Buying a brand new car on this Dashain 2082 no longer feels like it's out of reach anymore. Why? Thanks to car finance in Nepal, families with a regular background can now upgrade their two-wheeler lifestyles to four without emptying their savings.
Whether you need a car with the best mileage for daily commutes or a sturdy one for long Himalayan road trips, banks today offer competitive auto loans in Nepal to ensure you are able to ride your dream car. But with so many options available, one big but very important question remains, and that is: Which bank offers the best car loan in Nepal?
So, in this guide from Saral Banking Sewa, we will break down the latest car loan interest rates, top banks, eligibility criteria, and tips to help you pick the smartest deal.
Car finance, also known as an auto loan, is money borrowed from a bank to purchase a vehicle and repay it in easy monthly installments (EMIs). In Nepal, it applies to new or used cars, private or commercial vehicles, and even electric vehicles (EVs).
Now, here are a few major terms that you need to know before applying for car finance in Nepal:
1. Interest Rates: Banks in Nepal offer two types of interest rates on car finance or auto loans, and they are,
2. Loan Tenure: Usually, auto loan or car finance loan tenure often ranges from 3 to 10 years, though some banks stretch up to 12 years under special schemes. Here, shorter tenure means you will have to pay higher EMIs but less total interest. Whereas choosing a longer tenure eases your repayment with lower EMIs but more total interest.
3. Other Costs: Down payment (at least 40%), VAT, insurance, documentation fees, and sometimes prepayment penalties.
4. Loan-to-Value Ratio: As per Nepal Rastra Bank, most banks finance up to 60% of the vehicle price, meaning you’ll need to cover at least 40% upfront.
Understanding these elements helps you see the true cost of a loan and find a transparent deal that fits your budget.
Here’s a brief overview of what the top banks are offering this September 2025.
Getting a car loan in Nepal isn’t complicated, but banks do have clear requirements to ensure you can comfortably repay the loan. While details may vary slightly across institutions, here are the standard eligibility criteria you should be ready for:
To land the best car loan in Nepal, you need to look beyond the headline interest rate. Consider these criteria:
Car ownership in Nepal is becoming easier than ever, thanks to affordable auto loan options designed for different income groups. Whether you’re exploring offers from NIC Asia, Nabil Bank, Siddhartha Bank, or Global IME, each lender has unique perks and trade-offs.
The real challenge? Finding the one that fits your financial lifestyle. That’s where Saral Banking Sewa comes in. Instead of visiting multiple bank websites or branches, you can use our platform to:
If you’re serious about getting the best deal on car finance in Nepal, don’t just settle for the first option. Use Saral Banking Sewa to make an informed choice, balance affordability with convenience, and drive away with confidence.
After all, your car should take you forward, not set your finances in reverse.
In terms of interest rates, as of Ashwin 2082, Nepal Bank Limited is the best bank for car finance in Nepal.
Except for special offers or schemes, banks in Nepal generally offer a maximum auto loan tenure of 10 years for new private cars but shorter terms for used cars. Some special categories (commercial, EVs, etc.) may allow more flexible terms.
Nabil Bank currently offers auto loans with a competitive fixed interest rate of 9.99% for up to 5 years and 10.49% for above 5 years.
While the documents required for an auto loan may vary with banks, some of the standard documents are a citizenship certificate, proof of age, income proof (salary slips/business income/tax return), bank statements, vehicle quotation invoice, insurance estimate, possibly a guarantor or collateral, depending on the bank and amount.
For most private non-EV and EV cars, you’ll need about 40% of the vehicle’s valuation as a down payment (due to NRB’s LTV rule).
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