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EMI Calculator

Calculate your Monthly Loan EMI in Nepali Rupees

NPR
NPR
%
Years
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Complete Guide to EMI & Loans in Nepal

An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are applied to both interest and principal each month, so that over a specified number of years, the loan is paid off in full.

EMI Formula

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

  • P: Principal Loan Amount
  • R: Monthly Interest Rate (Annual Rate/12/100)
  • N: Loan Tenure (in Months)

Loan Types in Nepal

  • 🏠 Home Loan: Usually 10-25 years tenure.
  • 🚗 Auto Loan: Usually 5-7 years tenure.
  • 💼 Personal Loan: High interest, 1-5 years.
  • 🎓 Education Loan: For higher studies abroad.

Tips to Reduce Your EMI

  • 🏦
    Compare Base Rates: Banks in Nepal have different base rates. Always choose a bank with a lower base rate to get a better deal on your variable interest rate.
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    Higher Down Payment: As our calculator shows, increasing your down payment significantly reduces your loan principal and the total interest you'll pay.
  • ⏱️
    Pre-payments: If you get a bonus or extra income, try making an occasional principal pre-payment. This reduces the loan tenure and saves massive interest in the long run.

Frequently Asked Questions (FAQ)

What is a 'Base Rate' in Nepal? ▼

The Base Rate is the minimum interest rate a bank can charge its customers. Banks usually charge an "Interest Spread" on top of this (e.g., Base Rate + 2%).

Are EMI rates fixed in Nepal? ▼

Most loans in Nepal are on a "floating" or "variable" rate, meaning your EMI can change if the bank's base rate changes. However, some banks offer fixed-rate loans for a limited period.

Can I use this for business loans? ▼

Yes! The calculation logic remains the same for any EMI-based loan, including business term loans, provided they use the reducing balance method.