Comparison of Mortgage Loan Rates in Nepal
30 Jan, 2025

Find the Best Mortgage Loans in Nepal: Rates & Comparison Made Easy!

Whether you’re planning to buy a house, expand your business, or fulfill any other personal needs, a mortgage loan can be your financial bridge. However, finding the right mortgage loan is your first major hurdle. Since your decision impacts your finances and future for the entire lifespan of the loan, many find the process of finding the best options overwhelming.

But don’t worry! In this blog post, we have simplified the process by breaking down the difference between mortgage and home loan, available options, and comparison of rates, along with step-by-step tips to help you find the most suitable deal. So, without further ado, let’s get started.

Graphical representation of Mortgage Loan Rates in Nepa

What is a Mortgage Loan?

A mortgage loan is a type of personal loan where you, as a borrower, put your immovable property, such as a house, land, or commercial assets, as collateral to secure the loan. In Nepal, banks typically offer mortgage loans under two schemes: term loans and overdraft facilities. 

  1. Term Loan: In a mortgage term loan, you repay the borrowed amount over a fixed period in equal installments (EMI). This type of loan is ideal for long-term investments as the repayment period is usually up to 25 years. The interest rate on mortgage term loans is generally lower than on mortgage overdraft loans.
  2. Overdraft Loan: It is a flexible type of loan where you can withdraw money up to a predetermined limit from your bank account, even when your balance is zero. Unlike term loans, overdraft loans are typically suitable for short-term needs. It can be renewed annually, and interest is charged only on the amount you use and for the duration of its use.

Although many often use the terms mortgage loan and home loan interchangeably, they are not the same in terms of flexibility and scope. A home loan is specifically for purchasing, constructing, or renovating a house, with the property itself serving as collateral. 

On the other hand, a mortgage loan is an umbrella term that refers to any loan secured by placing immovable assets as collateral. Whether for personal or business financial needs, mortgage loans offer greater flexibility in terms of how the loan can be used.

Besides the flexibility in financing type, there are several other common features of mortgage loans, such as flexible loan tenure, repayment options, etc, that Nepalese banks typically offer. To learn more about these features, including eligibility criteria and necessary documents list, you can visit Saral Banking Sewa’s mortgage loan description page.

Overview of Mortgage Loans in Nepal

Current Mortgage Loan Interest Rates in Nepal 2081!

As of the fiscal year 080/081, Nepal's current mortgage loan interest rate remains between 7.56% and 12.37% across various banks and financial institutions. After the latest revision of interests at the start of the third quarter, Nepal Bank Limited has the lowest floating interest rate of 6.21% to 10.71%, and Nabil Bank has an 8.49% fixed interest rate for mortgage loans up to Rs. 2.5 crores.

Here is a brief overview of mortgage loan interest rates of various banks in Nepal 2081.

BankInterest Rate (For Magh)
FixedFloating
Nepal BankN/A6.21% - 10.71%
Agriculture Development BankN/A6.78% - 9.78%
Nabil Bank8.49%7.56% - 9.81%
NMB Bank13%7.92% - 9.92%
Machhapuchhre Bank10%8.14% - 11.14%
Sanima Bank10.50%8.4% - 10.4%

If you want to find out mortgage loan rates in other banks and compare them side by side, use our mortgage loan comparison tools in Saral Banking Sewa.

Tips for Finding the Best Mortgage Loans in Nepal 2081

Like any other loan, a mortgage loan is equally important as it greatly influences your finances in the long run. So, you should not make any hasty decision when it comes to choosing a mortgage loan. 

Here are the six easy tips you should follow to find the most suitable mortgage loan for you without any hassle.

1. Set a Realistic Budget

Your first and foremost step while choosing a mortgage loan option should be determining how much you can afford to pay monthly without hampering your finances. You can use Saral Banking Sewa’s EMI calculator tool to estimate your monthly payments after providing the loan amount, interest rate, and loan tenure.

2. Understand Loan Features/Options

Instead of relying solely on banks to explain the features of mortgage loans, you can conduct your own research beforehand. This preparation will help you know what to expect, helping you to ask the necessary questions to avoid any hidden charges.

While you are at it, be sure to check interest rates, type of interest (floating or fixed), maximum loan amount, repayment period flexibility, processing fees, prepayment penalties, and eligibility criteria of the mortgage loan. 

Now, visiting each bank's website and looking for details is a hassle. But don’t worry! You can do all that at Saral Banking Sewa with our financial tools.

3. Consider the length of the mortgage loan

While a mortgage loan with a longer tenure may seem like a better fit, it isn't necessarily an ideal choice for two reasons: higher interest rates and significantly greater total interest expenses over the life of the loan. 

For example, Nabil Bank charges 8.49% interest on mortgage loans (Rs. 2.5 crores) for up to 5 years. However, they charge 9.99% interest for loan tenure above 5 years to 10 years and 10.49% for above 10 years to 15 years.

If you can afford a higher monthly payment, opting for a shorter loan duration can help you reduce the total interest paid over the life of the loan. You can use Saral Banking Sewa's EMI calculator to see how interest amounts vary with different loan tenures.

4. Use Saral Banking Sewa to Research & Compare Interest Rates

Remember, every bank or financial institution claims they have the most suitable mortgage loans for you. So, it’s a must to conduct research of your own and compare every offer to find the ideal option that meets your needs. 

To make this process effortless, use our loan comparison tool, which has brought all banks providing mortgage loans together with their latest applied interest rates.

5. Be Prepared for Upfront Costs

Once you have the proper estimation, you can start preparing for the upfront costs, like down payment, processing charges, closing costs, etc, all while gathering the necessary documents for securing the loan. Click here to find out what documents you need to apply for the mortgage loan.

6. Stay Informed About Latest Market Trends

Keeping up with market trends is essential, as they directly impact interest rates, loan policies, and regulations. Staying updated ensures you make strategic decisions that align with your long-term financial goals. Subscribe to our Saral Banking Sewa’s newsletter for timely blog posts and updates on the latest market developments.

The Best Mortgage Loans Available

Final Verdict

Finding the best mortgage loan in Nepal is no longer an overwhelming experience. With Saral Banking Sewa, you can easily find out which bank or financial institution provides the best mortgage loan deals and allows you to compare every option side by side, ensuring you make an informed decision every time. As of Magh 2081, Nepal Bank Limited has the best mortgage loan offers in terms of competitive interest rates.