KATHMANDU: Commercial banks are fiercely competing to offer auto loans to car buyers. Targeting the ‘NADA Auto Show 2025,’ which began on August 19, banks have introduced auto loan schemes with low interest rates.
On one hand, the banking system currently has excess liquidity. Due to economic slowdown, banks have not been able to expand their business as expected, with funds sitting idle. Interest rates have also significantly decreased.
On the other hand, the NADA Auto Show is seeing a rush of customers booking and purchasing new vehicles, especially with festivals like Dashain and Tihar approaching, which typically boost vehicle sales. To attract these customers and expand their business, banks have rolled out affordable loan schemes.
Among the 20 commercial banks operating, eight are participating in the NADA Auto Show. These banks are offering auto loans with interest rates ranging from a minimum of 6.23% to a maximum of 8.25%. Banks have introduced both fixed and floating interest rate loan schemes, with some offering attractive plans specifically for electric vehicles. As per Nepal Rastra Bank’s regulations, banks can provide up to 60% financing for new vehicle purchases.
Bank wise interest rates
Agricultural Development Bank offers the cheapest loan at a minimum interest rate of 6.23%. It adds only a 0.36% premium to its base rate of 5.87%. The bank charges a 0.75% service fee for auto loans.
Nabil Bank offers auto loans at a minimum of 6.74% for up to 7 years, with a 0.5% service fee. It also provides a fixed-rate loan at 8.25% for 7 years with a 0.25% service fee.
Global IME Bank offers auto loans at 6.99% and a fixed-rate plan at 8.25% for 5 years.
Himalayan Bank provides auto loans at 7.57% by adding a 0.87% premium to its base rate, with a loan tenure of up to 8 years.
NMB Bank offers loans for electric vehicles at 7.13%. For a 5-year term, it provides loans at 8.89%.
Sanima Bank offers loans for electric vehicles at a fixed rate of 7.49%. For other vehicles, it provides loans at 7.99% for 5 years and 8.15% for 7 years. The bank claims to approve loans in 3 days with a 0.5% processing fee.
Nepal SBI Bank offers vehicle loans at 6.99% for tenures ranging from 3 to 7 years, with minimal processing fees.
Laxmi Sunrise Bank provides a fixed-rate loan at 7.99% for 7 years.
