Car Loan in Nepal 2083/84: Down Payment, EMI and the Cheapest Banks
Before you visit a showroom, know three numbers: how much the bank will lend, what rate you will really pay, and what the EMI does to your monthly budget.
- For a private car, jeep or two-wheeler, banks can lend at most 60% of the vehicle's value (NRB rule). You pay at least 40% upfront.
- Auto loans are priced as base rate + premium. Each bank publishes a range; most borrowers land between the two ends.
- On a Rs 24 lakh loan over 5 years, a 1-point difference in rate changes the total interest by roughly Rs 65,000.
- Ask for the full cost in writing: rate, premium, service fee, insurance and prepayment charges.
यो गाइड नेपालीमा पनि पढ्नुहोस्: नेपालमा गाडी कर्जा २०८३/८४: डाउन पेमेन्ट, मासिक किस्ता र सस्तो ब्याज दिने बैंक
How much will the bank lend?
Nepal Rastra Bank caps vehicle loans by the loan-to-value ratio. For any private vehicle, whether petrol, diesel or electric, the cap is 60% of the vehicle's value. Large electric vehicles used for public transport are the exception: banks can lend up to 80% for those.
| Car price | Maximum loan (60%) | You pay upfront (40%) |
|---|---|---|
| Rs 25 lakh | Rs 15 lakh | Rs 10 lakh |
| Rs 40 lakh | Rs 24 lakh | Rs 16 lakh |
| Rs 60 lakh | Rs 36 lakh | Rs 24 lakh |
Registration, insurance and the bank's fees come on top of the down payment, so budget a little more than 40%.
Today's lowest auto loan rates
| Bank | Interest rate |
|---|---|
| Agricultural Dev. Bank | 4.55% – 6.55% |
| Prime Commercial Bank | 4.87% – 9.87% |
| Nepal Bank Limited | 4.91% – 6.91% |
| Citizens Bank Int'l | 4.97% – 7.47% |
| Excel Bikas Bank | 4.99% – 8.99% |
| Nepal Investment Mega Bank | 5.05% – 7.05% |
| NABIL Bank | 5.16% – 7.16% |
| Everest Bank | 5.18% – 7.18% |
| Rastriya Banijya Bank | 5.36% – 6.01% |
| Machhapuchchhre Bank | 5.43% – 7.43% |
The first figure is the starting rate: the bank's base rate plus its lowest premium, which goes to its strongest borrowers. The second is the top of its published range. Your rate will usually fall in between, depending on your income, the vehicle and your history with the bank. See every bank on the vehicle loan comparison.
What the EMI really looks like
| Tenure | Lowest starting rate (4.55%) | Median starting rate (5.68%) | Median top of range (8.42%) |
|---|---|---|---|
| 5 years | Rs 44,798 | Rs 46,042 | Rs 49,147 |
| 7 years | Rs 33,416 | Rs 34,694 | Rs 37,911 |
A longer tenure lowers the EMI but adds interest. Most banks offer 5 to 7 years for a private car; a few go longer. If you can afford the higher EMI, the shorter loan is cheaper overall.
Floating or fixed?
Most auto loans are floating: when the bank's base rate moves, your rate moves with it. Several banks also sell fixed-rate auto loans, usually priced higher than today's floating starting rate. A fixed rate costs more now but protects you if rates rise over the next five years. Base rates in Nepal are low at the moment, so ask yourself whether you would rather lock that in or take the cheaper floating rate and accept the risk.
Bank loan or hire purchase?
Finance companies and some dealers offer hire purchase, where the finance company owns the vehicle until you finish paying. The same 60% limit applies. Hire purchase can be quicker to approve, but the rate is often higher, so compare it against the bank tables above before you agree.
Before you sign: checklist
- Get quotes from three banks, including your salary bank, which may give you a lower premium.
- Ask for the premium in writing, not just "base rate plus".
- Add up the full cost: service fee, valuation, comprehensive insurance (required while the loan runs) and documentation charges.
- Check prepayment terms if you may clear the loan early.
- Remember the blue book: the bank is recorded as the financier until you repay, and you need its release letter to sell the car.
Frequently asked questions
How much down payment is needed for a car loan in Nepal?
At least 40% of the vehicle's value for a private car, jeep or two-wheeler, because NRB caps the loan at 60%. On a Rs 40 lakh car that means Rs 16 lakh upfront and a loan of up to Rs 24 lakh.
Which bank has the lowest car loan interest rate in Nepal?
It changes as base rates move. The table in this article and the Byajdar vehicle loan page rank every bank by its starting rate, updated daily.
What is the maximum tenure for a car loan in Nepal?
Most banks offer 5 to 7 years for private vehicles, and some products go up to 10 years. A longer tenure lowers the EMI but increases the total interest.
Is the car loan rate fixed or floating?
Most are floating (base rate plus a premium), so the rate changes when the bank's base rate changes. Some banks offer fixed-rate auto loans at a higher starting rate.
Can I get a car loan on a second-hand car in Nepal?
Yes, many banks finance used vehicles, but the loan is based on the bank's valuation of the car and the tenure is often shorter. The 60% cap still applies.
Rates and rules change. Byajdar is not a bank or a licensed adviser; confirm the current terms with the bank before you borrow.
Compare before you borrow: Compare every bank's auto loan rate → Or get matched with Find My Bank →