Auto Loan vs Personal Loan for a Car in Nepal — Which Is Cheaper 2026?
All 17 banks ranked by auto loan rate for 2026 (Asar 2083), with a worked EMI example and the cost of the rate gap.
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 | NIC Asia | 7.49% | 7.49% (fixed) |
| 11 | Everest | 7.49% | 7.49% (fixed) |
| 12 | Siddhartha | 8.50% | 8.50% (fixed) |
| 13 | Global IME | 8.99% | 8.99% (fixed) |
| 14 | Nepal SBI | 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%), NIC Asia (7.49%), Everest (7.49%), Siddhartha (8.50%)
- Least competitive: Global IME (8.99%), Nepal SBI (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
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.
Frequently asked questions
Which bank has the cheapest auto loan in Nepal 2026?+
Nepal Bank, from 5.09% p.a., as of Asar 2083. The average is 7.27%.
How is the loan interest rate calculated?+
For a floating loan, rate = the bank's base rate + a fixed premium. Some banks offer a fixed rate for an initial period instead.
Will my EMI change during the loan?+
On a floating loan, yes — it resets when the bank's base rate changes. A fixed-rate period keeps it steady for a while.
What EMI should I expect on a Rs 20.00 lakh auto loan?+
At the cheapest rate (5.09%) over 7 years, about Rs 28,352 per month.
Does a longer tenure reduce my EMI?+
Yes, but it increases total interest. A longer term lowers the monthly payment but you pay more over the life of the loan.
What do lenders check before approving?+
Income and repayment capacity, the collateral value and LTV limit, your credit history, and the tenure you request.
Fixed or floating — which is better?+
Floating usually starts cheaper and benefits when rates fall; fixed gives predictable EMIs. Choose by how much rate certainty you want.
Where can I compare every bank's loan rate?+
On the BFIS Compare loan page, refreshed every Nepali month with each bank's effective rate.
Written by
Sandeep Kumar ChaudharyFounder of BFIS Compare, writing about Nepal's banks, deposit rates and loans. sandeepkumarchaudhary.com