Kumari Bank and GIZ Nepal Partner to Launch Digital Financing for Electric Public Transport Export to Sheets

Electric Micro Minibus Financing

10th October 2025 Kathmandu

In a significant push for sustainable mobility, Kumari Bank Limited (KBL)  have executed a Memorandum of Understanding (MoU).

Electric Micro Minibus Financing

This landmark agreement, established under the Sustainable Electric Transport for Nepal (SET4NPL) project, launches crucial financial and digital support.

The goal is to aggressively strengthen the adoption of electric mobility across Nepal. The partnership specifically focuses on Electric Micro Minibus Financing Nepal, making green vehicles accessible to public transport operators.

This strategic alliance is expected to support innovative financial and digital mechanisms. These efforts specifically target the accelerated adoption and widespread operation of electric public transport vehicles.

By offering affordable financial access, KBL and GIZ directly support the transition to Electric Micro and Minibuses (EMBs). This removes a significant barrier for local operators facing high initial purchase costs.

Fueling the Transition to Green Fleet

Economic constraints often hinder the shift from traditional fossil fuel-based vehicles to cleaner electric alternatives.

This new initiative from Kumari Bank and GIZ addresses this challenge head-on. The partnership offers a special, tailored financial scheme or loan package. Crucially, it includes an initial down payment subsidy for vehicle operators.

This arrangement dramatically reduces the upfront purchase cost for electric vehicles. Consequently, the bank makes the acquisition of EMBs economically feasible and attractive.

The financial support structure encourages transport entrepreneurs nationwide to invest in a cleaner, more sustainable future for public transport. Ultimately, this directly impacts the country’s environmental goals.

SET4NPL: A Vision for Sustainable Transport

The SET4NPL project itself represents a powerful joint initiative. GIZ Nepal and the Global Green Growth Institute (GGGI) implement the program.

They collaborate closely with the Ministry of Physical Infrastructure and Transport and other key government partners.

The Mitigation Action Facility (MAF) provides the essential financial backing for the project.

This ambitious program targets the deployment of approximately 3,500 Electric Micro and Minibuses (EMBs). Such a massive deployment will significantly transform Nepal’s public transportation network.

It actively contributes to a cleaner, greener, and more sustainable public transport system.

Integrating Digital Innovation

The collaboration between KBL and GIZ extends beyond mere financing. The SET4NPL project actively integrates sophisticated digital features.

These features are designed to make public transport services safer, smarter, and more convenient for both operators and passengers.

Key digital components being introduced include:

• Mobile Applications: These tools improve service access and management.
• GPS Devices: They enable real-time tracking, enhancing operational efficiency and safety.
• LED Route Displays: These features improve passenger information and convenience.
• Open-Loop E-Ticketing System: This streamlined digital payment solution simplifies fare collection and access.

Kumari Bank’s own robust digital infrastructure, powered by its Core Banking System, will support the efficient management of the special loan and subsidy programs.

This seamless digital integration ensures a transparent and quick financing process for operators seeking Electric Micro Minibus Financing Nepal.

Broader Impact on E-Mobility Ecosystem

The partnership creates a ripple effect across Nepal’s e-mobility ecosystem. By targeting the high upfront cost, the key obstacle to mass adoption is being removed.

Success here will demonstrate the commercial and operational viability of EMBs to other Public Transport Operators (PTOs).

This project not only facilitates vehicle purchase but also promotes a paradigm shift in urban and regional transport.

The long-term vision is to establish a financial mechanism that continues to drive electric mobility in Nepal well after the project concludes.

This ensures a lasting, positive change for the country’s transport sector and its environment. KBL is positioning itself at the forefront of this green technology adoption.

For more: Electric Micro Minibus Financing