The Number Every Home Buyer In Nepal Wants To Know
Before any Nepali family sits down with a bank's loan officer, before they collect property documents or arrange for an engineer's valuation, before they even tell their relatives they are thinking about a home loan, they want to know one number. How much will I have to pay every month?
That number is the EMI. And the frustrating thing is that most people looking for it online either find a bare calculator with no context, or a vague explanation of the formula with no actual figures for Nepal's market. What they actually want is simple: if I borrow 50 lakh at current Nepal interest rates, what comes out of my account every single month?
This article gives you exactly that. Comprehensive EMI tables for the four most common home loan amounts in Nepal, NPR 25 lakh, 50 lakh, 75 lakh, and 1 crore, calculated at the interest rate range that Nepal's banks are currently operating in, across every major tenure option. No vague estimates. Real numbers, worked out at rates specific to Nepal's current banking environment.
To calculate your exact EMI for any specific amount, rate, and tenure combination, including a complete amortization schedule showing how much of each payment goes to principal versus interest, use the Merokalam EMI Calculator at https://merokalam.com/emi-calculator-nepal/.
How Nepal's Home Loan Interest Rates Work Right Now
Before looking at any EMI table, you need to understand how Nepal's home loan rates are structured, because they are different from what most people assume.
Nepal's commercial banks do not set a single fixed interest rate for home loans. Instead, each bank sets what is called a Base Rate, the minimum rate below which the bank cannot legally lend, calculated from the bank's own cost of funds and reviewed quarterly. Your actual home loan rate is the Base Rate plus a Premium (sometimes called a Spread or Margin) that the bank charges on top.
So your home loan interest rate = Base Rate + Premium.
As of early BS 2083 (April 2026), most Nepal commercial banks have base rates in the range of 4.65% to 6.5%, depending on the bank. Premiums for home loans typically range from 2% to 5% above the base rate, resulting in effective home loan interest rates roughly between 8% and 12% annually for most borrowers.
This structure has an important practical implication: your interest rate is not fixed forever. When the base rate changes, which happens quarterly, your EMI can go up or down accordingly. This is called a floating rate loan, and it is by far the most common type in Nepal. Fixed-rate loans (where the rate stays constant regardless of base rate movement) are available from some banks but are typically priced higher to compensate for the certainty they offer.
For the EMI tables in this article, we use three representative rates: 9%, 10%, and 11% per annum. These cover the realistic range for most borrowers at Nepal's commercial banks in the current environment. At the time you apply, your actual rate depends on your specific bank, their current base rate, the premium they charge for housing loans, and your borrower profile.
A quick way to check where rates are: if a bank tells you their base rate is 5.5% and their home loan premium is 3.5%, your effective rate is 9%. If the base rate is 6% and premium is 4.5%, your rate is 10.5%. Always ask for both numbers and add them yourself.
The EMI Formula, And Why You Should Not Calculate It By Hand
The standard EMI formula is:
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]
Where: P = Principal loan amount (the amount you borrow) R = Monthly interest rate = Annual rate ÷ 12 ÷ 100 N = Total number of monthly installments (tenure in years × 12)
Example: For a 50 lakh loan (P = 5,000,000) at 10% annual interest (R = 10/12/100 = 0.008333) over 20 years (N = 240):
EMI = [5,000,000 × 0.008333 × (1.008333)^240] / [(1.008333)^240 - 1]
(1.008333)^240 = approximately 7.3281
EMI = [5,000,000 × 0.008333 × 7.3281] / [7.3281 - 1] = [305,381] / [6.3281] = approximately NPR 48,251 per month
This calculation is straightforward on paper but extremely tedious to do accurately for multiple amounts and rates. The (1+R)^N term requires either a scientific calculator or careful logarithm work. One arithmetic error and your entire table is wrong.
This is why the Merokalam EMI Calculator at https://merokalam.com/emi-calculator-nepal/ exists. You enter the loan amount, annual interest rate, and tenure. The result, monthly EMI, total interest payable, and total repayment, appears in seconds. The calculator also generates a month-by-month amortization schedule so you can see exactly how your balance reduces over time.
The tables below are pre-calculated using the same formula. Use them for quick reference and comparison, then use the Merokalam calculator when you have specific numbers from your bank.
EMI Tables For 25 Lakh Loans
A 25 lakh (NPR 2,500,000) loan is typical for a smaller property purchase, land acquisition outside the Kathmandu Valley, or a construction loan for a family home in a secondary city.
Table 4A: Monthly EMI For NPR 25 Lakh Loan
| Tenure | At 9% p.a. | At 10% p.a. | At 11% p.a. |
|---|---|---|---|
| 5 years | NPR 51,896 | NPR 53,117 | NPR 54,358 |
| 10 years | NPR 31,672 | NPR 33,038 | NPR 34,440 |
| 15 years | NPR 25,355 | NPR 26,875 | NPR 28,443 |
| 20 years | NPR 22,497 | NPR 24,126 | NPR 25,805 |
| 25 years | NPR 20,983 | NPR 22,726 | NPR 24,530 |
Table 4B: Total Interest Paid For NPR 25 Lakh Loan
| Tenure | At 9% p.a. | At 10% p.a. | At 11% p.a. |
|---|---|---|---|
| 5 years | NPR 6.14 lakh | NPR 6.87 lakh | NPR 7.61 lakh |
| 10 years | NPR 13.01 lakh | NPR 14.65 lakh | NPR 16.33 lakh |
| 15 years | NPR 20.64 lakh | NPR 23.37 lakh | NPR 26.20 lakh |
| 20 years | NPR 28.99 lakh | NPR 32.90 lakh | NPR 36.93 lakh |
| 25 years | NPR 37.95 lakh | NPR 43.18 lakh | NPR 48.59 lakh |
Key observation: On a 25 lakh loan at 10%, taking 25 years instead of 15 years reduces your monthly EMI by only NPR 4,149 (from NPR 26,875 to NPR 22,726). But that ten extra years costs you an additional NPR 19.81 lakh in total interest. The "savings" on monthly payments cost nearly 20 lakh over the loan's life.
EMI Tables For 50 Lakh Loans
A 50 lakh (NPR 5,000,000) loan is the most common range for middle-class home purchases in Nepal, a flat in Kathmandu's outer ring, a house in Pokhara or Biratnagar, or a constructed property in a mid-range location.
Table 5A: Monthly EMI For NPR 50 Lakh Loan
| Tenure | At 9% p.a. | At 10% p.a. | At 11% p.a. |
|---|---|---|---|
| 5 years | NPR 1,03,791 | NPR 1,06,235 | NPR 1,08,715 |
| 10 years | NPR 63,344 | NPR 66,075 | NPR 68,882 |
| 15 years | NPR 50,713 | NPR 53,731 | NPR 56,869 |
| 20 years | NPR 44,986 | NPR 48,251 | NPR 51,609 |
| 25 years | NPR 41,960 | NPR 45,436 | NPR 49,051 |
| 30 years | NPR 40,231 | NPR 43,920 | NPR 47,619 |
Table 5B: Total Interest Paid For NPR 50 Lakh Loan
| Tenure | At 9% p.a. | At 10% p.a. | At 11% p.a. |
|---|---|---|---|
| 5 years | NPR 12.28 lakh | NPR 13.74 lakh | NPR 15.23 lakh |
| 10 years | NPR 26.01 lakh | NPR 29.29 lakh | NPR 32.66 lakh |
| 15 years | NPR 41.28 lakh | NPR 46.72 lakh | NPR 52.36 lakh |
| 20 years | NPR 57.97 lakh | NPR 65.80 lakh | NPR 73.86 lakh |
| 25 years | NPR 75.88 lakh | NPR 86.31 lakh | NPR 97.15 lakh |
| 30 years | NPR 94.83 lakh | NPR 1.08 crore | NPR 1.21 crore |
The 30-year row is particularly striking. On a 50 lakh loan at 10% over 30 years, you pay NPR 1.08 crore in interest, more than double the original loan amount. The property you financed for 50 lakh actually costs you 1.58 crore in total repayments. This is not unusual in any mortgage market, but seeing the actual NPR figure makes the reality concrete in a way the percentage rate does not.
The 20-year tenure at 10% (NPR 48,251/month) versus the 30-year tenure (NPR 43,920/month) is a common decision point. The monthly difference is NPR 4,331. Over the entire loan, the 20-year borrower saves NPR 42.23 lakh in total interest, more than 84% of the original loan amount, by paying NPR 4,331 more per month. For most families with stable income, this trade-off strongly favors the shorter tenure.
EMI Tables For 75 Lakh Loans
A 75 lakh (NPR 7,500,000) loan typically applies to a well-located flat in Kathmandu's established neighborhoods, a house in a premium area of Pokhara or another city, or a large construction project.
Table 6A: Monthly EMI For NPR 75 Lakh Loan
| Tenure | At 9% p.a. | At 10% p.a. | At 11% p.a. |
|---|---|---|---|
| 5 years | NPR 1,55,687 | NPR 1,59,352 | NPR 1,63,073 |
| 10 years | NPR 95,017 | NPR 99,113 | NPR 1,03,323 |
| 15 years | NPR 76,069 | NPR 80,597 | NPR 85,303 |
| 20 years | NPR 67,479 | NPR 72,376 | NPR 77,413 |
| 25 years | NPR 62,940 | NPR 68,154 | NPR 73,577 |
| 30 years | NPR 60,346 | NPR 65,881 | NPR 71,429 |
Table 6B: Total Interest Paid For NPR 75 Lakh Loan
| Tenure | At 9% p.a. | At 10% p.a. | At 11% p.a. |
|---|---|---|---|
| 10 years | NPR 39.02 lakh | NPR 43.94 lakh | NPR 48.99 lakh |
| 15 years | NPR 61.92 lakh | NPR 70.07 lakh | NPR 78.55 lakh |
| 20 years | NPR 86.95 lakh | NPR 98.70 lakh | NPR 1.11 crore |
| 25 years | NPR 1.14 crore | NPR 1.29 crore | NPR 1.46 crore |
| 30 years | NPR 1.42 crore | NPR 1.62 crore | NPR 1.81 crore |
At 75 lakh, the total interest burden over long tenures becomes very significant. A 75 lakh loan at 10% over 30 years costs NPR 1.62 crore in interest alone, on top of repaying the 75 lakh principal, total outflow is NPR 2.37 crore. The decision to reduce tenure from 30 years to 20 years saves NPR 64 lakh in interest (1.62 crore minus 98.70 lakh), at the cost of paying NPR 6,495 more per month (72,376 versus 65,881).
EMI Tables For 1 Crore Loans
A 1 crore (NPR 10,000,000) loan is now within NRB's updated guidelines, the monetary policy for FY 2082/83 raised the residential home loan ceiling from NPR 2 crore to NPR 3 crore, making larger loans more accessible. A 1 crore loan is relevant for premium property in Kathmandu Valley, large construction on family land, or significant renovation and extension projects.
Table 7A: Monthly EMI For NPR 1 Crore Loan
| Tenure | At 9% p.a. | At 10% p.a. | At 11% p.a. |
|---|---|---|---|
| 5 years | NPR 2,07,584 | NPR 2,12,470 | NPR 2,17,424 |
| 10 years | NPR 1,26,676 | NPR 1,32,151 | NPR 1,37,764 |
| 15 years | NPR 1,01,427 | NPR 1,07,461 | NPR 1,13,716 |
| 20 years | NPR 89,973 | NPR 96,502 | NPR 1,03,219 |
| 25 years | NPR 83,919 | NPR 90,870 | NPR 98,102 |
| 30 years | NPR 80,462 | NPR 87,757 | NPR 95,232 |
Table 7B: Total Interest Paid For NPR 1 Crore Loan
| Tenure | At 9% p.a. | At 10% p.a. | At 11% p.a. |
|---|---|---|---|
| 10 years | NPR 52.01 lakh | NPR 58.58 lakh | NPR 65.32 lakh |
| 15 years | NPR 82.57 lakh | NPR 93.43 lakh | NPR 1.05 crore |
| 20 years | NPR 1.16 crore | NPR 1.32 crore | NPR 1.48 crore |
| 25 years | NPR 1.52 crore | NPR 1.73 crore | NPR 1.94 crore |
| 30 years | NPR 1.90 crore | NPR 2.16 crore | NPR 2.43 crore |
The 30-year, 11% row is arresting: a 1 crore loan taken at 11% for 30 years results in total repayments of NPR 3.43 crore. You borrow 1 crore and pay back 3.43 crore. Interest alone costs 2.43 crore. This is the mathematical reality of long-tenure, high-rate borrowing, and it is why every percentage point of rate reduction and every year of tenure reduction matters enormously at this loan size.
At 9% versus 11% for a 1 crore loan over 20 years: the monthly EMI difference is NPR 13,246 (89,973 versus 1,03,219). Over 20 years, the total interest difference is NPR 31.43 lakh (1.16 crore versus 1.48 crore). A 2% rate reduction on a 1 crore loan is worth more than 31 lakh over 20 years. Spending time comparing banks to get a better rate is the highest-return financial activity a home buyer can do.
Total Interest Paid: The Number That Shocks Most Borrowers
Before taking any home loan, it is worth spending a moment looking at the total interest column, not just the monthly EMI column. Most borrowers focus on whether they can afford the monthly payment. The total interest, the actual cost of borrowing, often does not get the attention it deserves.
TABLE: TOTAL INTEREST AS A PERCENTAGE OF ORIGINAL LOAN (at 10% interest)
| Loan Amount | 10-Year Tenure | 20-Year Tenure | 30-Year Tenure |
|---|---|---|---|
| NPR 25 lakh | 58.6% | 131.6% | 216.0% |
| NPR 50 lakh | 58.6% | 131.6% | 216.0% |
| NPR 75 lakh | 58.6% | 131.6% | 216.0% |
| NPR 1 crore | 58.6% | 131.6% | 216.0% |
Note: The percentage is identical regardless of loan amount, it depends only on the interest rate and tenure.
What this table shows: at 10% for 20 years, you pay 131.6% of your loan amount in interest. For every NPR 100 you borrow, you pay back NPR 231.6 in total. For 30 years at 10%, you pay 216% of your loan in interest, for every NPR 100 borrowed, you pay back NPR 316.
This does not mean home loans are a bad idea. Real estate in Nepal has historically appreciated significantly, and owning property is often the right financial decision. But entering a 20 or 30-year loan with a clear understanding of the total cost makes you a much more deliberate borrower.
The Rate Vs Tenure Decision: What The Numbers Actually Show
The two variables you have the most control over are the interest rate (by choosing and negotiating with banks) and the tenure (by deciding how many years to take the loan for). Here is what the data actually shows about how much each one matters.
Impact Of Rate On A 50 Lakh, 20-Year Loan:
- At 8%: EMI = NPR 41,822 | Total interest = NPR 50.37 lakh
- At 9%: EMI = NPR 44,986 | Total interest = NPR 57.97 lakh
- At 10%: EMI = NPR 48,251 | Total interest = NPR 65.80 lakh
- At 11%: EMI = NPR 51,609 | Total interest = NPR 73.86 lakh
- At 12%: EMI = NPR 55,054 | Total interest = NPR 82.13 lakh
Moving from 12% to 8% on a 50 lakh loan over 20 years saves NPR 31.76 lakh in total interest. Even a single percentage point (say, from 10% to 9%) saves NPR 7.83 lakh over the loan life and reduces your monthly payment by NPR 3,265. Comparing banks and negotiating your premium is worth real money.
IMPACT OF TENURE ON A 50 LAKH, 10% LOAN:
- 10 years: EMI = NPR 66,075 | Total interest = NPR 29.29 lakh
- 15 years: EMI = NPR 53,731 | Total interest = NPR 46.72 lakh
- 20 years: EMI = NPR 48,251 | Total interest = NPR 65.80 lakh
- 25 years: EMI = NPR 45,436 | Total interest = NPR 86.31 lakh
- 30 years: EMI = NPR 43,920 | Total interest = NPR 1,08,11 lakh
The 10-year EMI is NPR 22,155 more per month than the 30-year EMI. But the 10-year borrower pays NPR 78.82 lakh less in total interest. If you can manage the higher monthly payment, the 10-year loan is dramatically better financially.
The practical middle ground for most Nepali families: take a 20-year loan (which keeps the monthly payment manageable) but make extra principal payments whenever income allows. This reduces your effective tenure without locking you into higher mandatory payments. Check your bank's prepayment policy, many allow this without penalty.
What NRB Changed In 2082/83 That Affects Your EMI
Nepal Rastra Bank's monetary policy for FY 2082/83 (announced in BS 2082) made two significant changes relevant to home loan EMI calculations.
First, NRB raised the residential home loan ceiling from NPR 2 crore to NPR 3 crore. This means banks can now legally lend up to NPR 3 crore for residential purposes, an increase that directly addresses rising property prices, particularly in Kathmandu Valley where many homes now exceed the previous NPR 2 crore ceiling. Buyers who previously could not finance their desired property through a bank loan may now qualify.
Second, the Loan-to-Value (LTV) ratio was confirmed as 80% for first-time home buyers and 70% for all other buyers. LTV is the maximum percentage of the property's assessed Fair Market Value (FMV) that the bank will lend. Understanding this changes your EMI calculation significantly.
Practical example: you want to buy a property assessed at NPR 1.5 crore.
- If you are a first-time buyer: bank lends up to 80% = NPR 1.2 crore. You need NPR 30 lakh as down payment.
- If you are buying a second property: bank lends up to 70% = NPR 1.05 crore. You need NPR 45 lakh as down payment.
The down payment amount directly affects your loan principal and therefore your EMI. A first-time buyer financing NPR 1.2 crore at 10% for 20 years pays NPR 1,15,802 per month. A second-time buyer financing NPR 1.05 crore at the same rate pays NPR 1,01,327 per month.
Note: The NRB sets the ceiling LTV ratio. Individual banks may apply lower LTV ratios based on property type, location, or borrower profile. Always confirm the applicable LTV with your specific bank.
The Hidden Costs Beyond Your Monthly EMI
The EMI tables above show your recurring monthly payment. But home loans in Nepal come with several one-time and ongoing costs that add to your total financial commitment. A complete picture includes all of these.
Processing Fee: Most banks charge 0.25% to 1% of the loan amount as a one-time processing fee. On a 50 lakh loan, this is NPR 12,500 to NPR 50,000 paid upfront at the time of loan approval. This fee is typically non-refundable even if the loan is later cancelled.
Property Valuation (Engineer's Report): The bank sends an approved engineer to assess the market value of the property. Their fee, which the borrower pays, typically ranges from NPR 5,000 to NPR 25,000 depending on property size and location.
CIB (Credit Information Bureau) Inquiry Fee: A nominal fee charged to check your credit history, typically NPR 500 to NPR 2,000.
Insurance Premium: Banks require you to insure the property against fire and earthquake damage, with the bank listed as the primary beneficiary. This annual premium depends on property value and the insurer but runs approximately 0.1% to 0.2% of the property's insured value per year. On a NPR 1 crore property this is NPR 10,000 to NPR 20,000 per year throughout the loan tenure.
Land Revenue Office (Malpot) Fees and Deed Writing: When the property is registered as loan collateral, deed writing charges and land revenue fees apply. These vary by property value and municipality.
Legal Documentation: Some banks charge legal documentation fees separately from processing fees.
Total upfront costs excluding down payment can range from NPR 30,000 to NPR 2,00,000 or more depending on loan size. Budget for these in addition to your down payment. The EMI calculator shows your monthly payment accurately; these one-time costs are separate.
How To Use The EMI Table To Reverse-Calculate What You Can Afford
Most people approach home loans by starting with a property and asking "how much will this cost per month?" A smarter approach is to start with your income and ask "how much EMI can I actually afford, and what loan does that support?"
Nepal's banks use a Debt-to-Income ratio (called FOIR, Fixed Obligation to Income Ratio) of approximately 40% to 50%. This means your total monthly EMI obligations across all loans should not exceed 40-50% of your monthly take-home income.
Working backwards from this:
If your monthly take-home salary is NPR 60,000: Available EMI capacity = 40% to 50% of 60,000 = NPR 24,000 to NPR 30,000. If you already have a vehicle loan EMI of NPR 12,000, your remaining home loan EMI capacity = NPR 12,000 to NPR 18,000.
At NPR 15,000/month available EMI and 10% interest for 20 years, the tables show:
- A 25 lakh loan has an EMI of NPR 24,126, too high.
- A 15 lakh loan at the same rate/tenure has an EMI of approximately NPR 14,476, just within range.
So for this income with an existing vehicle loan, a 15-lakh home loan is the realistic ceiling.
Run this calculation for your own situation: determine your available EMI capacity (income × 40% minus existing EMIs), then find the row in the relevant table where the monthly EMI matches your available capacity. That row shows the maximum loan amount and tenure combination you can realistically manage.
The Merokalam EMI Calculator at https://merokalam.com/emi-calculator-nepal/ lets you adjust loan amount, rate, and tenure interactively until you find the combination that fits your budget, much faster than working through tables manually.
One Decision That Can Save You NPR 10-30 Lakh Over Your Loan
There is one financial decision that dramatically affects how much your home loan actually costs, and most borrowers either do not make it deliberately or do not make it at all: early prepayment of principal.
Here is how it works. In the first years of any home loan, most of your monthly EMI goes to interest rather than principal. On a 50 lakh loan at 10% for 20 years, in the very first month: of your NPR 48,251 EMI, NPR 41,667 goes to interest and only NPR 6,584 reduces your principal. As the loan progresses, this balance gradually shifts, later in the loan, more goes to principal and less to interest.
When you make an extra payment directly against the principal (beyond your regular EMI), you reduce the outstanding balance on which interest is calculated for all future months. This creates a compounding saving: reducing principal by NPR 1 lakh early in a 10% loan saves you approximately NPR 10,000 per year in interest for every remaining year of the loan.
Practical example: On a 50 lakh, 10%, 20-year loan, making one extra NPR 5 lakh prepayment at the end of Year 3: Without prepayment: remaining 17 years of payments at NPR 48,251/month. With the prepayment: the remaining balance reduces significantly, and continuing the same EMI effectively shortens the loan by approximately 2.5 to 3 years. Total interest saving: approximately NPR 15 to NPR 20 lakh.
The key: check your bank's prepayment policy before signing. Some banks allow unlimited prepayment without penalty. Others charge a prepayment fee (typically 1-2% of the prepaid amount). For loans with a prepayment penalty, the fee must be weighed against the interest saving, in most cases the saving still outweighs the fee, but calculate it specifically for your loan.
Use the Merokalam EMI Calculator to model prepayment scenarios: recalculate your EMI after a hypothetical prepayment to see how much your monthly payment drops or how much the tenure shortens.
Final Thought: Calculate Before You Commit
Home loans in Nepal have become significantly more accessible over the past decade, with NRB's progressive policies expanding LTV ratios, raising loan ceilings, and keeping base rates at historically moderate levels. The dream of owning a home in Nepal is genuinely achievable for a wider range of families than at any previous point.
But a home loan is also the largest financial commitment most Nepali families ever make, potentially 20 to 30 years of monthly payments, with total outflows that can be two to three times the original loan amount. Going into that commitment with clear eyes about the actual numbers, not estimates, not vague figures, but the real monthly EMI and total interest for your specific loan amount and rate, is not optional. It is the minimum standard of financial literacy for this decision.
The tables in this article give you those real numbers for the most common loan sizes in Nepal. For any amount not in these tables, or to model different rate scenarios as you compare banks, the Merokalam EMI Calculator at https://merokalam.com/emi-calculator-nepal/ generates precise results in seconds.
Calculate your EMI before you walk into any bank. It puts you in the room as an informed borrower, not a surprised one.
EMI Calculator Nepal can help you take the next step
Use the tool directly when you want quick answers, clean calculations, or a practical workflow without extra setup.