An overdraft lets you withdraw more than your account balance up to an agreed limit, and you pay interest only on the amount actually used. It is a flexible form of short-term credit, common for businesses managing uneven cash flow.
Overdraft rates vary between banks and often depend on the collateral or deposit backing the facility. The table below ranks every bank publishing an overdraft rate, lowest first, since a lower rate means cheaper borrowing.
Lowest Overdraft Rates in Nepal — Bank Comparison
1 Bank| # | Bank | Interest Rate | Action |
|---|---|---|---|
| 1 |
NBL
Nepal Bank LimitedLowest
|
9.60% |
Which bank has the lowest overdraft rate in Nepal?
The bank at the top of the table above currently publishes the lowest overdraft interest rate. Overdrafts are ranked lowest-first because a lower rate costs less to use.
How does an overdraft differ from a loan?
A loan gives you a fixed amount repaid on a schedule; an overdraft is a revolving limit you draw on as needed, paying interest only on what you use. Overdrafts suit fluctuating short-term needs.
Do I need collateral for an overdraft in Nepal?
Overdraft facilities are commonly secured against property or a fixed deposit. The limit and rate often depend on the value of that security. Terms vary by bank.
What does the ✓ Verified badge mean?
It means the rate was confirmed directly by the bank through Byajdar's partner portal. Verified rates override scraped data for that bank and product.