20th August 2025, Kathmandu
The NADA Auto Show 2025 has become more than just a showcase for new vehicles; it’s a battleground for commercial banks vying to offer the most attractive auto loan schemes.
NADA Auto Loan Nepal
With the auto show drawing large crowds and the festive season of Dashain and Tihar on the horizon, financial institutions are leveraging the opportunity to expand their business by offering unprecedentedly low interest rates and flexible loan products.
The current economic climate in Nepal has created a perfect storm for this competitive environment. A period of economic slowdown has resulted in excess liquidity within the banking system, meaning banks have surplus funds that are not being utilized for business expansion.
This has led to a significant drop in interest rates across the board. Simultaneously, the NADA Auto Show has seen a surge in customer footfall and vehicle bookings, indicating a strong consumer appetite for new cars. To bridge the gap between their available funds and the rising demand for vehicles, banks are turning to auto loans as a key business driver.
A remarkable number of banks, including eight major commercial banks, are participating directly in the auto show, presenting their tailored loan schemes to potential car buyers.
These offers are not only competitive but also diverse, with interest rates ranging from a minimum of 6.23% to a maximum of 8.25%. This wide range provides consumers with a variety of choices, allowing them to select a loan that best fits their financial profile.
According to regulations set by Nepal Rastra Bank, the central bank of Nepal, financial institutions can provide financing for up to 60% of the cost of a new vehicle. This regulation provides a standard framework, but the banks are differentiating themselves through attractive interest rates, flexible tenures, and minimal processing fees.
Here’s a breakdown of the competitive auto loan offers from various banks at the NADA Auto Show 2025:
- Agricultural Development Bank: Standing out with the most affordable option, the bank is offering auto loans at a minimum interest rate of 6.23%, calculated as its base rate of 5.87% plus a 0.36% premium. A service charge of 0.75% makes it an extremely attractive proposition for budget-conscious buyers.
- Nabil Bank: Nabil Bank is providing a flexible loan starting at 6.74% for a tenure of up to 7 years, with a service fee of 0.5%. For customers who prefer stability, they also offer a fixed annual rate of 8.25% for 7 years, accompanied by a very low service charge of just 0.25%.
- Global IME Bank: This bank is offering an auto loan at a floating rate of 6.99%. Additionally, it has a fixed-rate scheme of 8.25% for a 5-year term, catering to customers who want to lock in their interest rate and avoid future rate fluctuations.
- Himalayan Bank: Himalayan Bank’s auto loan is available at 7.57% (base rate + 0.87% premium), with a loan repayment period that can extend up to 8 years. This longer tenure offers lower monthly installment options, making it more accessible for many buyers.
- NMB Bank: With a forward-thinking approach, NMB Bank has introduced a special scheme for electric vehicles (EVs) at a competitive rate of 7.13%. For other vehicles, a fixed interest rate of 8.89% is available for a 5-year period.
- Sanima Bank: Sanima Bank is also focusing on the growing EV market with a fixed interest rate of 7.49% for electric vehicles. For traditional vehicles, the rates are 7.99% for a 5-year loan and 8.15% for a 7-year loan. The bank emphasizes a fast-tracked process with loan approval within 3 days and a processing fee of only 0.5%.
- Nepal SBI Bank: Nepal SBI Bank is offering auto loans starting at 6.99%, with loan tenures ranging from 3 to 7 years. The bank highlights its minimal processing charges as a key benefit for customers.
- Laxmi Sunrise Bank: Laxmi Sunrise Bank is providing a fixed-rate auto loan at 7.99% for a period of up to 7 years. This offer provides certainty and peace of mind for borrowers throughout their repayment journey.
As the Nepali economy seeks to regain momentum, banks are actively looking for avenues to deploy their capital. Vehicle financing, a lucrative and relatively low-risk segment, has become a primary target. For consumers, this translates into a golden opportunity to secure a new vehicle with favorable financing terms, making their dream car more affordable than ever.
For more: NADA Auto Loan Nepal