KATHMANDU: The Employees Provident Fund (EPF) has introduced a vehicle loan scheme, allowing its contributors to finance the purchase of two-wheelers and four-wheelers.
The facility comes into effect following the implementation of the Employees Provident Fund Contributors’ Vehicle Loan Regulations, 2082, which have been effective since July 17, 2026.
The new regulations outline the eligibility criteria, loan limits, repayment period, collateral requirements, application process, and necessary documentation.
The EPF has prioritized electric vehicles under the new scheme.
Contributors can obtain a loan of up to Rs. 4.5 million or 70% of the purchase price of a new EV, whichever is lower.
For internal combustion engine (ICE) vehicles, the maximum loan is Rs. 4 million or 70% of the purchase price, whichever is lower.
The loan facility is available for both new and used vehicles. For new vehicles, the purchased vehicle and the contributor’s EPF savings will serve as collateral.
For used vehicles, borrowers must provide the purchased vehicle, their EPF savings, and land or property as collateral. The regulations state that a used four-wheeler must be less than five years old from the date it was first sold by an authorized dealer.
Loans for used vehicles will be limited to 60% of the lower value between the depreciated value and the vehicle’s technical valuation. Loans for new vehicles can be repaid over a maximum period of seven years, while loans for used vehicles must be settled within five years.
Borrowers are also allowed to repay the loan before the end of the tenure. The monthly installment cannot exceed 80% of the self-declared combined monthly income of the contributor and spouse.
To qualify, contributors must have made regular deposits to the EPF for at least three years and have at least six months of service remaining before retirement.
Applicants are required to submit the prescribed application form, an updated KYC record, a certified copy of their citizenship certificate, a recommendation from their office head, and other documents specified in the regulations.
According to the EPF, the new loan scheme aims to simplify access to vehicle financing, expand financial services for contributors, and promote the adoption of electric vehicles in Nepal.
