Enter your loan amount, interest rate, and tenure to calculate your personal loan EMI. This calculator uses the reducing balance method that Nepal banks commonly use for personal loans. Results show your monthly payment, total interest, total principal, and total repayment amount. Turn on the Eligibility Booster to check your Debt-to-Income ratio and see if you qualify.
Personal Loan EMI Formula
Nepal banks calculate personal loan EMI using the same standard 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. 5,00,000 |
| r | Monthly interest rate (annual rate divided by 12 and 100) | 0.01 (for 12% p.a.) |
| n | Total monthly installments | 36 (for 3 years) |
| EMI | Fixed monthly payment | रू. 16,607 |
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 12% annual rate, the monthly rate is 12 / 12 / 100 = 0.01. Convert tenure to months by multiplying years by 12. Three years becomes 36 months. The formula then calculates the fixed payment that pays off the loan over the full tenure.
Under the reducing balance method, interest is charged only on the outstanding balance each month. Early payments contain more interest. Later payments contain more principal. This method gives lower total interest compared to a flat rate.
Current Personal Loan Interest Rates in Nepal (2026)
Personal loan rates follow the base rate system. Banks set a base rate quarterly. The actual loan rate is the base rate plus a risk premium. In mid-2026, premiums run from 2.75 to 4.75 percentage points above the base rate. Personal loans cost more than home loans because they lack collateral. With the NRB policy rate at 4.25%, personal loan rates have dropped to their lowest levels in years.
| Bank | Published Rate Range | Personal Term Loan |
|---|---|---|
| Standard Chartered | 7.71% to 8.71% | BR + 3.50% to 4.50% |
| Nabil Bank | 8.03% to 9.03% | BR + 3.50% to 4.50% |
| Everest Bank | 7.88% to 8.88% | BR + 3.50% to 4.50% |
| Nepal Bank Ltd. | 8.18% to 9.18% | BR + 3.50% to 4.50% |
| Nepal Investment Mega Bank | 9.11% to 10.11% | BR + 3.50% to 4.50% |
| NMB Bank | 8.77% to 9.77% | BR + 3.50% to 4.50% |
| NIC Asia Bank | 9.54% to 10.54% | BR + 3.50% to 4.50% |
| Global IME Bank | 8.33% to 9.33% | BR + 3.50% to 4.50% |
| Saptakoshi Dev. Bank | from 9.35% | BR + up to 3.00% |
Rates change monthly when banks update their base rates. The published premium structure is consistent across schemes: professional loans carry BR + 2.75% to 4.00%, personal term loans BR + 3.50% to 4.50%, and personal overdrafts BR + 3.75% to 4.75%. The effective rate depends on your credit profile, employer category, and relationship with the bank. Existing customers with clean repayment records often negotiate lower premiums. Check with your bank for the latest rate before applying.
Personal Loan Eligibility: How Much Can You Borrow?
Nepal banks assess personal loan eligibility using the Debt-to-Income ratio. Your total monthly obligations, including the new loan EMI and any existing EMIs, cannot exceed a certain percentage of your net monthly income. The Eligibility Booster in this calculator checks your DTI automatically.
| DTI Ratio | Eligibility Status | Likely Outcome |
|---|---|---|
| Below 40% | Excellent | High chance of approval |
| 40% to 50% | Good | May be approved, borderline |
| Above 50% | High Risk | Likely rejection |
Banks also check your employment stability. Most require at least one to two years of continuous service at your current employer. Employees at category A companies, government offices, and multinational firms get faster approvals. Self-employed applicants need audited financial statements and tax returns.
Your age matters too. Minimum age at application is usually 21 to 23. Maximum age at loan maturity is typically 58 to 60 for salaried borrowers. NIC Asia sets 23 as the minimum and 58 as the maximum at maturity. Pensioners can sometimes borrow up to age 68 when the loan is secured against pension income.
Use the Eligibility Booster in the calculator to test different loan amounts against your income. Enter your monthly income and existing EMIs to see your DTI ratio instantly.
Salary Requirement by Bank
Minimum salary requirements vary across banks, but most commercial banks set a floor of रू. 15,000 to रू. 25,000 net monthly income for personal loan applicants. Loan size follows a multiple of your salary plus an absolute ceiling. The table below shows verified caps from leading banks.
| Bank | Maximum Unsecured Amount | Loan Multiple / Tenure |
|---|---|---|
| NIC Asia Bank | रू. 15 lakh | Term loan up to 7 years |
| Standard Chartered | रू. 15 lakh | Tenure up to 5 years |
| Everest Bank | रू. 15 lakh | Up to 25x net monthly income |
| Garima Bikas Bank | रू. 50 lakh | Personal term loan, 10 years |
| Nepal Bank Ltd. | रू. 50 lakh | Secured term loan, up to 20 years |
Higher salary earners qualify for larger loan amounts and better rates. A person earning रू. 80,000 per month can typically borrow रू. 10 to 15 lakh depending on the bank and their CIB record. Banks also apply the debt-to-income ratio. Even with a high salary, existing EMIs reduce your borrowing capacity.
CIB Score and Its Impact on Personal Loan
The Credit Information Bureau of Nepal maintains credit reports for borrowers in the banking system. Banks check your CIB report before approving a personal loan. A clean report with on-time payments increases your approval chances significantly.
CIB reports track your total outstanding loans, payment history, delays, and settled accounts. While Nepal does not use a single credit score like FICO, CIB assigns a credit score that runs from 60 to 960, per the Credit Information Bureau of Nepal. Most banks prefer a score of 650 or above, and a score above 750 is considered excellent. Banks classify borrowers into risk categories based on this CIB data. A borrower with no delays across all facilities is considered low risk. A borrower with late payments, defaulted loans, or a blacklisted name faces rejection.
Most banks in Nepal prefer borrowers who maintain a clean record for at least 12 to 24 months before applying. Even a single late payment on a credit card or loan can show up on your report. Check your CIB report before applying so you know what banks will see. You can request your report through any member bank.
If your CIB report shows issues, focus on clearing outstanding amounts and building a clean payment history before reapplying. Some banks offer loans to borrowers with minor CIB issues at higher interest rates or reduced loan amounts.
Personal Loan EMI Example (5 Lakh, 3 Years)
A रू. 5,00,000 personal loan at 12% annual rate for 3 years produces a monthly EMI of रू. 16,607. The total interest over the tenure comes to रू. 97,858. The total repayment is रू. 5,97,858. Over 36 payments, you pay roughly 20% of the loan amount in interest.
| Year | EMI (Annual) | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|---|
| 1 | रू. 1,99,286 | रू. 1,47,208 | रू. 52,078 | रू. 3,52,792 |
| 2 | रू. 1,99,286 | रू. 1,65,877 | रू. 33,408 | रू. 1,86,915 |
| 3 | रू. 1,99,286 | रू. 1,86,915 | रू. 12,371 | रू. 0 |
In year one, interest consumes रू. 52,078 while only रू. 1,47,208 goes to principal. By year three, the split reverses. Principal reaches रू. 1,86,915 while interest drops to रू. 12,371. 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 5-year tenure on the same रू. 5,00,000 loan at 12% gives an EMI of रू. 11,122 but total interest of रू. 1,67,333. The EMI drops by रू. 5,485 per month, but you pay रू. 69,475 more in interest. Choose the shortest tenure you can afford to minimize borrowing costs.
Plan your full borrowing strategy with related SajiloX tools. Check your home loan EMI with the Home Loan EMI Calculator. Estimate a general loan with the EMI Calculator. Convert loan dates between BS and AD with the Nepali Date Converter and check loan age limits with the Nepali Age Calculator. All tools are free.
Last verified: August 2026. Personal loan rates cross-checked against published rate schedules for Shrawan 2083 from commercial banks and development banks. Policy rate at 4.25% per NRB's FY 2082/83 (2025/26) monetary policy and its quarterly reviews. CIB score guidance based on Nepal Rastra Bank credit information regulations.