Financial Tools

Loan EMI Calculator

Calculate your exact monthly installment for any loan — home, car, personal, or business. View the full repayment schedule and total interest breakdown.

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🏠 Home: 9–12% 🚗 Car: 11–14% 👤 Personal: 13–18%
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Nepal Bank Loan Rate Reference

Approximate interest rates from major Nepali banks (check with bank for current rates).

Loan Type Typical Rate Max Tenure Max LTV
🏠 Home Loan 9% – 12% Up to 25 years 60–70% of property value
🚗 Auto / Car Loan 11% – 14% Up to 7 years 80% of vehicle value
👤 Personal Loan 13% – 18% Up to 5 years Based on income
🏢 Business Loan 10% – 13% Up to 10 years Based on collateral
🎓 Education Loan 8% – 11% Up to 10 years Up to Rs. 40 lakh
🪙 Gold Loan 9% – 12% Up to 3 years 75% of gold value
🌾 Agricultural Loan 7% – 10% Varies Subsidized by NRB

Rates are indicative and change based on NRB base rate. Always confirm with your bank.

EMI Calculator Guide — Home Loan, Personal Loan & More

An EMI calculator helps you plan your loan repayment before you take a loan. By entering the loan amount, interest rate, and tenure, you instantly see your monthly obligation and the total cost of borrowing. This is critical in Nepal where bank interest rates change with the Nepal Rastra Bank (NRB) base rate, and understanding your EMI prevents financial stress.

EMI Formula Explained

The standard EMI formula is: EMI = P × r × (1+r)^n ÷ ((1+r)^n - 1), where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly payments. For a Rs. 50 lakh home loan at 10.5% annual interest for 20 years: r = 10.5/12/100 = 0.00875, n = 240 months. EMI ≈ Rs. 49,919 per month.

How to Compare Loan Offers

When comparing loan offers from different Nepali banks, don't just compare the interest rate. Also consider: processing fee (0.5–1.5% of loan amount), prepayment penalty, documentation requirements, and disbursement speed. The bank with the lowest rate isn't always the best deal once fees are included. Use our calculator to compare the total cost (EMI × tenure + fees) for each offer.

Smart Loan Planning Tips for Nepal

Scenario Recommendation Impact
EMI too high Extend tenure by 3–5 years Lowers EMI but increases total interest
Want to save interest Shorten tenure or prepay Save lakhs over loan life
Rate floats up Increase EMI (not tenure) Prevents tenure from ballooning
Good cash flow Make lump sum prepayments Reduces outstanding principal fast
Comparing banks Use Total Cost = EMI×n + fees More accurate than rate alone

Frequently Asked Questions

EMI stands for Equated Monthly Installment. It is the fixed amount you pay to your lender every month to repay a loan. Each EMI consists of two parts: the principal (the actual loan amount being repaid) and the interest (the cost charged by the lender). In early months, more of the EMI goes toward interest. Over time, the principal portion increases.
EMI is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly installments. Our calculator applies this formula instantly for any loan amount, rate, and tenure.
Flat rate interest is calculated on the original loan amount throughout the tenure. Reducing balance (diminishing balance) calculates interest only on the outstanding principal each month, which decreases as you repay. Reducing balance results in lower effective interest. Most home loans, car loans, and personal loans in Nepal use reducing balance method.
Home loan interest rates in Nepal vary between banks and are linked to the Nepal Rastra Bank (NRB) base rate. As of recent periods, home loan rates typically range from 9% to 12% per annum depending on the bank, loan tenure, and borrower profile. Check with individual banks like NMB, Everest Bank, Standard Chartered Nepal, or NIC Asia for current rates.
Most Nepali banks lend up to 60-70% of the property value (Loan to Value ratio). Eligibility depends on your monthly income — typically your EMI should not exceed 40-50% of your monthly income. For example, if your salary is Rs. 50,000/month, most banks will approve an EMI up to Rs. 20,000-25,000.
An amortization schedule is a complete table showing each monthly payment over the life of the loan, broken down into the principal and interest components. It shows how your outstanding balance decreases month by month. Our calculator generates the full amortization schedule for any loan.
You can reduce your EMI by: (1) Increasing the loan tenure — longer repayment period means lower monthly payment but more total interest paid. (2) Making a larger down payment — borrowing less means lower EMI. (3) Negotiating a lower interest rate with your bank. (4) Prepaying the loan — making extra payments reduces the outstanding principal and future EMIs.
Nepali banks typically charge a processing fee of 0.5% to 1.5% of the loan amount when you take out a loan. This is a one-time fee charged at disbursement and is separate from your EMI. Some banks also charge annual service fees or insurance premiums.
Missing an EMI payment attracts a late payment penalty (typically 1-2% per month on the overdue amount in Nepal). It also negatively affects your credit score with the Credit Information Bureau (CIB). If you miss multiple EMIs, the bank may classify the loan as Non-Performing Loan (NPL) and take legal action.
Shorter tenure: Higher EMI, less total interest paid, loan cleared faster, less financial burden long-term. Longer tenure: Lower EMI, more affordable monthly payment, but significantly more total interest paid over the life of the loan. Choose shorter tenure if you can comfortably afford the higher EMI — you save lakhs in interest.
Prepayment means paying extra money toward your loan principal before the due date, which reduces future EMIs or the remaining tenure. Foreclosure means fully repaying the entire outstanding loan before the tenure ends. In Nepal, banks may charge a prepayment penalty of 1-2%, though this varies by bank and loan type.
The down payment is the portion of the purchase price you pay upfront. A higher down payment reduces the loan amount, which directly reduces your EMI and total interest paid. For example, on a Rs. 50 lakh home loan at 10% for 20 years, increasing down payment from 20% to 30% saves approximately Rs. 6,000/month in EMI.