Personal Loan Interest Rate in Nepal (Kartik 2083): Lowest Rates of All Banks, Loans Without Collateral & EMI

Last updated: 31 October 2026 (Kartik 14, 2083) · Rates effective from Kartik 1, 2083 · Category: Finance & NEPSE

Here is the short answer on the personal loan interest rate in Nepal this month: published floating rates at commercial banks start from about 4.59% to 4.84% per year (Agricultural Development Bank and Prime Commercial Bank), the median starting rate across 15 commercial banks is about 6.33%, and most banks quote ranges of roughly 5.5% to 9%. Fixed-rate personal loans cost more, from about 7.5% to 12%. Finance companies go up to about 13%.

But there is a catch most rate lists don’t mention. Those low numbers are mostly for secured personal loans, where you pledge land, a house or another asset. A true personal loan without collateral in Nepal is a much smaller product: usually up to Rs. 15 lakh, mostly for salaried people, and often priced higher. This guide shows the rates of every bank, explains how your own rate is set, compares the collateral-free options, works out real EMIs and covers the NRB limits and fees that decide what you actually pay.

Personal Loan Interest Rates of Commercial Banks (Kartik 2083)

The table shows each commercial bank’s published floating-rate personal loan or personal overdraft range for Kartik 2083, sorted by starting rate. The first number is the lowest rate the bank offers, usually to its strongest and best-secured borrowers. The second is the top of its published range. Banks name these products differently, so the product column tells you exactly what is being compared.

Source: BankByaj personal loan table, updated 31 October 2026, compiled from published bank schedules for Kartik 2083. Everest, Global IME, Siddhartha, Citizens and Machhapuchchhre Bank had no personal loan row in that table this month; check their websites directly. Treat all rates as indicative and get your own rate in writing.

What the commercial bank numbers tell us

• Seven banks start below 6%. ADBL, Prime, Nepal SBI, Himalayan, NIC Asia, Laxmi Sunrise and Nabil all publish starting rates under 6% this month.
• The widest ranges hide the most risk. Prime and ADBL both run 5 full percentage points from bottom to top. A borrower who lands at the top of Prime’s range (9.84%) pays more than the starting rate of every other bank in the table.
• Narrow ranges are easier to plan around. Rastriya Banijya Bank (0.25 point) and Standard Chartered (0.5 point) leave little room for surprise.
• Overdraft rows are not the same as term loans. Nabil, NIMB and NMB list overdraft products here. An overdraft charges interest only on what you use, but it is renewed every year and usually priced a little higher than a term loan.

Chart: Personal loan starting rates, Kartik 2083 (commercial banks)

Bar length scaled to 10%. Starting rates only; your rate depends on the premium the bank gives you.

Fixed-Rate Personal Loans in Nepal

A few banks offer a fixed personal loan rate, so your EMI stays the same for a set number of years. You pay for that certainty: fixed rates sit roughly 1 to 3 points above floating starting rates this month.

Sources: BankByaj (31 Oct 2026); Nepal SBI’s own loan rate schedule effective 1 Kartik 2083 (9.99% up to 5 years, 10.99% for 5–10 years, 11.99% above 10 years for personal term loans).

Personal Loan Rates at Development Banks & Finance Companies

Development banks (Class B) and finance companies (Class C) can help if a commercial bank turns you down, or if you live where they have the stronger branch network. Their starting rates look competitive, but their upper limits are much higher. The premium you are offered decides whether they are a good deal.

Source: BankByaj, 31 October 2026. A selection of institutions with published personal loan rates, not the full list.

Personal Loan Without Collateral in Nepal: What Is Actually Available

Most people searching for a personal loan want one without pledging land. In Nepal, that option exists but is narrower than many rate lists suggest. Nepali law does not require collateral for a loan, but banks hold very little unsecured lending in practice. A legal analysis by Sushil Parajuli notes that even the banks with the largest clean (unsecured) books hold only around 2% to 2.6% of their portfolio unsecured, and several large banks report none at all.

So, in practice, here is what you can get without collateral:

Sources: NIC Asia; Standard Chartered Nepal; ShareSansar on RBB Foneloan (March 2026); the foreign employment limit as reported by Fiscal Nepal on NRB’s revised directive, which also allows loans of up to Rs. 5 lakh for women with or without collateral. Card rates from our credit card in Nepal guide.

Why unsecured loans cost more and are harder to get

• The bank has nothing to sell if you default. So it prices in more risk. For example, Sanima Bank’s Smart Loan, an unsecured personal loan, was listed at 15% on NepseTrading BFIS, far above Sanima’s secured range.
• Income replaces collateral. Banks want a salary account (often at the same bank), a stable employer, or documented professional income.
• Your credit record matters more. A clean report at the Credit Information Centre (CICL) is close to essential.
• Self-employed? Expect to need collateral. Most collateral-free products are designed for salaried borrowers. Business owners usually get better terms with a personal mortgage loan.

How Your Personal Loan Rate Is Set: Base Rate + Premium

Most personal loans in Nepal are floating-rate loans. The rate is built in two parts:

How a floating personal loan rate is built

Current base rates and personal loan premiums

Sources: RBB base rate page; Nepal Bank base rate history and floating loan rates (effective Ashwin 1, 2083); Nepal SBI loan rates (effective 1 Kartik 2083); Kumari Bank loan rates (effective Ashwin 1, 2083).

Worked example: Nepal Bank’s applicable base rate is 4.38% and its published premium for a personal term loan of up to 10 years is 2.50 to 3.50 points. A strong borrower would pay about 6.88%; one at the top of the premium band would pay about 7.88%. That one-point gap is roughly Rs. 480 a month on a Rs. 10 lakh, 5-year loan, or about Rs. 29,000 over the loan.

Your protection: under NRB rules, the bank cannot raise the premium written in your accepted offer letter later in the loan. Your rate can still move because the base rate changes. Keep a copy of the offer letter.

What gets you closer to the low end

• A salary account at the same bank, or steady income with tax records.
• Collateral, or a smaller loan compared with the collateral value.
• A clean CICL credit report with no late payments.
• Low existing EMIs compared with your income.
• Shopping around: get written premium quotes from at least three banks.

Personal Loan EMI in Nepal: Rs. 5 Lakh and Rs. 10 Lakh

EMI formula: EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1], where P is the loan, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. Here is what a 5-year loan costs at the rates you are likely to see:

Our calculations using the standard reducing-balance EMI formula. Bank EMIs can differ slightly because of day-count and rounding methods.

Chart: Total interest on Rs. 10 lakh over 5 years

L = lakh. Paying a credit card at 24% instead of a bank loan at 6.33% costs about Rs. 5.6 lakh more on Rs. 10 lakh over 5 years.

How tenure changes your EMI (Rs. 10 lakh at 7%)

Stretching from 5 to 7 years lowers the EMI by about Rs. 4,700 but adds about Rs. 80,000 in interest. For a personal loan, the shortest tenure you can comfortably afford is usually the right one.

Personal Loan Fees in Nepal and the Real Cost

The interest rate is not the full cost. Before you compare banks, ask each one for these charges:

Personal Term Loan or Personal Overdraft?

Kumari Bank’s published premiums show the typical gap: base + 1.50 to 3.50 for a personal term loan versus base + 2.00 to 4.00 for a personal overdraft.

NRB Rules and Eligibility: How Much Can You Borrow?

Sources: NRB’s first-quarter monetary policy review for FY 2082/83 raising the limit to Rs. 1 crore, as reported by NepseTrading and Ratopati via Hamro Patro; the 50% debt-burden example from NIMB’s personal loan page; age limits from NIC Asia.

How much income do you need?

For a Rs. 10 lakh loan over 5 years at 7% (EMI Rs. 19,801), with no other loans:

Gross monthly income. If your EMIs already eat a big share of your salary, a smaller loan or a longer tenure will be easier to get approved.

Stress test: what if rates rise?

Because personal loans are short, a rate rise hurts less than on a 20-year home loan. Still, if your budget only works at today’s rate, borrow less.

The Cheapest Way to Borrow for Your Situation

The best “personal loan” is sometimes not a personal loan at all. Start from what you already have:

Personal Loan Documents and Application Process

Documents usually needed:

• Citizenship certificate (and national ID if issued), passport-size photos and PAN.
• Proof of income: salary certificate, employer letter and 6 to 12 months of bank statements; or business registration, tax returns and accounts.
• Relationship and marriage certificates where the bank asks for them.
• A declaration of loans from other banks (needed for the Rs. 1 crore limit check).
• For secured loans: lalpurja, land map, char killa, latest land tax receipt and the bank’s valuation.

Typical personal loan process

7-Point Checklist Before You Sign

1. Ask if the quoted rate is secured or unsecured.
2. Compare your premium, not the headline rate, from at least three banks.
3. Get every fee in writing: service fee, renewal, insurance, penalty interest.
4. Choose the shortest tenure you can comfortably afford.
5. Check prepayment terms in case you get a bonus or remittance early.
6. Keep total EMIs well under 50% of your income, and test at a rate 3 points higher.
7. Read the offer letter: rate type, premium, reset rules and charges.

Frequently Asked Questions

Final Verdict

The personal loan interest rate in Nepal is low right now. In Kartik 2083, the cheapest banks start below 5%, the median start is about 6.33%, and a typical salaried borrower can expect roughly 6% to 9% at a commercial bank. If you need a personal loan without collateral, expect a smaller limit, about Rs. 15 lakh at most, and a rate toward the upper end of each bank’s range.

Compare premiums rather than headline rates, ask whether the rate is secured or unsecured, count the fees, and keep the tenure short. 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, and if a bank asks for cover on your loan, see our ranking of the best life insurance in Nepal. Curious about app-only banking? Read about neo banks in Nepal.