Credit cards have grown in popularity in Nepal due to their convenience and increased acceptance of digital transactions. Here’s a thorough guide on credit cards and the EMI (Equivalent Monthly Installment) facility in Nepal:

Types of Credit Cards in Nepal

  • Standard Credit Cards: These are basic credit cards with a standard set of features and advantages that are appropriate for everyday transactions.
  • Premium Credit Cards: These cards offer additional benefits such as increased credit limits, reward points, travel insurance, and access to airport lounges.
  • Co-branded credit cards: Issued in collaboration with retail stores, airlines, or other service providers, these cards provide exclusive rewards and discounts for the partner brands.
  • Corporate Credit Cards: Designed for corporations and sometimes come with larger credit limits and specialised services to help them manage their spending.

Major Banks Offering Credit Cards in Nepal

  • Nepal Investment Bank Limited (NIBL)
  • Standard Chartered Bank Nepal
  • Nabil Bank
  • Himalayan Bank
  • NIC Asia Bank
  • Siddhartha Bank

Features & Benefits

  • Reward Points: With each transaction, you earn points that you may redeem for a variety of benefits.
  • Cash Back: Some cards provide cashback in certain areas such as groceries, restaurants, and petrol.
  • Debt Transfer: Transfer your outstanding debt from one credit card to another with a reduced interest rate.
  • EMI Conversion: It converts high-value purchases into manageable monthly installments.
  • Travel Benefits: It include access to airport lounges, travel insurance, and flight booking savings.
  • Fuel Surcharge Waiver: Some cards waive the fuel surcharge for petrol and diesel transactions.

EMI Facility in Nepal

The EMI service enables credit cards to divide large expenditures into manageable monthly installments. Here’s how things work in Nepal:


  • Eligible Purchases: Generally, purchases over a particular value (for example, NPR 5,000) are eligible for conversion into EMI.
  • Cardholder Requirements: The cardholder must have a strong credit history and a minimum transaction amount determined by the bank.


  • Purchase: Make a purchase using your credit card at an eligible merchant.
  • Conversion Request: To request EMI conversion, contact your bank or use online banking/mobile apps.
  • Approval: The bank approves the conversion depending on the qualifying requirements.
  • Installments: The purchase price is divided into equal monthly installments (EMIs) over a certain time period (usually 3, 6, 9, 12, 18, or 24 months).

Interest Rates and Charges

  • Interest Rates: The interest rate for EMI varies by bank but is typically lower than the usual credit card interest rate.
  • Processing Fee: A small processing fee may be imposed when turning transactions into EMIs.
  • Prepayment Fees: Some banks may impose a fee if you intend to pay off the remaining EMI amount before the end of the term.

Benefits of the EMI Facility

  • Affordability: Spread the cost of significant purchases over multiple months.
  • Flexibility: Select a repayment period that fits your financial condition.
  • No Down Payment: You can take immediate ownership of the purchased item without making a down payment.

Things to Consider

  • Interest Rates: Before converting to an EMI, compare rates and charges from different institutions.
  • Repayment Capacity: Make sure you can easily afford the EMI amount each month without straining your finances.
  • Hidden Charges: Be aware of any additional costs or fees linked with the EMI facility.

Credit cards and EMIs in Nepal provide a straightforward way to manage finances and make significant purchases more affordable. Understanding the features, benefits, and potential charges allows you to make informed decisions and effectively use these financial instruments.