Enter your home loan amount, interest rate, and tenure to calculate your monthly EMI, total interest, and total repayment. You can also include processing fees and a prepayment amount to estimate potential savings.
Home Loan EMI Formula
Nepal banks calculate home loan EMI using the same formula. The formula converts your loan amount, annual interest rate, and tenure into a fixed monthly payment.
| Variable | Meaning | Example Value |
|---|---|---|
| P | Principal loan amount | रू. 30,00,000 |
| r | Monthly interest rate (annual rate divided by 12 and 100) | 0.00833 (for 10% p.a.) |
| n | Total monthly installments | 240 (for 20 years) |
| EMI | Fixed monthly payment | रू. 28,950.65 |
The formula is EMI = P x r x (1+r)^n / ((1+r)^n - 1). Convert the annual rate to monthly by dividing by 12 and then by 100. For a 10% annual rate, the monthly rate is 10 / 12 / 100 = 0.00833. Convert tenure to months by multiplying years by 12. Twenty years becomes 240 months. The formula then calculates the fixed payment that pays off the loan over the full tenure.
Under the reducing balance method, you pay interest only on the outstanding loan balance each month. Early payments contain more interest. Later payments contain more principal. The total interest over the loan term depends on your rate and tenure.
Current Home Loan Interest Rates in Nepal (2026)
Home loan rates in Nepal follow the base rate system. Each bank sets a base rate quarterly. The actual loan rate is the base rate plus a premium of 1.5 to 4 percentage points. In 2026, the NRB policy rate sits at 4.25%, one of the lowest in recent years. This has pushed base rates down across commercial banks.
| Bank | Floating Rate Range | Fixed Option |
|---|---|---|
| Nepal Investment Mega Bank | 4.90% to 6.90% | - |
| Nabil Bank | 5.03% to 7.78% | 8.99% (7 years) |
| Nepal Bank Ltd. | 5.28% to 6.78% | 9.25% (5 years) |
| Standard Chartered | 6.27% to 8.27% | 6.99% (7 years) |
| NIC Asia (Saathi Ghar Karja) | 6.04% to 8.04% | 6.99% (7 years) |
| Global IME Bank | 5.83% to 7.83% | 8.99% to 10.99% (10 years) |
| NMB Bank | 5.77% to 8.08% | 9.99% (10 years) |
| Rastriya Banijya Bank | 6.48% to 6.98% | 9.25% (5 years) |
Rates change quarterly when banks update their base rates. Fixed options lock your rate for 5 to 10 years before converting to floating. Check with your bank for the latest rate before applying. The rates above reflect publicly available data as of mid-2026.
Home Loan LTV Ratio: How Much Loan Can You Get?
The loan-to-value ratio determines the maximum loan amount relative to the property value. Under the FY 2082/83 (2025/26) monetary policy issued by the Nepal Rastra Bank, the general LTV for residential housing loans was raised to 70%, up from 50%. This means a borrower other than a first-time home buyer can borrow up to 70% of the property's assessed value. First-time home buyers qualify for a higher ratio, covered below. Standalone land and real estate loans face a stricter 50% LTV cap.
First-time home buyers get a higher LTV of 80% under current NRB rules. This applies to loans up to रू. 3 crore for properties no larger than 3,000 square feet. You cannot have previously taken a housing loan from an institution. Rental income cannot count as a repayment source.
The maximum residential housing loan limit is रू. 3 crore. It was raised from Rs 2 crore and applies to both general and first-time borrowers. If the property costs रू. 4 crore, the bank finances up to रू. 3 crore under the general LTV, and you arrange the remaining amount yourself.
These rules apply to class A commercial banks. Development banks and finance companies may have different limits. Always confirm the LTV ratio with your lender before budgeting for a home purchase.
Home Loan Down Payment Requirements
Your down payment is the portion of the property price that comes from your own savings. The down payment equals 100% minus the LTV percentage. Under the general 70% LTV rule, you need a 30% down payment. For a रू. 1 crore property, that means रू. 30 lakh from your pocket.
First-time buyers with 80% LTV need only a 20% down payment. For the same रू. 1 crore property, the down payment drops to रू. 20 lakh. This lower threshold makes home ownership more accessible for first-time buyers in 2026.
Down payment amounts vary by property location and value. Banks assess the property through their approved valuers. The loan is based on the assessed value, not the market price or agreement value. If the assessed value is lower than the market price, your down payment effectively increases.
Plan your down payment before applying. Most banks require the funds to be in your account for at least three to six months. Source documentation, such as salary slips or tax returns, helps establish the legitimacy of your savings.
Fixed vs Floating Rate Home Loan
Nepal banks offer two rate types for home loans. Floating rates move with the bank's base rate. Fixed rates stay constant for a set period, then convert to floating.
Floating rate. Your rate changes when the bank updates its base rate. Base rates move with NRB policy rates and market conditions. When base rates fall, your EMI drops. When they rise, your EMI increases. Floating rates in 2026 range from 4.90% to 8.04% across major banks. The weighted average base rate of commercial banks was about 5.60% at the end of Ashwin 2082.
Fixed rate. Your rate locks for 5 to 10 years depending on the bank. After the fixed period ends, the loan converts to floating at the prevailing base rate plus the bank's spread. Standard Chartered and NIC Asia offer 6.99% fixed for 7 years. NMB offers 9.99% fixed for 10 years. No Nepal bank offers a true 20-year fixed rate.
Which option works better? When base rates sit at the bottom of the cycle and look likely to rise, fixed offers protection. Floating offers savings when rates are high and expected to fall. In 2026, base rates have fallen sharply over 18 months. The next move is likely upward. This tilts the choice toward fixed for new borrowers who can lock a rate for at least 7 years.
Home Loan EMI Example (30 Lakh, 20 Years)
A रू. 30,00,000 home loan at 10% annual rate for 20 years produces a monthly EMI of रू. 28,950.65. The total interest over the full tenure comes to रू. 39,48,155.84. The total repayment, principal plus interest, is रू. 69,48,155.84. Over 240 monthly payments, you pay more in interest than the original loan amount because of the long tenure.
| Year | EMI | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|---|
| 1 | रू. 3,47,408 | रू. 49,642 | रू. 2,97,766 | रू. 29,50,358 |
| 5 | रू. 3,47,408 | रू. 73,935 | रू. 2,73,473 | रू. 26,94,073 |
| 10 | रू. 3,47,408 | रू. 1,21,645 | रू. 2,25,762 | रू. 21,90,729 |
| 15 | रू. 3,47,408 | रू. 2,00,144 | रू. 1,47,263 | रू. 13,62,573 |
| 20 | रू. 3,47,408 | रू. 3,29,299 | रू. 18,108 | रू. 0 |
In year one, interest consumes रू. 2,97,766 of your रू. 3,47,408 annual EMI. Only रू. 49,642 goes to principal. By year 15, the split reverses. Principal reaches रू. 2,00,144 while interest drops to रू. 1,47,263. The reducing balance method ensures interest falls as you pay down the loan.
A longer tenure lowers your monthly EMI but increases total interest. A shorter tenure raises your EMI but reduces the total cost. Use the prepayment feature to see how extra monthly payments save both interest and time. Even रू. 5,000 extra per month on a 30 lakh loan cuts years off the tenure and lakhs off the interest.
Plan your full housing budget with related SajiloX tools. Compare loan types with the EMI Calculator and the Vehicle EMI Calculator. Convert property registration dates with the Nepali Date Converter. Check eligibility timelines with the Nepali Age Calculator. All tools are free.
Last verified: August 2026. Home loan rate data cross-checked against NRB base rate disclosures from class A commercial banks. LTV rules and loan limits verified against the FY 2082/83 (2025/26) monetary policy, its Unified Directive circular, and the Q1 policy review. (Circular No. 08/082/83, July 2025).