Which Commercial Bank Has the Lowest Auto Loan Rate in Nepal? (2026)

The cheapest auto loan in Nepal for Asar 2083 (June 2026) starts at Nepal Bank — 5.09% p.a., against a market average of 7.27% and a high of 10.65% (ADBL). In Nepal a floating loan rate = base rate + a premium; the full ranking and what the gap costs you are below.

Cheapest auto loan rates — all 17 banks ranked

Lowest effective rate first, for Asar 2083.

Rank	Bank	Effective rate (from)	How it's priced
1	Nepal Bank	5.09%	4.59% + 0.50%
2	RBB	5.22%	4.22% + 1.00%
3	MBL	5.58%	5.08% + 0.50%
4	NMB	5.62%	5.12% + 0.50%
5	NIMB	5.80%	4.80% + 1.00%
6	Himalayan	5.81%	5.31% + 0.50%
7	Laxmi Sunrise	5.91%	5.16% + 0.75%
8	Prabhu	6.12%	5.12% + 1.00%
9	Kumari	6.77%	5.27% + 1.50%
10	Everest	7.49%	7.49% (fixed)
11	NIC Asia	7.49%	7.49% (fixed)
12	Siddhartha	8.50%	8.50% (fixed)
13	Nepal SBI	8.99%	8.99% (fixed)
14	Global IME	8.99%	8.99% (fixed)
15	Citizens	9.50%	9.50% (fixed)
16	Nabil	9.99%	9.99% (fixed)
17	ADBL	10.65%	10.65% (fixed)

Market snapshot

17 banks offer this loan from 5.09% to 10.65%, averaging 7.27% (median 6.77%). The 5.56-point gap between cheapest and dearest is large on a big, long loan — the worked example below shows exactly how much.

Worked EMI example

On a Rs 20.00 lakh auto loan over 7 years at Nepal Bank's 5.09%, the EMI is about Rs 28,352 per month, with total interest of roughly Rs 3.82 lakh. At the most expensive bank (10.65%) the EMI rises to about Rs 33,878 — around Rs 5,525 more every month, or Rs 4.64 lakh more in total interest over the term. Try your own figures on the EMI calculator.

How the rate is built (and fixed vs floating)

Most Nepali loans are floating: rate = the bank's base rate + a fixed premium, and it resets when the base rate moves with NRB policy. Some banks offer a fixed rate for an initial period — higher to start, but predictable. Lenders also weigh your income and repayment capacity, the collateral value and loan-to-value (LTV) limit, your credit history, and tenure. A lower rate with a longer tenure cuts the EMI but raises total interest.

Every bank, grouped by rate

• Most competitive: Nepal Bank (5.09%), RBB (5.22%), MBL (5.58%), NMB (5.62%)
• Upper tier: NIMB (5.80%), Himalayan (5.81%), Laxmi Sunrise (5.91%), Prabhu (6.12%)
• Lower tier: Kumari (6.77%), Everest (7.49%), NIC Asia (7.49%), Siddhartha (8.50%)
• Least competitive: Nepal SBI (8.99%), Global IME (8.99%), Citizens (9.50%), Nabil (9.99%), ADBL (10.65%)

How we sourced these figures

Every rate on this page is taken from each institution's published rate sheet for the Asar 2083 (June 2026) period and cross-checked against Nepal Rastra Bank (NRB) disclosures. We re-verify the numbers each Nepali month, and the comparison table and the figures quoted in the text are generated from the same dataset — so they always agree. You can explore the live, filterable data on the BFIS Compare comparison page.

Related comparisons

• Base rates of all banks
• Best fixed deposit rates
• EMI calculator

Rates are revised every Nepali month and can change. Figures are for Asar 2083; always confirm the current number on the BFIS Compare comparison page before you apply.

Auto / Vehicle Loan at Nepal's commercial banks: Financing Your Car or Two-Wheeler

An auto loan from Nepal's commercial banks lets you buy a car, jeep, van, or two-wheeler by paying only a part of the price upfront and repaying the rest in fixed monthly instalments. As a Nepal Rastra Bank (NRB)-regulated commercial bank, Nepal's commercial banks structures these loans as secured hire-purchase financing, where the vehicle itself is pledged to the lender until you clear the debt. This keeps interest costs lower than an unsecured personal loan and makes vehicle ownership realistic for salaried employees, professionals, and small-business owners.

How the loan works: down payment, LTV, tenure and hypothecation

Nepal's commercial banks finances a percentage of the vehicle's value, and you cover the balance as a down payment. This ratio is the loan-to-value (LTV), which NRB caps for autos; a larger down payment means a smaller loan and lower interest over time. The financed amount is repaid over a fixed tenure, typically shorter for two-wheelers and longer for four-wheelers, with cars generally allowing more years than motorcycles.

The loan is secured through hypothecation: Nepal's commercial banks is recorded as the lien holder on the vehicle's blue book (Bill Book) at the transport office. You use and register the vehicle in your name, but you cannot sell or transfer it until the loan is fully settled and Nepal's commercial banks releases the lien. Once you close the account, request a lien-release letter and update the blue book to remove the bank's charge.

EMI, interest and repayment

Repayment is by EMI (equated monthly instalment) — a fixed amount covering both interest and principal each month. At Nepal's commercial banks, the lending rate is set as the published Base Rate plus a premium, so your EMI can move if the Base Rate is revised on floating-rate loans. Early in the tenure most of the EMI is interest; later, more goes to principal. Missing EMIs invites penal charges and hurts your credit record with the Credit Information Bureau, which every commercial bank checks before lending.

Eligibility & documents

Nepal's commercial banks typically lends to Nepali citizens with a verifiable, stable income and an acceptable debt-servicing capacity. Common eligibility signals include a minimum age, regular salary or business turnover, and a clean credit history. Be prepared to satisfy KYC norms and submit:

• Citizenship certificate and passport-size photos of the applicant (and any guarantor).
• Income proof — salary certificate and recent bank statements, or business registration, PAN and audited/tax documents for the self-employed.
• Vehicle documents — the dealer's quotation or proforma invoice (pro-forma) and specifications.
• Completed loan application and, where required, a guarantor's details.

Insurance requirement

Comprehensive motor insurance is mandatory for the full loan tenure, with Nepal's commercial banks named as the beneficiary or loss-payee. This protects both you and the lender if the vehicle is stolen, damaged, or written off. You must renew the policy every year until the loan closes; letting it lapse is a breach of the loan terms. Factor annual premiums, registration, and tax into your true cost of ownership alongside the EMI.

Tips to get the best deal

• Increase your down payment. A bigger upfront share reduces the principal, the interest you pay, and your monthly EMI burden.
• Match tenure to affordability. A longer tenure lowers the EMI but raises total interest; a shorter one costs less overall.
• Ask about the premium and prepayment. Clarify the spread over the Base Rate and any charges for part-payment or early settlement so you can pay down faster later.
• Keep the debt-to-income ratio comfortable. Existing loans reduce how much Nepal's commercial banks will sanction, so consolidate or clear small dues first.
• Read all fees. Confirm service charges, insurance, and lien-release costs upfront to avoid surprises.

An auto loan from Nepal's commercial banks suits buyers with steady income who want to own a vehicle without draining savings — provided the EMI, insurance, and running costs fit comfortably within your monthly budget.