Auto Loan In Nepal
Last Updated: December 25, 2023
Ready to hit the road with your dream wheels in Nepal? We’ve got your back! In this guide, we’ll break down the basics of auto loans, giving you the lowdown on interest rates and loan options from different banks.
Whether you’re eyeing a cool bike or a family car, financing shouldn’t be a puzzle. Join us as we simplify the journey to vehicle ownership. We’ll help you understand the key details, from interest rates to special loan schemes. So, let’s rev up your knowledge and cruise through the world of auto loans in Nepal – your shortcut to driving your dreams!
List of Banks Offering Auto Loans
| BFI Name | Loan Type | Interest Rate | Tenure | Link |
| Nabil Bank Limited | Private | 11.3 – 13.3% | Up to 7 Yrs | Visit |
| Nabil Bank Limited | Commercial | 12.3 – 13.3% | Up to 5 Yrs | Visit |
| Nabil Bank Limited | Tractor loan | 12.3 – 13.3% | Up to 7 Yrs | Visit |
| Nabil Bank Limited | EV Private | 10.3 – 12.3% | Up to 7 Yrs | Visit |
| Nabil Bank Limited | EV Commercial | 12.3 – 13.3% | Up to 7 Yrs | Visit |
| Nepal Investment Mega Bank | Auto Loan | 14.83% | N/A | Visit |
| Himalayan Bank Limited | Private | 10.86 – 15.86% | Up to 7 Yrs | Visit |
| Himalayan Bank Limited | Commercial | 10.86 – 15.86% | Up to 8 Yrs | Visit |
| Nepal SBI Bank Limited | N/A | 10.25 – 10.25% | N/A | Visit |
| Everest Bank Limited | Personal | 10.81 – 12.81% | Up to 7 Yrs | Visit |
| NIC Asia Bank Ltd. | Auto Loan | 13.7% | Up to 10 Yrs | Visit |
| Machhapuchhre Bank Limited | Auto – Specific | 10.41 – 12.41% | Up to 10 Yrs | Visit |
| Machhapuchhre Bank Limited | Auto – Normal | 10.91 – 12.91% | Up to 10 Yrs | Visit |
| Machhapuchhre Bank Limited | Commercial-Specific | 10.41 – 12.41% | Up to 10 Yrs | Visit |
| Machhapuchhre Bank Limited | Commercial-Normal | 11.91 – 13.91% | Up to 10 Yrs | Visit |
| Laxmi Sunrise Bank Limited | Auto Loan | 10.75 – 14.75% | Up to 9 Yrs | Visit |
| Kumari Bank Limited | Private | 12.27 – 14.27% | Up to 7 Yrs | Visit |
| Siddhartha Bank Limited | Auto Loan | 12.5 – 13% | Up to 10 Yrs | Visit |
| Sanima Bank Limited | Private/Commercial | 11.08 – 13.08% | N/A | Visit |
| NMB Bank Limited | Personal | 9.81 – 13.81% | Up to 10 Yrs | Visit |
| NMB Bank Limited | Commercial | 9.81 – 14.81% | Up to 10 Yrs | Visit |
| NMB Bank Limited | Personal | 9.81 – 12.81% | Up to 10 Yrs | Visit |
| NMB Bank Limited | EV-Commercial | 9.81 – 13.31% | Up to 10 Yrs | Visit |
| Prabhu Bank Limited | Personal | 11.94 – 13.94% | Up to 5 Yrs | Visit |
| Citizens Bank International Limited | Private | 13.75% | Up to 10 Yrs | Visit |
| Citizens Bank International Limited | Commercial | 13.75% | Up to 5 Yrs | Visit |
| Prime Commercial Bank | Private/Commercial | 10.49 – 15.49% | N/A | Visit |
| Agricultural Development Bank | Auto Loan | 10.01 – 12.01% | N/A | Visit |
| Nepal Bank Limited | Private | 8.96 – 13.96% | Up to 7 Yrs | Visit |
| Nepal Bank Limited | Commercial | 8.96 – 13.46% | Up to 5 Yrs | Visit |
| Narayani Development Bank Limited | Auto Loan | 13.5 – 15.5% | N/A | Visit |
| Excel Development Bank | Private/Commercial | 11.19 – 15.19% | N/A | Visit |
| Lumbini Bikas Bank | Private/Commercial | 14.5% | Up to 5 Yrs | Visit |
| Mahalaxmi Bikas Bank | Auto Loan | 14.39% | N/A | Visit |
| Garima Bikas Bank Limited | Auto Loan | 15.25 – 16% | Up to 10 Yrs | Visit |
| Karnali Development Bank Limited | HP Loan | 12.16 – 17.16% | N/A | Visit |
| Shangrila Development Bank | Private/Commercial | 11.17 – 15.16% | Up to 7 years | Visit |
| Shine Resunga Development Bank | Private/Commercial | 13.96 – 15.96% | N/A | Visit |
| Muktinath Bikas Bank | Auto Loan | 11.32 – 15.82% | N/A | Visit |
| Sindhu Bikash Bank | HP Loan | 12.03 – 17.03% | N/A | Visit |
| Green Development Bank | Auto Loan | 13% | Up to 10 Yrs | Visit |
| Saptakoshi Development Bank | HP Loan | 12.28 – 15.28% | N/A | Visit |
| Nepal Finance Ltd. | Auto Loan | 15% | Up to 5 Yrs | Visit |
| Gurkhas Finance Ltd. | Auto Loan | 14% | Up to 5 Yrs | Visit |
| Best Finance Company Ltd. | HP Loan | 14.58% | N/A | Visit |
| Goodwill Finance Limited | HP Loan | 13 – 16% | Up to 7 Yrs | Visit |
| Pokhara Finance Ltd. | Auto Loan | 15.25% | Up to 10 Yrs | Visit |
| Janaki Finance Company Limited | HP Loan | 13.28 – 16.25% | N/A | Visit |
| ICFC Finance Limited | Auto Loan | 14% | Up to 7 Yrs | Visit |
Eligibility Criteria
Here’s a simple checklist to make sure you qualify for an auto loan:
Age:
- Be between 21 and 60 years old. It helps banks know you can manage the loan over time.
Money:
- Show you have a steady income, whether from a job or business. Share your salary slips or income details.
Down Payment :
- Have cash ready for a down payment. This upfront payment varies, so check with the bank.
Loan Details Check:
- Know the bank’s rules on loan amounts and duration. Make sure it fits your budget.
Security or Guarantor:
- Depending on the bank and loan amount, be ready to offer security or have someone vouch for you.
Paperwork Sorted:
- Get your documents in order – ID, address proof, income details, and info about the vehicle you want.
Ready to roll? Check with your chosen bank for any specific details. Follow these steps, and you’ll be hitting the Nepali roads in no time.
Application Process
Let’s break down the easy steps to apply for an auto loan:
Choose Your Bank:
- Pick a bank that suits your needs. Check their auto loan offerings and interest rates.
Gather Information:
- Collect all necessary documents – ID, address proof, income details, and vehicle information.
Visit the Bank:
- Head to the bank with your documents. You might need an appointment, so call ahead.
Meet the Bank Officer:
- Discuss your plan with a bank officer. They’ll guide you through the application process.
Submit Your Application:
- Complete the application form and submit it along with your documents. Double-check for any additional requirements.
Wait for Approval:
- Now, it’s time to wait. The bank will review your application and documents. This process can take some time.
Get Loan Approval:
- Once approved, the bank will notify you. Review the terms and conditions before moving forward.
Vehicle Verification:
- Some banks may require a vehicle check. Ensure your chosen vehicle meets the bank’s criteria.
Sign the Agreement:
- Head back to the bank, sign the agreement, and complete any remaining formalities.
Receive Funds:
- After everything’s in order, the bank will disburse the loan amount, and you’re ready to drive away!
Remember, each bank may have slight variations in their process, so stay in touch with your chosen bank throughout
Tips for Choosing the Right Auto Loan
Getting the best deal on your auto loan in Nepal is key to a smooth ride. Here are some simple tips to help you make the right choice:
Compare Interest Rates:
- Check out interest rates from different banks. Even a small difference can save you money in the long run.
Understand Loan Terms:
- Know the loan duration and monthly payments. Longer terms may mean lower monthly payments but can cost more overall.
Evaluate Additional Costs:
- Consider additional fees or charges. Some loans may have hidden costs, so read the fine print.
Special Schemes and Offers:
- Explore special schemes or promotions. Banks often have tailored offers for specific vehicles or customer profiles.
Flexible Repayment Options:
- Look for flexibility in repayment. Some banks offer options like early repayment without penalties.
Check Eligibility Criteria:
- Ensure you meet the bank’s eligibility criteria. This avoids surprises during the application process.
Down Payment Considerations:
- Assess the down payment requirement. A higher down payment may reduce your monthly installments.
Customer Service Reputation:
- Research the bank’s customer service reputation. A responsive and helpful team can make the process smoother.
Read Customer Reviews:
- Look for customer reviews or testimonials. Real experiences can provide insights into the bank’s reliability.
Get Professional Advice:
- If needed, consult with financial advisors. They can offer personalized guidance based on your financial situation.
Prepayment Penalties:
- Be aware of prepayment penalties. Some loans charge extra if you pay off the loan early.
Insurance Requirements:
- Understand the bank’s insurance requirements. Some banks may have specific insurance conditions for the financed vehicle.
Remember, the right auto loan is more than just the interest rate. Consider all aspects, and choose the option that aligns with your financial goals and lifestyle. Safe travels!