Auto Loan

In today's fast-paced world, having a vehicle is essential for easy and secure travel. Auto loans simplify owning a car with low-interest rates, straightforward paperwork, and fast approval. No need for long-term planning or saving – just pick your ideal car, and banks will assist you in making it yours effortlessly View More

Search Products

Common features of Auto Loan

  • Quick loan processing with simplified documentation.
  • Flexible Repayment Schedule: Monthly (EMI) or quarterly (EQI) basis.
  • Fast approval process.
  • Affordable interest rates and charges
  • Facility available in all branches.
  • Flexible tenure
  • Counseling to help better financing by our Relationship Managers throughout the process.

Auto Loan Eligibility criteria 

  • The Age of applicant/co-applicant should be minimum 21 years at the time of loan origination and maximum 65 years at the time of maturity.
  • All individuals having a sufficient level of income to repay EMIs.
  • Salaried individual - Should be in permanent service.
  • Self Employed individual – Business should be at least 2 years in commercial operation.

Documents Required for Auto Loan


  • 2 Passport size photos of applicant
  • Photocopy of citizenship certificate/passport of Applicant & guarantor
  • Photocopy of Tax/PAN/VAT certificate along with registration certificate
  • Photocopy of Land ownership certificate if required
  • Residence/business visit report

Proof of Income

  • Salary Certificate
  • Photocopy of contract agreement between applicant and his/her employer
  • Photocopy of Rent Contract if any
  • Photocopy of audited Financial Statements in case Firm /Company’s income is considered
  • Self-declared of income
  • Others if any

Vehicle-Related Documents

  • Quotation of vehicles.
  • VAT bill of the vehicle.


  • Loan application form duly filled and signed in a standard format of the Bank.
  • Name of the family members.
  • Current account of the applicant/borrower.
  • In case of availed loan, loan statement from other banks and financial institutions.
  • Net worth declarations if required.
  • Multiple banking declarations.
  • Other documents stipulated by the Banks from time to time.

Auto Loan Common Fees & Charges

  • Processing Fees: This is a one-time fee charged by the lender for processing your home loan application. It covers the administrative costs of evaluating your application and conducting background checks.
  • Title and Registration Fees: These fees cover the cost of transferring the vehicle title and registering it with the appropriate authorities.
  • Prepayment Charges: If you decide to repay the loan before the end of its tenure, banks might charge a prepayment penalty. Some banks allow prepayment without charges, while others impose fees if the loan is prepaid within a specific period.
  • Late Payment Fees: If you miss an equated monthly installment (EMI) payment, the lender can impose a late payment fee.
  • Insurance Premiums: Banks often require borrowers to maintain comprehensive and collision insurance coverage on the financed vehicle. The cost of insurance is not a fee directly charged by the bank, but it's an additional cost you need to consider.

Common use of Auto Loan in Nepal 

  • To purchase Vehicles for private or commercial use.
  • To Purchase of used vehicles
  • Auto loans are also used to purchase vehicles for individual firms, partnership firms, or companies registered with the relevant agencies.

Auto Loan Do's and Don't Table



Do explore for the best loan: Compare interest rates, terms, and fees from different banks to find the most favorable deal.Do not focus solely on monthly payments: While it's essential to consider monthly payments, also pay attention to the overall cost of the loan, including interest rates and fees.
Do set a budget: Determine how much you can afford to borrow and the monthly payments you can comfortably make without straining your finances.Do not borrow more than you need: Stick to the amount necessary to purchase the car and avoid unnecessary add-ons that increase the loan amount.
Do consider all involved costs: Consider not only the purchase price but also taxes, fees, insurance, and potential maintenance costs when budgeting for a car.Do not forget about insurance costs: Insurance is a recurring expense. Factor in the cost of insurance when determining your overall budget.
Do gather all necessary documentation.Do not forget any documents while applying for a loan recheck before submitting.
Do understand the loan terms: Clearly understand the interest rate, loan term, monthly payments, and any associated fees before signing the loan agreement.Do not ignore the loan term: A longer loan term may lead to lower monthly payments but can result in higher overall interest costs. Strike a balance that fits your budget.