Buyers planning to purchase a vehicle this Dashain and Tihar can access auto loans with interest rates below 5 percent. High liquidity in the banking sector has triggered intense competition among commercial banks to attract borrowers.
Average base rates have dropped to 4.75 percent. Banks are now offering loans by adding a premium of only 0.5 to 1 percent to their base rates. Rastriya Banijya Bank currently has one of the lowest base rates in the banking sector, with a three-month average of 4.01% as of September 21, 2026. Nepal Bank also maintains a low base rate, with a three-month average of 4.41% as of Ashoj 7, 2083.
Key festive offers include:
- Nepal Bank: 4.90 percent interest rate with a 5-year tenure and a free lifetime credit card up to Rs 3 lakh. Its retail fixed-rate schedule lists auto loans at 7.99% for five years and 8.50% for seven years, while its EV loan is listed at 7.90% for five years and 8.50% for seven years.
- Rastriya Banijya Bank: 4.90 percent interest rate for loans up to Rs 1 crore with a maximum 7-year tenure.
- Nabil Bank: 5.17 percent interest rate with up to 60 percent financing of the VAT bill for new private vehicles, including EVs, and loans of up to Rs 8 million.
Other institutions, including Everest Bank, Global IME, and Siddhartha Bank, are providing loans in the 5.5 percent range. Some banks also offer fixed interest rates between 6.5 and 9 percent for up to 7 years. This festive season provides a rare opportunity to secure low-cost financing for new vehicles.
Customers who booked vehicles during the recent NAIMA Nepal Mobility Expo and NADA Auto Show are beginning to take deliveries, increasing demand for auto financing. Auto loans can generally be taken for up to seven years, making them an important long-term lending product for banks.
Documents required for an auto loan include proof of identity, income, and the vehicle being purchased. Nepal Bank requires a borrower to be a Nepali citizen at least 18 years old with a stable and regular source of income to repay the loan. Common documents include citizenship or National Identity Card, passport-size photographs, and family or relationship documents where required. Salaried customers may need a salary certificate, appointment letter, and recent bank statements, while self-employed customers generally need business registration documents, PAN/VAT certificates, audited financial statements, and tax-related documents.
Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.
