What types of home loan interest rates do banks in Nepal offer?

Banks in Nepal generally offer fixed-rate loans (fixed interest over a set period) and floating-rate loans, often calculated as Base Rate + Margin (premium).

What documents do I need to apply for a home loan in Nepal?

Typically you need identity proof (citizenship or passport), recent photos, income proof (salary slips or business documents), and property-related documents (land-ownership certificate, blueprints/house plan, land tax receipts, building/registration approval, etc.).

How much down payment or margin is required for a home loan in Nepal?

It depends on the bank and property value, but many banks expect borrowers to pay at least 20–30 % (or more) of property value upfront as down payment or margin before loan disbursement.

What else should I consider besides the interest rate when selecting a home loan in Nepal?

Besides interest rate, you should check loan tenure and EMI affordability, processing and legal fees, property documentation and valuation, bank’s reputation and branch/ATM access, and whether the loan uses fixed or floating interest.

Who is eligible to get a home loan in Nepal?

Generally Nepalese citizens (or eligible NRNs/foreign-income individuals if the bank allows), with stable income or business, valid identity, and a legally valid property/documented land are eligible. The bank reviews income stability, property value, and debt-to-income ratio before approval.

Home Loan Interest Rate in Nepal (2025 Guide)

If you’re planning to buy or build a home in Nepal, comparing home loan interest rate across banks in Nepal is a smart first step. But interest-rate numbers alone don’t tell the whole story. Before applying, it helps to understand how home loans work in Nepal, what types of interest rates banks offer, and which factors affect the actual cost of your loan.

Home Loan

NMB Bank Limited

Bankrate Nepal Review

Interest Rate(P.A) As of December 3

9.99%offer6.72% - 8.72%6.72% - 8.72%7.22% - 9.22%8.22% - 10.22%

Processing Fee

N.AN.AN.AN.AN.A

Tenure

10 years20 years20 years--

Home Loan

Pokhara Finance Limited

Bankrate Nepal Review

Interest Rate(P.A) As of December 3

9.00% - 13.00%

Processing Fee

N.A

Tenure

Home Loan

Prabhu Bank Limited

Bankrate Nepal Review

Interest Rate(P.A) As of December 3

8.68% - 10.68%8.68% - 10.68%9.99% - 9.99%11.99% - 11.99%

Processing Fee

N.AN.AN.AN.A

Tenure

-25 years5 years-

Home Loan

Prime Commercial Bank Limited

Bankrate Nepal Review

Interest Rate(P.A) As of December 3

6.73% - 11.73%6.73% - 11.73%10.00% - 12.00%

Processing Fee

N.AN.AN.A

Tenure

--20 years

Home Loan

Progressive Finance Limited

Bankrate Nepal Review

2.5

Interest Rate(P.A) As of December 3

8.69% - 11.69%

Processing Fee

N.A

Tenure

Home Loan

Rastriya Banijya Bank Limited

Bankrate Nepal Review

Interest Rate(P.A) As of December 3

5.14% - 5.14%5.21% - 5.21%6.39% - 6.64%6.89% - 7.64%6.89% - 7.39%6.89% - 7.39%6.89% - 6.89%9.25% - 9.75%9.50% - 9.75%

Processing Fee

N.AN.AN.A0.75%0.75%0.75%N.A0.75%0.75%

Tenure

---20 years20 years15 years-15 years20 years

Home Loan

Reliance Finance Limited

Bankrate Nepal Review

2.5

Interest Rate(P.A) As of December 3

8.73% - 10.73%

Processing Fee

N.A

Tenure

Home Loan

Sanima Bank Limited

Bankrate Nepal Review

Interest Rate(P.A) As of December 3

7.65% - 9.65%

Processing Fee

N.A

Tenure

Home Loan

Shangrila Development Bank Limited

Bankrate Nepal Review

2.5

Interest Rate(P.A) As of December 3

7.24% - 11.23%

Processing Fee

N.A

Tenure

Home Loan

Shine Resunga Development Bank Limited

Bankrate Nepal Review

Interest Rate(P.A) As of December 3

6.89% - 10.89%

Processing Fee

N.A

Tenure

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Fixed vs. Floating Home Loan Interest Rates — Know the Difference

Fixed-rate home loan — The interest rate remains the same for a defined period (or sometimes the entire loan tenure). That gives you predictable monthly instalments (EMI), which helps with budgeting.
Floating (variable) interest home loan — Many banks in Nepal base floating rates on their internal “Base Rate + Premium (Margin).” As the base rate changes (per central bank or market conditions), your interest rate and EMI may change too.

Which is better?

If you prefer payment stability and predictable expenses, consider a fixed rate.
If you expect interest rates to drop or are okay with some fluctuation, a floating rate may cost less over time.

Most Nepali banks offer both options; choosing depends on your comfort with uncertainty and financial planning.

What to Consider When Comparing Home Loans in Nepal

Before choosing a loan, don’t just look at the headline interest rate. Compare:

Fixed or floating rate, and what works best for your financial plan.
Loan tenure: A longer tenure lowers monthly payments but increases total interest paid.
Down payment/margin requirement how much you need to pay upfront.
Processing fees, valuation fees, legal/registration costs or other additional charges.
Bank reliability — branch/ATM network, transparency, customer service.
Legal status of property — clear papers, approved maps/blueprints, valid ownership documentation.

A well-informed decision can save you a lot in long-term costs and hassles.

FAQ’s

Banks offer mainly two types fixed-rate loans (fixed interest over a period) and floating-rate loans, usually calculated as “Base Rate + Premium (margin).”

Typically: citizenship/passport, recent photos, income proof (salary slips or business documents), and property documents (land-ownership certificate, blueprints or building approval, tax/land-revenue receipts, boundary/“Char Killa” certificate, etc.).

The floating rate can vary, meaning your EMI might go up or down depending on market conditions. Fixed rate provides stability but might be higher initially. Each has pros and cons depending on interest-rate trends and your financial comfort.

Consider loan tenure, total interest over loan life, bank fees/processing charges, property paperwork, loan-to-value ratio (LTV), and the bank’s credibility/network.

Any Nepalese citizen (or eligible NRN / foreign-income person depending on bank rules), with a stable income or business, valid identity and property papers — banks assess individual eligibility on income stability, property valuation, age, and debt-to-income ratio.