An auto loan (car loan) lets you finance a new or used vehicle and repay in monthly instalments over a set term, typically 3 to 7 years in Nepal. The vehicle itself acts as collateral, which is why auto loan rates are usually lower than unsecured personal loans but higher than home loans.
Auto loan rates in Nepal vary between banks and depend on factors including the vehicle type (private car, SUV, electric vehicle), whether it is new or used, the loan-to-value ratio, and the borrower's credit profile. Some banks offer lower rates specifically for electric vehicles (EVs) as part of green financing initiatives. The table below ranks every bank currently publishing an auto loan rate, lowest first.
On a NPR 30 lakh car loan over 5 years, a 1% difference in the interest rate changes the monthly EMI by roughly NPR 1,200 and the total interest paid by approximately NPR 72,000 — which is why comparing rates before signing matters.
Lowest Auto Loan Rates in Nepal — Bank Comparison
0 BanksWhich bank has the lowest auto loan rate in Nepal?
The bank at the top of the comparison table above currently publishes the lowest auto loan interest rate. Rates are ranked lowest-first because a lower rate means a cheaper loan and lower monthly EMI.
What is the maximum tenure for a car loan in Nepal?
Most Nepali banks offer auto loan tenures of 3 to 7 years for private vehicles. Shorter tenures mean higher monthly payments but less total interest paid. Commercial vehicle loans may have different maximum tenures.
Do banks offer lower rates for electric vehicles in Nepal?
Yes. Several Nepali banks have green or EV loan products with lower interest rates to encourage the adoption of electric vehicles, in line with Nepal government and NRB policy. Check the specific bank's EV loan terms when comparing.
How much can I borrow for a car loan in Nepal?
Banks in Nepal typically finance 65–80% of the vehicle's on-road price, with the buyer paying the remaining 20–35% as a down payment. The exact percentage depends on the bank's policy and whether the vehicle is new or used.
Can I prepay an auto loan without penalty in Nepal?
Prepayment rules vary by bank. Some banks allow partial or full prepayment without penalty; others charge a fee for early repayment. Check the loan agreement carefully before signing if you plan to pay off the loan early.
What does the ✓ Verified badge mean?
A Verified badge means the rate was confirmed directly by the bank through Byajdar's partner portal rather than scraped from public sources. Verified rates always override scraped data for that bank and product.