Vehicle Loan EMI Calculator
Work out the monthly instalment for a car or bike loan in Nepal — instantly.
Loan amountRs 20,00,000
Interest rate12% p.a.
Tenure5 years
Monthly EMI
Rs 44,489
Principal Interest
Principal amountRs 20,00,000
Total interestRs 6,69,334
Total payableRs 26,69,334
Indicative only. Actual EMI depends on the bank's rate, processing fees and terms.
How the EMI is calculated
EMI (Equated Monthly Instalment) is the fixed amount you repay each month until the loan is cleared. It is calculated from three things: the loan amount, the annual interest rate, and the tenure. The formula is EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months.
Tips for a vehicle loan in Nepal
- A larger down payment lowers the loan amount and your monthly EMI.
- A shorter tenure means a higher EMI but far less total interest.
- Compare rates across banks — even 1% makes a real difference over 5–7 years.
- Factor in insurance, registration and processing fees on top of the loan.
Frequently asked questions
What is EMI on a vehicle loan?
EMI (Equated Monthly Instalment) is the fixed amount you repay every month — covering both principal and interest — until the loan is fully cleared. The calculator above works it out from your loan amount, interest rate and tenure.
How much down payment do banks in Nepal require for a vehicle loan?
Most banks finance roughly 50–80% of the vehicle value depending on the vehicle type and their policy, so you pay the rest upfront. Electric vehicles often qualify for higher financing. Confirm the exact limit with your bank.
How does the loan tenure affect my EMI?
A longer tenure lowers the monthly EMI but increases the total interest you pay over the life of the loan. A shorter tenure raises the EMI but costs you much less overall.
Are vehicle loan interest rates fixed or variable in Nepal?
Banks offer both. Many auto loans use a variable rate (a base rate plus a premium) that can change over time, so ask whether your rate is fixed for the full tenure before signing.
Can I prepay or foreclose my vehicle loan early?
Usually yes, often with a small prepayment or foreclosure charge. Paying early reduces the total interest you pay — check the exact terms in your loan agreement.
What extra costs come with a vehicle loan besides the EMI?
Budget for loan processing fees, insurance, registration and road tax, and service charges — these are on top of your monthly EMI.