Estimate your monthly loan payment and compare the principal, interest, and total repayment.
Results update as you type
Estimated across 12 monthly payments
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a financial institution on a scheduled monthly date. In Nepal, whether you take a Home Loan (घर कर्जा), Auto Loan (सवारी साधन कर्जा), or Personal Loan, installments combine both principal repayment and accrued interest.
Equated Monthly Installment (EMI) in Nepal is computed using reducing-balance amortization:
Commercial banks (Class A, B, and C financial institutions) set loan rates dynamically based on quarterly Base Rates. The formula applied is:
If a bank base rate is 8.5% and the premium spread is 2.5%, the effective annual lending rate charged is 11.0%.
Loan EMI (Equated Monthly Installment) in Nepal is calculated using the reducing-balance amortization formula: EMI = P × r × (1 + r)^n / [(1 + r)^n - 1], where P is loan principal in NPR, r is monthly interest rate (annual interest rate ÷ 12 ÷ 100), and n is total tenure in months.
Commercial banks in Nepal (Class A banks regulated by Nepal Rastra Bank) calculate floating lending rates using the Base Rate plus a Premium Margin (Lending Rate = Base Rate + Spread/Premium %). Base rates are published quarterly by banks such as Nabil, Global IME, NIMB, and NIC Asia.
In a flat rate, interest is calculated on the initial principal for the entire tenure, which significantly inflates true borrowing costs. Under Nepal Rastra Bank directives, banks are required to charge reducing-balance EMI, where interest is charged only on the remaining unpaid principal balance.
Yes. Under Nepal Rastra Bank unified directives, commercial banks cannot charge prepayment or foreclosure penalties on floating-rate individual home loans after a set minimum borrowing tenure (usually 1–2 years), or for loans under specific thresholds.
