If you compare personal loan interest rates in Nepal across all major banks, the gap between the cheapest and the most expensive lender is often more than 10 percentage points on paper — and that gap can quietly cost you well over a lakh in extra interest on an ordinary five-year loan. This guide lays out exactly what every commercial bank in Nepal is charging right now, how that number is actually built, and how to read the fine print so the rate you are quoted is the rate you actually pay.
Quick Answer
As of Shrawan 2083 (July 2026), Nabil Bank offers the lowest advertised personal loan rate in Nepal at 4.58% p.a. for salaried/corporate borrowers, against a 19-bank market average of 8.44% p.a. and a high of 15.00% p.a. at three banks running fixed-rate digital "smart loan" products. Most personal loans in Nepal are floating: your rate resets whenever the bank's monthly base rate moves, so the number you see today is not locked in for the life of the loan unless the product is explicitly labelled "fixed."
Personal Loan Interest Rates in Nepal — Full Bank Comparison (2026)
The table below lists the starting effective interest rate for each commercial bank's flagship personal loan product, ranked from cheapest to most expensive. "Effective rate" means the bank's published base rate plus its fixed premium for this product — the number that actually appears on your loan agreement, not just the premium.
| Rank | Bank | Rate (from) | Type | How it's priced |
|---|---|---|---|---|
| 1 | Nabil Bank | 4.58% | Floating | 4.58% base + 0.00% |
| 2 | Prime Commercial Bank | 5.30% | Floating | 5.30% base + 0.00% |
| 3 | Rastriya Banijya Bank | 5.72% | Floating | 4.22% base + 1.50% |
| 4 | Laxmi Sunrise Bank | 6.16% | Floating | 5.16% base + 1.00% |
| 5 | Nepal Investment Mega Bank | 6.30% | Floating | 4.80% base + 1.50% |
| 6 | Global IME Bank | 6.39% | Floating | 4.89% base + 1.50% |
| 7 | Nepal Bank Limited | 6.59% | Floating | 4.59% base + 2.00% |
| 8 | Kumari Bank | 6.77% | Floating | 5.27% base + 1.50% |
| 9 | Himalayan Bank | 7.00% | Fixed | Fixed, up to 7 years |
| 10 | NMB Bank | 7.12% | Floating | 5.12% base + 2.00% |
| 11 | NIC Asia Bank | 7.99% | Fixed | Fixed, real-estate collateral |
| 12 | Standard Chartered Bank | 8.23% | Floating | 4.23% base + 4.00% |
| 13 | Siddhartha Bank | 8.28% | Floating | 5.03% base + 3.25% |
| 14 | Everest Bank | 9.00% | Fixed | Fixed, Flexi Loan |
| 15 | Nepal SBI Bank | 9.99% | Fixed | Fixed, consumer loan |
| 16 | Citizens Bank International | 10.00% | Fixed | Fixed, fast-track loan |
| 17 | Agricultural Development Bank | 15.00% | Fixed | Fixed, digital Fone Loan |
| 18 | Sanima Bank | 15.00% | Fixed | Fixed, unsecured Smart Loan |
| 19 | Machhapuchchhre Bank | 15.00% | Fixed | Fixed, Smart Loan Track |
Figures compiled from each bank's published rate disclosures for Shrawan 2083, cross-checked against Nepal Rastra Bank base-rate corridor data via BFIS Compare. Rates are revised almost every Nepali month — treat this table as a starting reference and confirm the live number before you apply.
How a Personal Loan Rate Is Actually Built in Nepal
Nepali banks do not simply pick a number. Almost every floating-rate personal loan is priced as the bank's own base rate, published monthly and driven largely by Nepal Rastra Bank's policy stance and each bank's cost of deposits, plus a fixed premium that reflects your risk category, income type, and whether the loan is secured. Once your loan is sanctioned, Nepal Rastra Bank rules mean the bank can only adjust the base-rate portion — it cannot quietly raise your premium later. That is the single most useful thing to understand before you compare two "similar" offers.
This structure explains why two banks with the same headline rate can behave very differently over time. A bank with a low base rate and a high premium is more stable when NRB rates move; a bank with a high base rate and a low premium moves further, in both directions, as monetary policy shifts. If you plan to hold the loan for several years and expect rates to keep falling, a floating loan with a larger base-rate share works in your favour. If you want certainty, a fixed-rate product removes that variable entirely, usually at a slightly higher starting cost.
Where Every Bank Ranks, at a Glance
What the Rate Gap Actually Costs You
A percentage-point gap looks small until it is applied to a real loan amount over several years. Here is what a Rs 5,00,000 personal loan over 5 years looks like at three different points on the rate table.
| Scenario | Rate | Monthly EMI | Total interest |
|---|---|---|---|
| Cheapest tier (Nabil) | 4.58% | ~Rs 9,340 | ~Rs 60,383 |
| Market average | 8.44% | ~Rs 10,244 | ~Rs 1,14,629 |
| Most expensive tier | 15.00% | ~Rs 11,895 | ~Rs 2,13,700 |
Moving from the market average to the cheapest available rate saves roughly Rs 900 a month and around Rs 54,000 in total interest on this example loan — without changing anything else about your borrowing. That is the entire reason a bank-by-bank comparison is worth doing before you sign, rather than accepting the first offer from a bank you already have an account with.
A note on TDS
Interest you pay on a personal loan is a cost, not income, so no TDS applies to it. The 5–6% TDS you may have seen mentioned elsewhere applies to interest banks pay you on savings and fixed deposits — it has no bearing on your loan repayments.
Personal Loan EMI Calculator
Use your own loan amount, rate, and tenure to see the real monthly payment and total interest before you commit to an offer.
EMI Calculator
What Actually Decides the Rate a Bank Offers You
The rate on this page is a starting point, not a guarantee. Two applicants at the same bank can be quoted rates a full percentage point or more apart. Banks in Nepal generally weigh these factors when pricing your personal loan:
- Income type and stabilitySalaried employees at established companies, especially with a salary account at the lending bank, are usually offered the lowest end of the range. Self-employed and commission-based income typically sit higher on the premium.
- Existing relationship with the bankAn existing salary account, fixed deposit, or clean repayment history on a prior loan gives the bank confidence to price you closer to the floor of their range.
- Collateral versus unsecuredLoans backed by fixed deposits, gold, or property typically price lower than fully unsecured "instant" or digital personal loans, which is a major reason app-based products often sit near the top of the rate table.
- Credit history (CIB record)A clean record with the Credit Information Bureau is close to a prerequisite for the best-tier rates; any flag on your CIB report can push you into a higher premium band or a rejection outright.
- Loan tenure and amountShorter tenures and larger, well-documented loans sometimes attract marginally better pricing since they carry lower long-run uncertainty for the bank.
- Negotiating leverageIf you're a premium customer or have offers from competing banks, it is reasonable to ask your bank to match or beat a rival's published rate — banks in a low-loan-demand environment are often willing to shave 0.25–0.50% off the listed premium for a strong applicant.
Mistakes That Quietly Raise Your Real Cost
Comparing only the headline rate
A bank advertising "from 4.58%" may only offer that figure to a narrow top-tier applicant pool. Always ask for the rate range and where you're likely to fall in it before assuming you'll get the cheapest number on the page.
Ignoring processing fees and prepayment charges
Processing fees on personal loans in Nepal are commonly capped around 0.75% of the loan amount, and early-repayment or loan-swap charges can apply on larger loans. Factor these into the true cost, not just the headline interest rate.
Stacking too many EMIs
Taking on a personal loan while already servicing a home or auto loan can push your total EMI-to-income ratio past what a bank considers safe, hurting your ability to borrow again later — even if each individual rate looked attractive.
Recheck the rate before you sign
Because base rates are revised almost every Nepali month, the number a bank quoted you three months ago may no longer be current. Ask for the latest rate sheet on the day you apply, not the day you first inquired.
Frequently Asked Questions
Which bank has the cheapest personal loan interest rate in Nepal right now?
Is the rate I'm quoted today locked in for the whole loan term?
What is the average personal loan interest rate in Nepal in 2026?
Why do some banks charge as much as 15% on a personal loan?
Does a longer tenure reduce my EMI?
Can I negotiate a lower rate with my bank?
Do I need collateral for a personal loan in Nepal?
How often do banks in Nepal revise their loan rates?
Not sure where you'd actually land?
Check your CIB status before you apply, and use the EMI calculator above with a few different rates to see what fits your monthly budget.
Check Your CIB Status →Bottom Line
The cheapest personal loan on paper is not always the cheapest loan for you. Start from this comparison table to shortlist two or three banks in the tier you're realistically likely to qualify for, then ask each one for their current rate sheet, processing fee, and whether the product is fixed or floating before you decide. A half-percentage-point difference on a large, long loan is worth the extra half hour of comparison shopping.
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