank from raising your premium. Your rate only moves when the base rate moves.
What decides your premium: income and how stable it is, your credit history with the Credit Information Bureau, the loan amount and tenure, whether you hold a salary account with the bank, and the vehicle (new, used, EV, private or commercial). Ask the bank for the premium in writing, not just the “starting from” rate.
For the full picture of how base rates are moving, see our home loan interest rate guide, which uses the same base-rate system.
Car Loan EMI and Total Interest on Rs 30 Lakh
Rs 30 lakh is a typical loan for a Rs 50 lakh car under the 60% rule. Here is what different rates cost, using the reducing-balance EMI method Nepali banks use.
| Rate | EMI (5 years) | Total interest (5 yrs) | EMI (7 years) | Total interest (7 yrs) |
|---|---|---|---|---|
| 4.59% (lowest) | Rs 56,052 | Rs 3.63 lakh | Rs 41,826 | Rs 5.13 lakh |
| 5.16% | Rs 56,834 | Rs 4.10 lakh | Rs 42,628 | Rs 5.81 lakh |
| 5.71% (median) | Rs 57,595 | Rs 4.56 lakh | Rs 43,410 | Rs 6.46 lakh |
| 6.50% | Rs 58,698 | Rs 5.22 lakh | Rs 44,548 | Rs 7.42 lakh |
| 7.50% | Rs 60,114 | Rs 6.07 lakh | Rs 46,015 | Rs 8.65 lakh |
| 8.50% (fixed) | Rs 61,550 | Rs 6.93 lakh | Rs 47,509 | Rs 9.91 lakh |
| 9.59% | Rs 63,138 | Rs 7.88 lakh | Rs 49,170 | Rs 11.30 lakh |
Rs 1.33 lakh
saved over 7 years by getting the lowest rate (4.59%) instead of the median (5.71%) on Rs 30 lakh.
+Rs 1.50 lakh
extra interest from choosing 7 years instead of 5 years at the same 4.59% rate, in exchange for an EMI Rs 14,226 lower.
Rule of thumb: keep the car EMI under about 20–25% of your monthly take-home pay. On a Rs 43,000 EMI that means a household income of roughly Rs 1.7–2.2 lakh a month. Banks also check your total debt burden, so existing loans and card limits reduce what they will lend.
Fixed vs Floating Auto Loan: The Rate-Rise Test
Today’s rates are near historic lows, so the obvious worry with a floating loan is: what if rates jump back up? We tested it on a Rs 30 lakh, 7-year loan.
| Scenario | EMI | Total interest |
|---|---|---|
| Floating at 5.2%, rates never change | Rs 42,684 | Rs 5.85 lakh |
| Floating at 5.2%, jumps 3 points to 8.2% after 2 years | Rs 42,684 then Rs 45,856 | Rs 7.76 lakh |
| Fixed at 8.5% for all 7 years | Rs 47,509 | Rs 9.91 lakh |
Even with a 3-point rise after two years, the floating loan stays about Rs 2.15 lakh cheaper than locking in today’s 8.5% fixed rate. Fixed rates in Nepal are priced well above floating because the bank takes the rate risk.
When fixed still makes sense: your budget cannot absorb a Rs 3,000–5,000 EMI jump, or you are on a fixed income (a pension, a set remittance) and want certainty. Some banks offer a middle path; at NADA 2026 Global IME fixed its EV rate at 5.17% for the first three years, then base rate + 2% for the rest.
EV Loan in Nepal: Rules and Rates in 2026
Electric cars now make up the large majority of new private car sales in Nepal, so most car loans today are really EV loans. Here is what is different and what is not.
Same as petrol
- 60% maximum loan for a private EV (40% down)
- Usually up to 7 years
- Comprehensive insurance required while the loan runs
- Bank’s name stays on the blue book until you repay
Different for EVs
- Several banks run separate EV or “green” loans with a lower premium or fee
- Large EVs for public transport can get 80% financing (from FY 2083/84)
- NMB Bank now finances used EVs, up to Rs 35 lakh, with tenure linked to battery warranty
- Lower running cost makes a slightly higher EMI easier to carry
EV examples at the 5.71% median rate over 7 years:
| EV price | Max loan (60%) | Your down payment (40%) | EMI |
|---|---|---|---|
| Rs 25 lakh | Rs 15 lakh | Rs 10 lakh | Rs 21,705 |
| Rs 40 lakh | Rs 24 lakh | Rs 16 lakh | Rs 34,728 |
| Rs 60 lakh | Rs 36 lakh | Rs 24 lakh | Rs 52,092 |
Tip: ask every bank whether its EV rate is a separate product. Nepal Bank, for example, lists a separate EV schedule (fixed 7.90% for 5 years). If a bank quotes the same premium for EV and petrol, ask for the EV scheme or a fee waiver.
Down Payment for a Car in Nepal: The 60% Rule
| Vehicle | Maximum loan | Minimum down payment |
|---|---|---|
| Private car, jeep, van (petrol, diesel or electric) | 60% | 40% |
| Private two-wheeler | 60% | 40% |
| Large electric public-transport vehicle | 80% | 20% |
| Business vehicles replacing ones damaged in the Gen Z protests | 80% | 20% |
How it changed: until February 2025, EVs could get 80% and petrol cars only 50%. NRB then set both at 60%. The FY 2083/84 monetary policy (effective July 2026) restored 80% only for large electric public vehicles; private cars stayed at 60%.
The 60% is usually counted on the VAT bill value of a new vehicle, or on the bank valuer’s figure for a used one, whichever the bank uses. Any “80% finance” offer for a private car is either a public-transport scheme or a different product, so read the terms.
The Real Cost of a Car Loan Beyond Interest
The interest rate is the biggest cost, but not the only one. Budget for these when you compare offers:
| Cost | Typical amount | On a Rs 30 lakh loan |
|---|---|---|
| Service / processing fee (one-time) | About 0.5% at commercial banks; up to 1% at hire purchase companies | Rs 15,000 – 30,000 |
| Comprehensive insurance (every year) | Required by the bank; depends on value, cc or kW | See vehicle insurance prices |
| Valuation (used vehicles) | Bank-approved valuer’s fee | Ask the bank |
| Blue book and lien release | DoTM fees when adding and removing the bank’s name | Small, but needs time |
| Prepayment fee | Varies; often waived on floating loans after a lock-in | Ask before signing |
| Late-payment penalty | Extra interest on the overdue instalment | Pay on time |
NRB rules say banks can charge only an administrative service fee, a commitment fee and a prepayment fee on top of interest; anything else must be built into the interest rate. If a bank lists other charges, question them. Many show-time schemes also cut the service fee to 0.5%, so ask for that even outside NADA or NAIMA.
After you own the car, yearly road tax and blue book renewal also apply; here is how to check vehicle tax and blue book renewal online.
Bank Loan vs Hire Purchase Company vs Dealer Finance
Dealers often push a tie-up lender or a hire purchase company because it is fast. Compare before you agree.
| Point | Commercial bank | Development bank / finance co. | Hire purchase company |
|---|---|---|---|
| Starting rate now | About 4.6% – 6.2% | About 5% – 9.6% | Cost-of-funds based; usually higher |
| Max loan | 60% | 60% | Within NRB LTV (60% for vehicles) |
| Service fee cap | Lowest; often 0.5% | Slightly higher | Max 1% (2026 rule) |
| Penalty interest | Per bank rules | Per bank rules | Max 2 points, no interest on penalty |
| Best for | Salaried, clean credit | Outside the valley, local relationship | Speed or thin paperwork |
The August 2026 NRB amendment for hire purchase companies also requires a PAN for any vehicle loan above Rs 25 lakh and bars these companies from lending for a single vehicle brand only.
Documents Needed and How to Apply
Everyone
- Citizenship or National ID card, photos
- Dealer quotation (model, price, specs)
- Bank statements (usually 6 months)
- Individual PAN for loans above Rs 25 lakh
- Relationship documents if a guarantor is needed
By income type
- Salaried: salary certificate, appointment letter, probation completed
- Business: registration, PAN/VAT, audited accounts, tax clearance
- Rental income: rent agreement, tenant ID, property papers
- Remittance-based: proof of regular inflows; ask the bank first
- Get quotes from at least three banks using the table above, including your salary bank.
- Ask for the premium, fee, prepayment terms and tenure in writing.
- Pay your 40% down payment to the dealer and submit documents.
- Bank approves and pays the dealer directly; insurance is arranged with the bank as beneficiary.
- Registration records the bank as financier in the blue book.
- After the last EMI, collect the release letter and remove the bank’s name at the transport office.
Which Car Loan Fits You?
| Your situation | Best move |
|---|---|
| Salaried, good credit, Kathmandu | Floating loan from a low-base-rate bank (ADBL, RBB, Nepal Bank, Siddhartha); negotiate premium |
| Tight monthly budget, cannot handle EMI jumps | Fixed or part-fixed loan, 5 years, cheaper car |
| Buying an EV | Ask for the bank’s EV scheme; still plan 40% down |
| Buying a used EV | NMB Bank’s used EV loan; check remaining battery warranty |
| Expect a bonus or remittance lump sum | Floating loan with no or low prepayment fee; pay down early |
| Have cash in a fixed deposit | Compare: if your FD rate after tax is below your loan rate, a bigger down payment saves money |
Avoid using a credit card or an unsecured personal loan to cover the 40% down payment. Card interest runs around 24–27% (see our credit card guide), which wipes out any saving from a cheap car loan.
Frequently Asked Questions
Which bank has the lowest car loan interest rate in Nepal?
For Kartik 2083, Agricultural Development Bank starts lowest at about 4.59%, followed by Prime Commercial (4.84%), Rastriya Banijya (4.85%), Nepal Bank (4.87%) and Siddhartha Bank (4.88%). These are starting rates; your actual rate depends on the premium the bank gives you.
How much down payment do I need for a car in Nepal?
At least 40% of the vehicle value for any private car, petrol or electric, because NRB caps the loan at 60%. On a Rs 40 lakh car, that is Rs 16 lakh down and a maximum loan of Rs 24 lakh.
Can I get an 80% loan for an EV in Nepal?
Not for a private EV. Since July 2026, 80% applies only to large electric vehicles used for public transport and to some business vehicles damaged in the Gen Z protests. Private EVs remain at 60%.
What is the EMI for a Rs 30 lakh car loan in Nepal?
At the 5.71% median rate, about Rs 43,410 a month over 7 years or Rs 57,595 over 5 years. At the lowest 4.59% rate, about Rs 41,826 (7 years) or Rs 56,052 (5 years).
What is the maximum tenure for an auto loan in Nepal?
Usually up to 7 years for private vehicles at most banks; a few list longer terms. Longer tenure lowers the EMI but raises total interest.
Is a fixed or floating car loan better right now?
Floating is cheaper for most buyers. In our test, a 5.2% floating loan that jumps to 8.2% after two years still costs about Rs 2.15 lakh less in interest than an 8.5% fixed loan on Rs 30 lakh over 7 years. Choose fixed only if you cannot absorb a higher EMI.
Can I repay my car loan early?
Yes, but prepayment rules vary by bank and by fixed or floating loan. Many banks waive or reduce the fee on floating loans after a set period. Get the prepayment terms in writing before you sign.
Do banks give loans for used cars?
Yes. Banks finance used vehicles based on a bank-approved valuation, usually at a slightly higher premium and shorter tenure. NMB Bank also finances used EVs up to Rs 35 lakh.
Bottom line
Car loan interest rates in Nepal are at multi-year lows, with the best banks starting under 5% and a median near 5.7%. Pick a low-base-rate bank, negotiate the premium, keep the loan to 5 years if you can afford the EMI, and stay floating unless your budget truly needs certainty. Rates reset every quarter, so check this page again before you sign.
Sources: bank rate schedules (Kartik 2083) via Byajdar; Nepal Bank and Kumari Bank published rates; Nepal Rastra Bank monetary policy FY 2083/84 and hire purchase directive (Sixth Amendment 2083), as reported by Republica and Meroauto; Meroauto reporting on NADA 2026 and NAIMA 2026 offers and NMB used EV financing. This article is for information only and is not financial advice. Rates change monthly; confirm with your bank.