Term Loan Rates in Nepal (2025): Compare Bank Loan Offers
Looking for the most updated term loan rates in Nepal? Here’s a full list of interest rates from commercial and development banks. Whether you’re financing new equipment, business expansion, or property purchase, comparing term loan rates helps reduce cost and improve your repayment flexibility. Use our table below to compare rates, fees, and eligibility across banks.
What Are Term Loans?
A term loan is a lump-sum amount borrowed from a bank or financial institution for a fixed period usually from 1 to 10 years.
The borrower repays the loan in equated monthly installments (EMIs) that include both principal and interest.
Term loans are generally secured by collateral such as land, building, or fixed deposits. They are ideal for:
- Business expansion or factory setup
- Purchase of machinery or vehicles
- Commercial property investment
- Refinancing high-interest debts
Because they have defined repayment schedules, term loan rates are slightly lower than unsecured short-term facilities.
Term Loan vs. Working Capital Loan
| Feature | Term Loan | Working Capital Loan |
|---|---|---|
| Purpose | Long-term asset purchase or business expansion | Daily operations & inventory management |
| Tenure | Fixed (1 – 10 years) | Revolving (short-term) |
| Repayment | Monthly EMI schedule | Flexible based on usage |
| Collateral | Required | Usually required |
| Interest Rate | Slightly lower | Slightly higher |
| Ideal For | Expansion & capital investment | Seasonal cash flow needs |
Understanding this distinction helps you select the right facility and manage your borrowing cost effectively.
