Short answer: yes, but only if your business vehicle was damaged or destroyed in the September 2025 unrest, and only for replacing that specific vehicle. Nepal Rastra Bank created a targeted exemption that lets banks finance up to 80% of a replacement commercial vehicle's value, cutting the down payment to roughly 20% instead of the standard 40%. This guide walks through exactly who qualifies, what documents you will need, and where the exemption stops applying.
Quick Answer
- The 80% LTV exemption applies specifically to businesses and industries whose commercial vehicles or transport equipment were damaged or destroyed during the Gen Z movement (September 2025).
- It is available for replacement purchases only — not for buying an additional vehicle or upgrading an undamaged fleet.
- The general LTV cap for ordinary business or private vehicle loans remains 60%; this exemption is a specific carve-out on top of that baseline rule.
- The same 80% ceiling was reaffirmed and extended through the FY 2026/27 monetary policy directives issued in July 2026, alongside a separate 80% window for large public-transport EVs.
- You will typically need to document ownership, proof of damage, and business registration before a bank approves the higher LTV.
Where This Rule Came From
The provision traces back to the government's economic relief package following the September 2025 unrest. Nepal's interim government unveiled a wide-ranging economic relief and austerity package after the Gen Z movement, which left more than 70 people dead and caused billions of rupees in damage; as part of that package, for businesses whose commercial vehicles or transport equipment were destroyed, banks were directed to provide loans with an LTV ratio of up to 80% to facilitate replacement.
Nepal Rastra Bank then formalized this through its own directive. The official circular stated that for industries and business establishments directly affected by the Gen Z movement, where commercial vehicles and transportation equipment were damaged and require replacement, banks may maintain a loan-to-value ratio of up to 80%.
The exemption has stayed in force since. When NRB implemented the FY 2026/27 monetary policy in July 2026, the 80% LTV ratio for large passenger EVs was confirmed to also cover loans replacing vehicles damaged during the Gen Z movement, and commercially operated transport vehicles used by industries that were damaged during the protests. A related directive similarly confirmed that banks may finance up to 80% for replacing commercial vehicles and transport equipment damaged by the unrest, provided they are used for business purposes.
Who Actually Qualifies
Transport and logistics operators
Businesses whose trucks, vans, buses, or delivery vehicles were burned or destroyed during the protests.
Industries with damaged fleet vehicles
Industries and business establishments directly affected by the movement, where commercial vehicles and transport equipment were damaged and require replacement.
Businesses replacing transport equipment
Not limited to passenger vehicles — commercially operated transport equipment used by industries also qualifies under the confirmed FY 2026/27 directives.
What This Rule Does Not Cover
- Buying a personal or private vehicle unrelated to business use
- Purchasing an additional vehicle to expand a fleet that was not damaged
- Vehicles damaged for reasons unrelated to the September 2025 unrest (accidents, natural wear, other unrest events)
- Non-commercial or non-transport business assets, even if damaged in the same period
Documents and Proof You Will Likely Need
Because this is a targeted exemption rather than a standard product, banks apply extra verification before approving the higher LTV. Based on how similar relief provisions have typically been administered, expect to provide:
- Proof of ownership of the damaged vehicle (bluebook/registration certificate) as it stood before the incident.
- Proof of damage or destruction — this can include police reports, insurance assessment reports, photographs, or a formal damage certificate from local authorities, depending on what your bank's compliance team requires.
- Business registration documents confirming the vehicle was used commercially (PAN/VAT registration, company registration certificate, or firm registration).
- Insurance claim status, if the vehicle was insured — the National Planning Commission has urged immediate disbursement of insurance claims for insured properties damaged in the unrest, and recommended government-backed short-term concessional loans where insurers face liquidity issues in paying out.
- A quotation or proforma invoice for the replacement vehicle you intend to purchase, since the loan is tied to that specific replacement transaction.
Exact documentation requirements vary by bank. Confirm the specific checklist with your relationship manager or branch before applying, since implementation details can differ between institutions even under the same NRB directive.
How to Apply: Step by Step
- Confirm your vehicle and business meet the criteria. The vehicle must have been used commercially and damaged specifically during the September 2025 unrest.
- Gather your proof-of-damage documentation. Collect police reports, insurance assessments, or local authority certificates that establish when and how the vehicle was damaged.
- File or update your insurance claim, if applicable. A pending or settled claim strengthens your application and may factor into how the bank structures the loan.
- Approach your bank's relationship or SME lending desk. Ask specifically about the 80% LTV replacement-vehicle provision rather than a standard auto loan, since it is processed differently.
- Get a valuation on the replacement vehicle. The bank's approved valuator assesses the new vehicle; your 80% loan amount is based on this appraisal.
- Complete standard credit checks. Income and repayment capacity assessments still apply — the exemption changes the LTV ceiling, not the underlying creditworthiness requirement.
80% vs 60% Financing: What It Means for Your Cash Outlay
Use this calculator to see how much cash you would need upfront under the replacement-vehicle exemption compared with the standard business vehicle loan rule.
Replacement Vehicle Down Payment Calculator
Please enter a valid vehicle price greater than zero.
Other Relief Measures Worth Knowing About
The vehicle-replacement LTV exemption is one piece of a broader relief package, and combining it with other measures can meaningfully change your recovery math.
| Measure | What it does |
|---|---|
| Payroll Protection Scheme | Companies paying salaries through the banking system can access loans at the base rate plus a 0.5% premium, with an additional 2% subsidy for six months funded through the National Reconstruction Fund, to help prevent layoffs. |
| Loan restructuring | Businesses whose working capital assets were fully damaged may be allowed to convert loans into installment-based financing on request, potentially retaining prior loan classification status. |
| Vehicle tax waiver on deregistration | Provincial governments have been urged to waive vehicle taxes when deregistering vehicles that were completely destroyed during the protests. |
| Insurance claim disbursement support | Government support has been proposed for prompt disbursement of insurance claims, including concessional short-term loans if insurers face liquidity constraints. |
Common Mistakes to Avoid
- Applying for a standard auto loan instead of flagging the exemption. If you don't specifically raise the replacement-vehicle provision, some branch staff may default to processing it as an ordinary 60% LTV loan.
- Assuming any business vehicle purchase qualifies. The exemption is tied to a specific damaged vehicle being replaced — it is not a general 80% financing option for business vehicle purchases going forward.
- Delaying documentation of the damage. Police reports and damage assessments are easier to obtain soon after an incident; gather this evidence as early as possible.
- Not checking whether your insurance claim affects the loan structure. If your insurer pays out separately, coordinate the timing with your bank so the two do not create a financing gap or an over-collateralized loan.
Frequently Asked Questions
Can any business get an 80% vehicle loan in Nepal right now?
No. The 80% LTV exemption is specifically for businesses replacing a commercial vehicle or transport equipment that was damaged or destroyed during the September 2025 Gen Z movement. Ordinary business or private vehicle purchases remain subject to the standard 60% LTV cap.
Does the vehicle have to be exactly the same type as the one that was damaged?
The provision is framed around replacing damaged commercial vehicles and transport equipment used by an affected business, but it does not require an identical make or model. Confirm with your bank whether your intended replacement vehicle falls within what they consider a reasonable replacement for the damaged asset.
Is this exemption still available in 2026?
Yes. NRB's directives implementing the FY 2026/27 monetary policy, issued around July 2026, confirmed that the 80% LTV for replacing vehicles and transport equipment damaged during the Gen Z movement remained in effect.
What if my vehicle was insured — can I still get the 80% loan?
Having insurance does not disqualify you, but you should coordinate the timing of your insurance claim with your loan application. Government relief measures have also called for faster disbursement of insurance claims on damaged property, which can affect how much financing you actually need.
Does this rule apply to personal vehicles damaged in the unrest?
Based on the directive's language, the 80% exemption is targeted at commercial vehicles and transport equipment used by businesses and industries, not personal or private-use vehicles. A personal vehicle damaged in the unrest would generally fall under standard private-vehicle financing rules.
Related reading: See the full current LTV picture in Auto Loan LTV Rules in Nepal 2026, or read about the separate 80% LTV rule for large public-transport EVs if you operate an electric fleet.
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