Electric buses have been talked about in Nepal for years as the obvious next step for public transport, but the financing math rarely worked for operators. That changed in July 2026, when Nepal Rastra Bank issued a specific rule easing loan-to-value limits for large electric vehicles used in public transport. This article explains exactly what the rule says, who it applies to, and what it does not cover.
What the Rule Actually Says
Nepal Rastra Bank has increased the maximum loan-to-value ratio for large electric passenger vehicles used in public transport to 80%, meaning banks can now finance up to 80% of the vehicle's value and the required down payment drops to 20%, compared with the 40% buyers previously had to pay when the limit was 60%. The provision was introduced through directives NRB issued to banks and financial institutions to implement the monetary policy for fiscal year 2083/84 (2026/27).
The same directive also allows banks to finance up to 80% for replacing commercial vehicles and transport equipment that were damaged during the Gen Z movement, provided the vehicles are used for business purposes. Financing rules for private vehicles were left unchanged. In other words, this is a targeted commercial-transport measure, not a general loosening of vehicle credit.
The move follows an earlier signal from the central bank. Governor Dr. Bishwo Nath Poudel announced while unveiling the monetary policy for FY 2026/27 that NRB would introduce a special provision to ease the LTV ratio for large electric public vehicles, without disclosing the exact figure at the time, and noted the policy would not extend to private vehicles. The 80% figure was confirmed shortly afterward through the implementing directive.
Who Actually Qualifies
The rule is written around vehicle type and use-case, not around who the borrower is. Based on the directive's language, three groups are positioned to benefit:
- Public transport operators and cooperatives buying large electric buses or coaches for scheduled passenger routes.
- Transport and logistics businesses whose commercial vehicles were damaged or destroyed during the Gen Z movement and need to replace them.
- Industries and business establishments replacing commercially operated transport vehicles damaged in the same period, even outside the passenger-transport sector.
A private individual buying a personal electric SUV, or a small business buying a single electric van for internal use rather than public carriage, does not fall under this 80% window. Those purchases remain governed by the standard 60% LTV cap that applies to private vehicles generally.
Public EV Financing vs Private EV Financing
| Feature | Large public-transport EV | Private passenger EV |
|---|---|---|
| Maximum LTV | 80% | 60% |
| Minimum down payment | ~20% | 40% |
| Typical borrower | Transport operator/cooperative, logistics business | Individual or household |
| Vehicle type | Electric bus or coach used for scheduled/commercial carriage | Electric car, SUV or hatchback for personal use |
| Policy objective | Accelerate clean public transport, support post-unrest fleet replacement | General consumer credit management, forex control |
Why NRB Is Pushing This Specifically for Public Transport
Vehicle-loan LTV has become a fairly blunt instrument for managing overall credit and foreign-exchange outflow, and the general 60% cap has held steady on the private side because of that. But large electric buses serve a different economic purpose: they replace diesel fleets that generate ongoing fuel-import costs and urban air pollution. A higher LTV, in this narrow case, is a subsidy-like tool rather than a loosening of general consumer credit — it lowers the upfront barrier for operators without reopening loose lending to individual car buyers.
Industry commentary has noted that the real-world benefit of this financing opening depends on more than the loan rule itself — reliable charging infrastructure, commercially viable routes, and disciplined lending practices by banks all determine how much of the intended transition actually happens. In practical terms, an operator getting an 80% loan on an electric bus still needs a route that generates enough fare revenue to service that loan, and enough charging infrastructure along that route to keep the bus running.
What Operators Should Prepare Before Applying
- Route and revenue documentation. Banks assess repayment capacity from projected fare revenue, so a cooperative or operator should have route permits and ridership estimates ready.
- Business registration and financial statements. As with any commercial vehicle loan, expect requirements for company registration, audited financials or bank statements, and PAN registration.
- Confirmation that the specific vehicle qualifies. Ask the bank directly whether the bus model and seating configuration you are financing falls under the "large passenger EV" definition used in the directive, since eligibility is vehicle-specific.
- A charging and maintenance plan. While not a loan condition on paper, banks increasingly factor in whether an operator has secured charging access before approving large commercial EV loans.
Frequently Asked Questions
What is NRB's new EV loan rule for public vehicles?
Nepal Rastra Bank raised the loan-to-value ceiling for large electric passenger vehicles used in public transport to 80%, down payment requirements for eligible operators fall to around 20%, compared with 40% previously. The rule took effect through directives implementing the FY 2026/27 monetary policy.
Does this rule apply to a personal electric car?
No. The 80% LTV applies specifically to large electric vehicles used in public transport, and to certain protest-damaged commercial vehicle replacements. Private, personal-use EVs remain subject to the standard 60% LTV limit.
Which banks offer financing under this rule?
The directive applies to banks and financial institutions generally rather than naming specific lenders. In practice, availability and exact terms vary by bank, so transport operators should confirm with individual banks whether they have activated a public-EV financing product under the new ceiling.
Is this the same as the 80% rule for "large passenger EVs" mentioned elsewhere?
They stem from the same monetary policy provision and use very similar language, and both center on large passenger electric vehicles. Practically, they describe the same easing: an 80% LTV window for big electric vehicles used for passenger or commercial transport, separate from the general 60% cap on private vehicles.
Could the down payment requirement change again?
Vehicle-loan LTV rules in Nepal have changed multiple times in the past year, and the central bank continues to receive pressure from industry groups to adjust further. Operators should confirm the current rule with their bank at the time of application rather than relying on a figure from an earlier month.
Related reading: See how this fits into the wider picture in Auto Loan LTV Rules in Nepal 2026: What Changed and Why, or read about how NMB Bank's used EV loan product works.
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