Private Vehicle Loan (5-7 yrs)

An Auto / Vehicle Loan is secured term financing offered by Nepali commercial banks, development banks and finance companies to help individuals and businesses buy a new, reconditioned or (in some cases) used motor vehicle — private cars, two-wheelers, electric vehicles or commercial vehicles. The vehicle itself is taken as collateral: the bank registers a lien (first-party charge) on the blue book until the loan is fully repaid. Per current Nepal Rastra Bank directives (FY 2082/83), banks finance up to 60% of the vehicle's quotation/VAT-bill value for both fossil-fuel (ICE) and electric vehicles, so the borrower must arrange at least 40% as a down payment. It is repaid in Equated Monthly Installments (EMI) over a tenure of up to 7 years, on a fixed or floating (base rate + premium) interest basis.