NRB 80% Vehicle Loan
28th September 2025, Kathmandu
In a significant move to support businesses recovering from recent unrest, the Nepal Rastra Bank (NRB) has directed banks to increase the loan-to-value (LTV) ratio for vehicle purchases.
NRB 80% Vehicle Loan
This special dispensation allows for an NRB 80% Vehicle Loan facility. The directive is specifically aimed at industries and business establishments that were directly affected by the Gen-Z movement on Bhadra 23 and 24.
This facility is a crucial step towards helping affected parties replace damaged transport assets and resume normal operations.
Who Qualifies for the 80% Vehicle Financing?
The central bank issued a circular on Friday instructing banks and financial institutions to immediately implement this revised financing structure. The key is the direct impact of the protests.
Affected Businesses and Industries
According to NRB, this beneficial facility is strictly limited to industries or business establishments directly affected by the movement. These businesses can now purchase new vehicles or replace damaged transport equipment with significantly lower upfront capital.
- Maximum Financing: Eligible businesses can receive up to 80% financing for their new vehicle purchases.
- Minimum Down Payment: This means the buyer is only required to make a 20% down payment.
- Purpose: The loan must be for the replacement of vehicles and transport equipment specifically damaged in the protests.
The central bank clearly stated: “In case of industries and business establishments directly affected by the Gen-Z movement, when providing loans for the replacement of vehicles and transport equipment damaged in the protests, the loan-to-value (LTV) ratio can be maintained up to 80%.” This provision is a powerful tool to accelerate the recovery process for enterprises that suffered losses.
Standard Vehicle Loan Rules Remain for Others
It is important to note that the existing vehicle financing rules remain unchanged for all other individuals and institutions not affected by the Gen-Z movement.
The Standard 60% LTV Ratio
For the general public and businesses that did not suffer damage during the specified protests, the loan-to-value ratio for purchasing new vehicles stays at the current 60% limit.
- Standard LTV: Licensed institutions must maintain the LTV ratio at a maximum of 60% for vehicle purchases for private use.
- Standard Down Payment: This standard rule requires the buyer to arrange a 40% down payment.
This standard applies to various vehicle categories, including all types of electric vehicles and personal vehicles intended for private use.
NRB confirmed this, stating, “Licensed institutions, when issuing loans for vehicle purchases, must maintain the loan-to-value ratio at a maximum of 60% for the vehicles mentioned below.”
Therefore, only a select group of demonstrably affected businesses benefits from the generous NRB 80% Vehicle Loan.
Impact and Implementation
The NRB’s decision is being widely seen as a proactive measure to stabilize the economy in sectors hit by the recent disturbances. By making it easier for businesses to acquire necessary transport assets, the central bank aims to minimize operational delays and economic fallout.
Banks and financial institutions (BFIs) are now responsible for setting up clear, efficient procedures to verify the claims of the affected industries.
Proper documentation proving the damage and the direct impact of the Gen-Z movement will be crucial for loan applicants to qualify for the special NRB 80% Vehicle Loan scheme.
The focus remains on providing targeted relief where it is most needed. This directive is a clear example of the central bank’s commitment to supporting economic resilience in the face of unexpected disruptions.
Businesses should promptly contact their respective banks to understand the specific application process and requirements to utilize this significant financial benefit.
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