Bike Loan & EMI in Nepal: Interest Rates & EMI Plans

What is Bike EMI and why are they so Popular in Nepal

In Nepal, more and more people are choosing to buy bikes but most don't have enough money to buy them so the simple and easy way they are choosing to buy is by using bike EMI. People buy bikes even if they have to take loans because bikes are useful for daily travel, especially in cities like Kathmandu where traffic is heavy. That’s why many people look for bike EMI, where they can pay in monthly parts instead of paying everything full at the beginning.

EMI, whose full form is Equated Monthly Installment is basically a type of money paying system which allows buyers to pay for their bike slowly a month rather than at once at a bike dealers place, which is easier for most people. The popularity of bike EMI in Nepal can be seen from search terms like “bike EMI in Nepal,” “bike EMI Nepal,” and “bike EMI calculator” which are being frequently searched for by many people..

Main reasons why bike loans are so popular in Nepal:

• People can buy a bike without paying the full amount at once so they don’t have to face difficulties gathering all the money at once.

• EMI makes it easier to manage money.

• There are Bike EMI calculators which help users know their monthly cost before applying.

This article will guide you through everything you need to know about bike EMI, including interest rates, EMI plans, eligibility, and how to calculate your monthly payments easily. 

Let’s begin then into this deep dive in bike loans in Nepal.

What Is a Bike Loan and How Does It Work in Nepal?

A bike loan is simply said the money you borrow from a bank or finance company to buy a bike. And for this loan instead of paying the full amount at once, you pay a small part every month. This monthly payment is also called an EMI (Equated Monthly Installment) but in this you pay to the bank rather than to a dealer. Many people in Nepal prefer this method because it makes buying a bike more affordable since it’s cheaper than getting EMI from dealers.

Bike loans in Nepal are becoming more popular, especially in cities like Kathmandu where bikes are now nearly a must-have for daily travel in this traffic heavy Kathmandu. With growing interest in terms like bike EMI in Nepal, bike EMI calculator, and bike EMI Nepal, people are trying to find the best deals and understand how much they’ll have to pay monthly.

Here’s how a bike loan or EMI usually works in Nepal:

• Apply for a loan: You first will go to a bank or finance company and apply for a bike loan.

• Choose a bike and a dealer: Or you also have a second option which is to buy your bike from a dealer or others who offer EMI options.

• Pay a down payment: This is the first payment you must make with the dealer or bank, and it’s just usually 10% to 30% of the bike’s price so it’s much more affordable for you to buy.

• Loan approval: The bank from which you take loan will check your documents and income before giving you the loan as for or the dealer option their partner finance company will also similarly check your document and then allow you to buy the bike at their showroom using EMI options.

• Pay EMIs monthly: After the loan is approved, you’ll pay a fixed amount every month for a certain period (usually 1–3 years).

• Use a bike EMI calculator: You can also use a bike EMI calculator which are tools that help you check how much EMI you will need to pay every month.

With the help of a bike EMI calculator, you can plan your budget better. This makes it easier to decide which bike you can afford and which EMI plan suits you best. Whether you're looking to buy a scooter or a high-end bike, EMI options in Nepal make the process simple and convenient.

Bike Loans in Nepal 

In 2025, various banks and financial institutions in Nepal will provide bike loans with interest rates ranging from 7.70% to 13.21%, depending on the lender and loan terms. These rates are determined and changed by factors such as the borrower's credit profile, loan amount, and repayment tenure.​

Approximate Interest Rates from Selected Institutions:

• Lumbini Bikas Bank: 7.70% – 11.70%

• ICFC Finance: 8.55% – 12.55%

• Manjushree Finance: 9.21% – 13.21%​

These rates can be changed and may change based on individual circumstances and bank policies. ​

Some banks, like Everest Bank, provide vehicle loans with interest rates starting at 9.00%, with the exact rate depending on the bank's base rate and the borrower's profile. 

And we have dealer options which provide promotional interest rates. For example, we have MAW Enterprises that provides Yamaha bikes with an interest rate as low as 7.99%. 

It's advisable for you to use a bike EMI calculator to calculate your monthly payments based on the loan amount, interest rate, and tenure. This tool can help you plan your finances effectively when considering a bike loan in Nepal.

EMI Plans Explained: How Much Will You Pay Monthly?

When you take a bike loan in Nepal, you don’t have to pay the full price of the bike at once. Instead, you pay it in small parts every month — this is called an EMI (Equated Monthly Installment). EMI makes buying a bike easier and more cheaper for many people, especially for students and working professionals who can’t pay at once fully.

Here’s how EMI plans work and how much you might need to pay every month:

What is an EMI?

An EMI is a fixed amount you pay every month to the bank or finance company until your loan is fully paid off. It includes both the loan amount and the interest.

How Is EMI Calculated?

To calculate your EMI, you need three things:

• Loan Amount: How much loan you are borrowing

• Interest Rate: The rate charged by the bank

• Loan Tenure: The number of months/years you’ll take to repay

You can use a bike EMI calculator to check your monthly payment. Just enter these three things and it will show your EMI.

Example:

Let’s say you’re buying a bike worth Rs. 3 lakhs  and are taking a loan for Rs. 2.5 lakhs at 10% interest for 3 years.

• Monthly EMI will be around Rs. 8,063

• Total payment after 3 years = Rs. 2,90,268

(Use a trusted bike EMI calculator to get exact results based on your loan.).

So, before choosing your bike, always check the bike EMI in Nepal based on your budget and compare plans to avoid surprises.

Eligibility Criteria

To get a bike loan in Nepal, you need to meet certain basic requirements. These rules are set by banks and financial companies to make sure you are able to repay the loan. Most of these rules are easy to meet if you have a regular income or a stable source of money.

Here’s a simple explanation of who can apply and what you’ll need:

Can You Apply for a Bike Loan in Nepal?

1. Age 

• You must be at least 18 years old to apply for a bike loan in Nepal.

2. Income:

• You must have a reliable monthly income.

• For people with a job, just a regular salary is enough.

• For self-employed people or business owners, they will need to provide proof of income (like tax documents or bank statements).

3. Citizenship:

• You must be a Nepali citizen.

4. Credit:

• A good credit history will help you get to better interest rates.

• If you’ve never taken a loan before, some banks might ask for a guarantor (someone who promises to repay the loan if you don’t).

5. Down Payment:

• You will have to pay at least 10% to 30% of the bike’s price as a down payment first as most dealers need that much.

If you liked this article and want to read more such traffic related articles then you can check out our bike article page in our website Atal Auto where we post such transportation related articles frequently.

Documents for Taking Bike Loan Application in Nepal

To apply for a bike loan in Nepal, you must provide some basic documents that help banks or finance companies to verify your identity, income, and vehicle details. These documents are important whether you're applying for a bike EMI in Nepal through a bank or from a showroom.

Basic Documents Needed 

• Citizenship Certificate – This certificate is for proving that you’re a Nepali citizen.

• Passport-size Photos – You usually just need 2 copies which are enough.

• Bike Quotation Invoice – Get this invoice from the showrooms where you are planning to buy the bike. This invoice has the bike's price and model.

• Loan Application Form – This form is available at the bank or financing office. You need to fill it out properly.
  
  

For People with Job

• Salary Slip (Last 1-3 months) – This slip is used to prove your monthly income.

• Employment Letter or Job Contract – Some lenders ask this to confirm whether you are working or not.

• Bank Statement (Last 3-6 months) – This statement shows your income deposits and spending habits.
  
  

For Business Owners

• Business Registration Certificate – To prove that your business is legal.

• Income Source Proof – The income source proof could be tax clearance or sales invoices.

• Bank Statement (Last 6 months) – This is used to show your business income flow.
  
  

For Students

• Guardian’s Documents – Guardians documents like their citizenship, income proof, and relationship to you need to be provided.

• Guarantee Letter – From a guardian who promises to repay if you can’t.

The documents you will need to get a bike loan in Nepal are pretty simple and easy to gather. Whether you're applying through a bank or from a dealer or workshop, you should have all needed things ready. These help lenders to decide how much EMI you can pay monthly and thus make the loan process fast and smooth.

If you have any questions or are confused about anything feel free to contact us we are always here to help you!

Conclusion

Taking a bike loan in Nepal can be a good and a smart decision if done properly and wisely. It helps you own a bike without paying the full price at once. With rising fuel prices and growing traffic in cities like Kathmandu, bikes are more useful to drive and cheaper. And thanks to options like bike EMI in Nepal and services provided by different showrooms, it's now easier than ever to ride your dream bike with a small monthly payment.