Enter the vehicle price, down payment, and trade-in value to calculate your vehicle loan EMI. This calculator works for cars, bikes, and EV loans using the reducing balance method. Results show your monthly EMI, loan amount, total interest, and total payment. Enter a trade-in value to reduce your loan amount further. The calculation runs on our server after you click Calculate.
Vehicle Loan EMI Formula
Nepal banks calculate vehicle loan EMI using the reducing balance formula. The formula converts your net loan amount, annual interest rate, and tenure into a fixed monthly payment. The net loan amount is the vehicle price minus your down payment and trade-in value.
| Variable | Meaning | Example Value |
|---|---|---|
| P | Net loan amount (price minus down payment and trade-in) | रू. 15,00,000 |
| r | Monthly interest rate (annual rate divided by 12 and 100) | 0.0075 (for 9% p.a.) |
| n | Total monthly installments | 60 (for 5 years) |
| EMI | Fixed monthly payment | रू. 31,137.53 |
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 9% annual rate, the monthly rate is 9 / 12 / 100 = 0.0075. Convert tenure to months by multiplying years by 12. Five years becomes 60 months. The formula then calculates the fixed payment that pays off the loan over the full tenure.
Vehicle loans use the same reducing balance method as home and personal loans. You pay interest only on the outstanding balance each month. Your down payment directly reduces the loan principal. A larger down payment lowers both your EMI and total interest.
Current Vehicle Loan Interest Rates (2026)
Vehicle loan rates in Nepal have dropped to multi-year lows in 2026. The average lending rate is about 6.7% as of mid-2026, down from 15 to 16% four to five years ago. Nine of 20 commercial banks now have base rates below 5%. Auto loans start from around 5.5% for eligible borrowers. Bike loans cost more due to higher risk and shorter tenures.
| Vehicle Type | Rate Range | Notes |
|---|---|---|
| Fuel car (floating) | 5.5% to 8.7% | Base rate plus 0.50% to 2.50% premium |
| Fuel car (fixed) | 6.5% to 9.0% | Locked rate for 5 to 7 years |
| EV (floating) | 5.5% to 8.7% | Similar to fuel cars, some banks offer EV promo rates |
| EV (fixed) | 6.5% to 9.0% | Some banks offer EV-specific fixed schemes |
| Bike (floating) | 12.00% to 16.00% | Shorter tenure, higher risk profile |
Rates vary by bank. Nabil Bank quotes auto loans starting at 5.91%, with its average base rate around 4.53% as of Ashadh 2083. NIC Asia Bank, with the highest base rate among commercial banks at 6.04% as of Jestha 2083, adds a 0.25% to 2.25% risk premium on private vehicle loans, putting its floating range around 6.29% to 8.29%. Nepal Bank offers auto loans from base rate plus 0.50%. Global IME offers promotional auto loan schemes below 6%. Some banks have introduced special low rates for electric vehicles to support the government's EV push. Check with your bank for the current rate before applying.
Down Payment Comparison: Fuel vs EV vs Bike
Your down payment depends on the vehicle type you choose. The calculator accepts any down payment amount, so you can test different scenarios. Here is how the requirements compare under current NRB rules.
| Vehicle Type | Minimum Down Payment | Maximum Financing | Loan Tenure |
|---|---|---|---|
| Fuel car | 40% of vehicle price | 60% LTV | Up to 7 years |
| Private EV | 40% of vehicle price | 60% LTV | Up to 7 to 10 years |
| Public transport EV (large) | 20% of vehicle price | 80% LTV | Up to 7 to 10 years |
| Bike | 30% of vehicle price | 70% LTV (bank dependent) | Up to 2 to 3 years |
| Commercial vehicle | 40% of vehicle price | 60% LTV | Up to 5 to 7 years |
For a रू. 40 lakh private car, you need रू. 16 lakh as down payment. This applies to both fuel cars and private EVs, because both are capped at 60% LTV. The 80% LTV rule with 20% down payment applies only to large passenger EVs registered for public transport, not to private EV buyers. Bikes require roughly 30% down payment and have shorter tenures.
The calculator also accepts a trade-in value. If you are exchanging an old vehicle, the trade-in amount reduces your net loan amount just like a down payment. A रू. 2 lakh trade-in on a रू. 25 lakh car with a रू. 10 lakh down payment gives a net loan of रू. 13 lakh.
NRB Vehicle Loan LTV Rules
Nepal Rastra Bank sets the loan-to-value limits for vehicle loans. These rules change based on monetary policy reviews. As of July 2026, the following LTV rules apply.
| Policy Date | Fuel Vehicle LTV | Private EV LTV | Public Transport Large EV LTV | Bike LTV |
|---|---|---|---|---|
| Before Feb 2025 | 50% | 80% | 80% | Bank dependent |
| Feb 2025 to July 2026 | 60% | 60% | 60% | Bank dependent |
| July 16, 2026 onward | 60% | 60% | 80% | Bank dependent |
NRB's monetary policy for FY 2026/27, announced July 16, 2026, restored the 80% LTV for large passenger electric vehicles. The 80% LTV applies only to large passenger EVs used for public transport and to vehicles replacing commercial vehicles damaged during the Gen Z movement protests. Private EV buyers still face the 60% LTV cap, the same as fuel vehicle buyers. A private EV requires a 40% down payment, not 20%. You can read the official announcement of the 80% passenger EV LTV for the full policy details.
These rules apply to class A commercial banks. Some development banks and finance companies follow different limits. Confirm the current LTV with your lender before signing any agreement. NRB reviews these rules during each monetary policy review, typically twice a year.
Popular Vehicle EMIs in Nepal (BYD Atto 3, Royal Enfield, Tata Nexon)
These examples show real monthly payments for popular vehicles in Nepal. Use the calculator to adjust the numbers based on your specific deal.
| Vehicle | Price | Down Payment | Rate | Tenure | Monthly EMI |
|---|---|---|---|---|---|
| BYD Atto 3 (private EV) | रू. 56,90,000 | रू. 22,76,000 (40%) | 8% | 7 years | रू. 53,211.34 |
| Tata Nexon EV (private EV) | रू. 27,40,000 | रू. 10,96,000 (40%) | 8% | 7 years | रू. 25,623.74 |
| Hyundai Creta (fuel) | रू. 45,00,000 | रू. 18,00,000 (40%) | 9% | 5 years | रू. 56,047.56 |
| Suzuki Swift (fuel) | रू. 42,00,000 | रू. 16,80,000 (40%) | 9% | 5 years | रू. 52,311.06 |
| Royal Enfield Himalayan 450 | रू. 9,50,000 | रू. 2,85,000 (30%) | 13% | 3 years | रू. 22,406.48 |
| Pulsar NS 200 | रू. 5,50,000 | रू. 1,65,000 (30%) | 13% | 3 years | रू. 12,972.17 |
Private EVs share the same 40% down payment rule as fuel cars, so the monthly payments differ mainly through rate and tenure. A BYD Atto 3 at रू. 53,211 EMI over 7 years costs less to run than a comparable fuel SUV at रू. 56,048 EMI because electricity costs रू. 2 per km versus रू. 15 per km for petrol. Over 1,000 km per month, the EV saves रू. 13,000 in fuel. This saving effectively covers a large portion of the higher EMI.
Vehicle Loan Tenure Options
Tenure determines your monthly EMI and total interest. Longer tenure lowers the monthly payment but increases total interest. Shorter tenure does the opposite.
Cars and EVs. Most banks offer up to 7 years for car loans. Nepal Investment Mega Bank offers up to 10 years for EV loans. A 5-year tenure gives a higher EMI but saves on interest. A 7-year tenure reduces the monthly burden but adds interest cost. For a रू. 20 lakh loan at 9%, the 5-year EMI is रू. 41,516.71 with total interest of रू. 4,91,002.63. The 7-year EMI drops to रू. 32,178.16 but total interest rises to रू. 7,02,965.15.
Bikes. Bike loan tenures run 2 to 3 years. The shorter tenure reflects the lower loan amount and higher risk. A रू. 5 lakh bike loan at 13% over 3 years gives an EMI of रू. 16,846.98. Over 2 years, the EMI rises to रू. 23,770.91 but saves roughly रू. 36,000 in interest.
Commercial vehicles. Tenures range from 5 to 7 years depending on the vehicle type and bank policy. Commercial vehicle loans often carry higher premiums than private vehicle loans.
Choose the shortest tenure you can afford. A larger down payment lets you keep the loan small and the tenure short. Use the calculator to compare different tenure options before you visit the bank.
Budget your full vehicle purchase with related SajiloX tools. Compare financing options with the Home Loan EMI Calculator. Check loan eligibility with the Personal Loan EMI Calculator. Plan registration timelines with the Nepali Date Converter. Check your driver eligibility with the Nepali Age Calculator. All tools are free to use.
Last verified: August 2026. Vehicle loan rate data cross-checked against NRB monetary policy directives and published base rate disclosures from class A commercial banks. EV LTV rules verified against NRB Circular implementing FY 2026/27 monetary policy (July 16, 2026). Vehicle prices sourced from authorized Nepal dealership listings.