KATHMANDU: Banks are competing to offer cheaper vehicle loans during the ongoing NADA Auto Show 2026.
Several banks have introduced special auto loan schemes targeting visitors looking to purchase vehicles at the six-day event in Bhrikutimandap, Kathmandu. The 18th edition of NADA Auto Show is being held from August 25 to 30.
The lower interest rates come as banks have ample liquidity and weak credit demand. Banks are also expecting vehicle sales to rise during the auto show and the upcoming festive season.
Most banks have kept the premium over their base rate at around 0.5 percentage points. Five banks are offering auto loans at rates below 5.20%.
Nepal Bank: 4.94%
Nepal Bank is offering the lowest rate among the major banks at the NADA Auto Show. It is providing auto loans at the bank’s base rate plus a 0.49% premium.
Based on the applicable base rate, the interest rate comes to around 4.94%. The bank is charging a 0.5% service fee under the scheme. Customers taking the loan will also receive a lifetime credit card facility of up to Rs. 300,000 without an additional fee.
Rastriya Banijya Bank: 5.02%
Rastriya Banijya Bank is offering auto loans at 5.02%. The bank is providing financing of up to Rs. 10 million for a maximum period of seven years. The processing fee has been set at 0.5% of the loan amount.
Nepal Investment Mega Bank: 5.13%
Nepal Investment Mega Bank is offering auto loans at 5.13% under its NADA special scheme. The bank has kept the processing fee at 0.5%. Its auto loan rate is also listed at 5.13% for vehicle financing.
Nabil Bank: 5.17%
Nabil Bank has launched an auto loan scheme at 5.17% for NADA Auto Show customers. The bank is offering financing of up to 60% of the vehicle value. The service charge is 0.5%. The offer is available during the NADA Auto Show.
Global IME Bank: 5.17%
Global IME Bank is also offering auto loans at 5.17% during the NADA Auto Show. The bank is charging a 0.5% service fee. It has also introduced separate fixed-rate financing schemes for EV buyers.
Other banks
Kumari Bank is offering auto loans at 5.21%, slightly above the five-bank group. The bank has set the service charge at 0.5%. Laxmi Sunrise Bank is offering EV loans at 5.49%.
Agricultural Development Bank is offering vehicle loans at 5.66% under its NADA scheme, while NIC Asia Bank has a 5.99% fixed-rate auto loan for up to seven years.
Prabhu Bank is offering vehicle loans at its base rate plus a 0.50% premium. The bank’s NADA offer also carries a 0.5% service charge. Muktinath Development Bank has announced an auto loan rate of 5.54% for the NADA Auto Show.
The sharp competition among banks has pushed vehicle financing rates close to 5%. However, buyers should compare the total loan cost, including the applicable premium, service charges and loan tenure, before choosing a lender.
