The Employees Provident Fund has rolled out a new vehicle loan scheme for its contributors, opening a formal route to finance two-wheelers and four-wheelers under updated regulations effective from July 17, 2026. The fund says the scheme is meant to ease vehicle financing and encourage wider use of electric vehicles in Nepal.
Loan limits and vehicle types
Under the new rules, contributors can borrow up to Rs 45 lakh or 70% of the purchase price for a new electric vehicle, whichever figure is lower. For petrol or diesel vehicles, the maximum is Rs 40 lakh or 70% of the purchase price, again capped at the lower amount.
The scheme applies to both new and used vehicles. For new units, the vehicle itself and the contributor’s EPF savings will serve as collateral. For used vehicles, borrowers must also pledge land or property as additional security.
Rules for used vehicles
The EPF has set a clear age bar for second-hand four-wheelers. A used car must be less than five years old from the date it was first sold by an authorized dealer.
On used vehicles, the loan amount is limited to 60% of the lower value between the depreciated value and the vehicle’s technical valuation. That figure determines how much financing a contributor can get.
Repayment tenure depends on the age of the vehicle. New vehicle loans can run for up to seven years. Used vehicle loans must be settled within five years.
Borrowers are allowed to clear the loan early if they wish.
Who can apply
To qualify, a contributor must have been making regular EPF deposits for at least three years and must have at least six months of service left before retirement. The monthly installment cannot cross 80% of the self-declared combined monthly income of the contributor and spouse.
Applicants have to submit the prescribed form, updated KYC details, a certified copy of citizenship, a recommendation letter from the office head, and other documents listed in the regulations.
For Nepali vehicle buyers, the key point is that EPF savings can now be used more directly for vehicle purchase. Better borrowing terms for EVs apply than for fuel-powered models.
Reported by the Nepal AutoMart news desk. Prices verified against Nepal AutoMart's own distributor-sourced data.
