KATHMANDU : As electric vehicle (EV) adoption continues to grow in Nepal, NMB Bank has become the first bank in the country to introduce financing for used electric vehicles. The bank will provide loans of up to Rs 3.5 million for eligible pre-owned EVs.
EVs now account for around 70% of new private car sales in Nepal. While buyers can easily obtain loans for new EVs, the used EV market has remained underdeveloped. One of the main reasons is that banks have been reluctant to finance pre-owned electric vehicles due to concerns over resale value and market maturity.
NMB Bank has now decided to address this gap by launching refinancing for used EVs. According to Business Planning Manager Sujan Dhungana, the decision was made in response to growing market demand.
He said many early EV owners are looking to sell their vehicles and upgrade to newer models. However, buyers of used EVs have struggled to secure financing, making it difficult for the second-hand market to grow.
Dhungana added that Nepal Rastra Bank’s guidelines do not prohibit financing for used EVs. After approval from the bank’s board, NMB introduced the new loan product with stricter eligibility criteria to manage risks.
He believes the initiative will support Nepal’s transition to green mobility, improve the used EV ecosystem, and encourage wider EV adoption.
Loan tenure based on remaining warranty
Unlike new vehicle loans, which are available for up to seven years, loans for used EVs will be offered for a maximum of five years.
The repayment period will depend on the remaining battery and motor warranty. NMB follows a “remaining warranty minus one year” formula.
For example, if an EV originally comes with an eight-year battery warranty and is already three years old, the remaining warranty is five years. In this case, the buyer can receive financing for up to four years.
The bank also requires the battery to have at least 80% State of Health (SoH), certified by an authorized service center within the previous 30 days. For loan transfers or loan swaps, the battery health requirement increases to 90%.
In addition, the EV must be less than 10 years old, carry Auto Plus insurance, and belong to a brand and model that is still in production. The financed vehicle itself will serve as collateral.
Loan amount and interest rate
NMB Bank will finance up to 55% of the vehicle’s officially appraised value, compared with the 60% loan-to-value limit permitted under Nepal Rastra Bank regulations.
The standard maximum loan amount is Rs 3.5 million. However, customers with a strong credit history who meet additional requirements may qualify for loans of up to Rs 6 million.
The interest rate is calculated by adding a premium of 0.75% to 2.5% over the bank’s base rate.
With NMB’s current base rate at 5.11%, borrowers can obtain loans at interest rates ranging from 5.86% to 7.61%. The bank also charges a 0.75% processing fee.
Required documents
Applicants must submit the same basic documents required for a new vehicle loan, including proof of income, citizenship certificate, Permanent Account Number (PAN), and a passport-sized photograph.
Additional documents include the vehicle’s service record, an official valuation report, and a battery health certificate issued by an authorized dealer or service center.
Corporate applicants must also provide company registration documents, audited financial statements, tax clearance certificates, and a business projection report.
According to the bank, loan approval and delivery orders will be issued within one to two working days after all required documents are submitted.
