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Government Plans Interest-Free Vehicle Loans of Up to Rs. 6 Million for Civil Servants

The government has proposed providing interest-free vehicle loans of up to Rs. 6 million to civil servants, with repayment periods extending up to 20 years.

Nepalytix
5 min read
Government Plans Interest-Free Vehicle Loans of Up to Rs. 6 Million for Civil Servants

The Office of the Prime Minister and Council of Ministers has drafted the Government Employees Vehicle Management Directive, 2083, proposing an interest-free vehicle loan scheme for government employees. The proposal, currently awaiting approval from the Ministry of Finance, would allow eligible employees—from the Chief Secretary to assistant-level staff—to obtain concessional loans for purchasing personal vehicles.

Under the proposed framework, employees would receive loans covering up to 80% of a vehicle's cost after making a 20% down payment. Loan limits range from Rs. 6 million for senior officials to Rs. 200,000 for assistant-level employees, with repayment periods of up to 20 years. The loans would be provided through institutions such as the Employees Provident Fund, Citizen Investment Trust, Social Security Fund, and designated banks. The government also plans to encourage the purchase of electric vehicles (EVs) and domestically assembled or manufactured vehicles through additional incentives.

Nepalytix

Financial News Reporter