Which Bank Offers the Cheapest Auto Loan in Nepal? HP Loan Rates and Volumes Compared
Amid falling interest rates and abundant liquidity, commercial banks in Nepal are aggressively expanding hire purchase (HP) auto loans. Here’s a comparison of lending rates and volumes to help you pick the cheapest car loan.
As the Naima Nepal Mobility Expo 2025 kicks off, commercial banks in Nepal have ramped up promotions of hire purchase (HP) loans for automobile buyers. With liquidity surplus and average base rates down to around 6%, car loans are now available at single-digit interest rates.
Banks are offering HP loans with premiums ranging from 0.25% to 5% over their base rate. According to data as of mid-Jestha 2082, commercial banks have disbursed a total of Rs. 115.07 billion in hire purchase loans — up 6% YoY.
Here’s a breakdown of top HP loan providers and their average premium rates:
Bank | HP Loan Volume (Rs. Billion) | Premium Over Base Rate |
|---|---|---|
Global IME Bank | 15.68 | 1.5% – 3.5% |
Nabil Bank | 11.26 | 2% – 4% |
Rastriya Banijya Bank | 9.27 | Moderate |
Agriculture Development Bank | 4.42 | Moderate |
Nepal Bank Ltd | 2.55 | Moderate |
Everest Bank | 7.06 | Surge from Rs. 3.48B LY |
Sanima Bank | 5.78 | Increased YoY |
NMB Bank | 6.72 | Increased YoY |
Himalayan Bank | 6.62 | Slightly Lower |
Prime Commercial Bank | 5.97 | Stable |
Prabhu Bank | 5.72 | Slight decrease |
Nepal Investment Mega Bank | 5.14 | Lower |
Banks with < Rs. 5B in HP Loans:
Kumari Bank, Citizens Bank, Siddhartha Bank, Machhapuchhre Bank, Laxmi Sunrise, NIC Asia, Standard Chartered — with Standard Chartered Bank having the lowest HP loan volume.
Banks that Increased HP Loans Significantly (YoY):
Everest Bank (Rs. 3.48B → Rs. 7.06B)
Rastriya Banijya Bank
Nepal SBI
ADBL
Sanima
NMB
Global IME
Nepal Bank
Nabil Bank
Prime Bank
Banks that Reduced HP Loans:
NIC Asia, Standard Chartered, Kumari, Laxmi Sunrise, Machhapuchhre, Himalayan, Siddhartha, Prabhu, NIMB, Citizens Bank.