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EMI Calculator Nepal: The Ultimate Guide to Loan Planning and Budgeting

EMI Calculator
EMI Calculator

EMI Calculator

InputValue

Monthly Payment (EMI): NPR 0

To take advantage of any retail loans provided by lending organizations, you must pay an EMI or equated monthly installment. However, it might be challenging to calculate how much you can truly spend.

Borrowers may use an EMI calculator to estimate their monthly loan payments based on the loan’s principal, interest rate, term, and other variables. In this article, we’ll learn about EMI calculators in further detail, explaining how they work and why they’re essential for making wise financial decisions.

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What is an EMI (Equated Monthly Installment )?

Equated monthly installments (EMIs) are set payments made by a borrower to a lender on a particular day each month. To pay off the loan in full over a certain number of years, equal monthly installments are applied to the principal and interest each month. The borrower pays regular monthly payments to the lender over several years to pay off the loan in the most popular loan forms, including mortgages on real estate, vehicle loans, and school loans.

How is EMI Calculated?

EMI may be calculated using either the flat-rate technique or the reducing-balance (or reduce-balance) method. Both incorporate the loan principal, loan interest rate, and loan duration into their computations.

Equated Monthly Installment (EMI) Formula

EMI=  P x R x (1+R)^N / [(1+R)^N-1] 

Where:

EMI = Equated Monthly Installment

P = Principal Loan Amount (the amount you borrow)

R = Monthly Interest Rate (annual interest rate / 12 months /100)

N = Loan Tenure (number of monthly installments)

Example: Suppose you’re planning to take a home loan of NPR 2,000,000 with an annual interest rate of 10.5%, and you want to repay it over 5 years (60 months).

First, convert the annual interest rate to a monthly rate by dividing it by 12 and dividing it by 100 to convert it from a percentage to a decimal value.

R = (10.5 / 100) / 12 = 0.00875

P = NPR 2,000,000

N = 60 (since you’re replaying it over 5 years)

Now, you have all the values needed for the calculation, Using the formula

EMI= P x R x (1+R)^N / [(1+R)^N-1] 

We get,

EMI = [2,000,000 x 0.00875 x (1 + 0.00875)^60] / [(1 + 0.00875)^60 – 1]

EMI ≈ [2,000,000 x 0.00875 x (1.00875)^60] / [(1.00875)^60 – 1]

EMI ≈ [2,000,000 x 0.00875 x 1.644238] / 1.644238 – 1]

EMI ≈ [28,284.76] / 0.644238

EMI ≈ NPR 43,997.54 (rounded to the nearest rupee)

So, in this example, the EMI for a home loan of NPR 2,000,000 at an annual interest rate of 10.5%, with a tenure of 60 months, would be approximately NPR 43,998 per month.

What is an EMI Calculator?

A financial tool that makes it easier to figure out your monthly installment payments is the EMI calculator. An EMI calculator may help you determine how much you will need to pay each month whether you are taking out a personal loan, auto loan, or house loan. Budgeting is made simpler as a result, and you may evaluate different loan offers from different financial institutions in Nepal.

How Does EMI cal work?

EMI calculators commonly need three essential pieces of information:

  • Loan Amount: The total amount you plan to borrow.
  • Interest Rate: The annual interest rate offered by the lender.
  • Loan Tenure: The number of months or years over which you plan to repay the loan.

Once you input these details, the EMI calculator performs a complex mathematical formula to give you the exact EMI amount you’ll need to pay each month. It considers both the principal amount (the original loan amount) and the interest accrued over the repayment period.

Why use an EMI calculator?

  • Financial Planning: Effective financial planning is made possible with EMI calculators. To see how changing the loan amount, term, or interest rate impacts your monthly EMI, make the necessary changes. This enables you to select a loan choice that matches your spending limit.
  •  Comparisons: With so many financial institutions in Nepal offering loans, comparing loan offers from several banks or lenders is made easy with the use of an EMI calculator. This guarantees that you receive the best possible deal.
  • Transparency: EMI calculators provide you with full disclosure of the cost of borrowing. You can see how much of each EMI payment is used to interest and how much is applied to the principle.
  • Making Quick Judgments: You may make well-informed judgments without wasting time by swiftly calculating EMIs for various scenarios.
  • Avoiding Financial Stress: By improving your financial management and lowering your chance of loan default, knowing your monthly EMI may help you avoid financial stress.

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FAQs:

How is my EMI calculated?

The formula to calculate EMI is P x R x (1+R)^N / [(1+R)^N-1] – where, “P” is the principal loan amount, “N” in tenure in months, and “R” is the prevailing interest rate.

Is EMI interest monthly or yearly?

The rate of interest will be taken as a monthly rate as EMIs are paid monthly. Therefore, if the interest rate is 10%, you need to divide it by 12. Also, the tenure will be the number of months. So, if your loan tenure is 20 years, the tenure will be 20×12 = 240 months.

Is EMI good or bad?

Although a good EMI scheme is easy on your wallet, you must try to avoid it as the first option. You may not only be spending more than the actual worth of the product but also splurging first and then relying on EMI payments is not healthy for your finances.

Is EMI better than a loan?

EMI is inherently neither good nor bad. EMI provides you with the convenience of repaying the loan in comfortable and easy installments. However, you cannot ignore the fact that through EMIs, you are paying more than you borrowed. The costs such as interest and processing fees are added to it.

Is EMI costly?

EMI cost depends on the loan amount, interest rate, and tenure. Higher loan amounts and longer tenures result in lower monthly EMIs but potentially higher overall interest payments, making it costlier in the long run.

Conclusion:

EMI calculators are essential tools for anybody thinking about taking out a loan in Nepal. They enable borrowers to manage their budgets, make wise financial decisions, and select the loan option that best meets their requirements. Understanding and employing an EMI calculator will help you realize your financial goals while maintaining your financial security, whether purchasing a home, a car, or any other item. Use an EMI calculator to help you navigate your financial trip the next time you set out on one.

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Empowering Green Mobility: Locating EV Charge Stations Across Nepal

EV Charge Stations

EV Charge StationsNepal has come a long way toward implementing sustainable and eco-friendly transportation systems in the previous several years. One of the most amazing developments in this area is the rapid national distribution of electric vehicle (EV) charging stations. By creating a solid electric vehicle (EV) network, Nepal is undoubtedly making a contribution to the worldwide drive toward a greener future.

The utilization of electric vehicles is still relatively new in Nepal. 1% of the population in Nepal is currently thought to utilize an electric scooter, despite the fact that the number of electric vehicles in the country is not known with confidence. This number is expected to increase significantly over the next few years as the government has set a target of making Nepal a fully electric vehicle nation by the end of the current year.

Types of Electric Vehicle(EV) Charger 

Nepal has seen a significant rise in the number of EV charging stations over the past several years. These stations fall into one of three categories:

  • Slow Charger
  • Fast Charger
  • Rapid Charger
TypeCharging WattCharging TimeBattery %
Slow Chargers3kw12 hr 0-100%
Slow Chargers7kw6-8 hr 0-100%
Fast Chargers22kw3 hr 0-100%
Rapid Charger50kw40 min 0-80%
Ultra-Rapid Charger350kw20 min 0-80%

Slow Chargers

You may often find these chargers in homes and offices. Although they have a reduced charging capacity, they are practical for charging at night so that the battery is fully charged in the morning.

  • Home Electric Socket(3kW): Typically it takes 12 hours to fully recharge a battery from zero.
  • Home EV Charger(7kW): Typically it takes 6-8 hours to fully recharge a battery from zero. 

Fast Chargers

Fast chargers offer substantially quicker charging speeds than slow chargers and are frequently found in business areas, shopping centers, and motorways. They are perfect for an afternoon fast top-up.

  • Fast Charger(22kW): Typically it takes 3 hours to fully recharge a battery from zero.

Rapid Chargers

Rapid chargers are judiciously positioned along key thoroughfares. They provide ultra-fast charging, enabling EV owners to swiftly refuel their cars while on lengthy trips.

  • Rapid Charger(50kW): Typically it takes 40 mins to charge 80% of the battery and after that to charge the remaining 20%, the charging speed is slowed down in order to protect the battery life.
  • Ultra-Rapid Charger(350kW): Typically it takes 20 mins to charge 80% of the battery and after that to charge the remaining 20%, the charging speed is slowed down in order to protect the battery life.

List of Electric Car Charger Locations in Nepal

Charging PointLocationContact Number
Thapathali EV showroomThapathali01-5911553/5911554/5911556
Orchid Moto CorpBirgunj091-523714/524492
LI Quick ServiceTinkune01-4111891/4111892
LI ServiceKupondole01-5420037/5450380/5550380
LI ServiceDhapasi01-4355430/4355431
LI ServiceBhaktapur01-5970226/6635266
Labim MallPulchowk, Lalitpur01-5529924
New Shiv ServiceSinamangal01-4474511/4474512/4474513
Hyundai SalesNaxal01-5911556/5911457/5911558
Laxmi Bank Head OfficeKathmandu-Hattisar01-4544684
Hyundai SalesThapathali01-5911553/5911554/5911556
Hotel DevoteeDhangadhi091-521618
Hotel PauwaBhalubhang071-570305
Pinnacle ServiceBasanta Chowk, Bharatpur056-526276
Royal Century HotelBharatpur056-525865
Barahi Jungle LodgeBharatpur, Meghauli West9851331247
Siddhartha ResortChisapani091-414000
Dinesh 4 WheelsDhangadi091-523714/524492
Siddhartha HotelNepalgunj081-551200
Him IntercontinentalNepalgunj081-550427/081-550428/081-550429
New Rider AutoworldDang082-562602
Siddhi Vinayak ServiceButwal071-415275
Hotel Da FlamingoButwal071-420152
Jagat MotorBhairahawa071-575428/071-575429
Bodhi Red SunBhairahawa071-525957
KC's Restaurant & HomeSauraha985-5015309
Hotel NepalirikaBiratchowk021-545212
Hotel KingsburyBirtamode023-509700
Akchyat ResortMulkot9851045480
Hotel VishwaBirgunj051-591055
Orchids Moto CorpBirgunj091-523714/524492
Hetauda WheelsHetauda057-520200
Avocado & Orchids ResortHetauda057-520235
Royal Auto WorldBiratnagar021-460609
Pathivara Auto LinkItahari025-587502
Alliance MotorsBirtamode023-541495
Barahi Service CenterPokhara061-524336
Bindiya Service CenterPokhara061-530436
Water Front ResortPokhara061-420004
Hotel BarahiPokhara061-460617
Kurintar RetreatKurintar-Darechowk9851340153
Hotel Soaltee WestendItahari-Koshi Highway025-587502
Hotel NepalirikaDamak- E-W Highway9717216222

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Why Fast EV Charging Stations are important?

In Nepal, EV charging stations are essential for advancing public health, enhancing energy security, fostering economic growth, and so on. The importance of EV charging stations is listed below:

  • Air Quality Improvement: EV charging stations promote zero-emission electric cars, reducing air pollution and addressing health issues associated with poor air quality in metropolitan settings.
  • Energy Security: As Nepal moves toward electric transportation, its reliance on imported fossil fuels decreases, boosting energy security and stability.
  • Economic Growth: By generating jobs and promoting entrepreneurship, the EV charging sector promotes economic growth and aids in the advancement of the nation’s economy.
  • Sustainable Tourism: Charging stations help promote sustainable tourism by accommodating eco-aware visitors who drive electric cars, supporting Nepal’s commitment to environmental protection.
  • Global Environmental Commitments: Nepal has shown its commitment to tackling climate change by adopting EVs and clean charging that are in line with international accords like the Paris Agreement.

Is the future of Electric Vehicles(EVs) good in Nepal?

Electric vehicles (EVs) have a bright future in Nepal If charging stations are easily available in different locations. EVs are becoming a feasible choice as Nepal struggles with air pollution problems and looks for sustainable transportation options. As a result of its abundance of water resources, Nepal is known to have a great potential for electricity production. We may expect more Nepali customers to transition to electric mobility since the Nepali government is diligently working to enhance the number of charging stations. 

The advantages are obvious: lower emissions, lower costs, and less reliance on imported fossil fuels. We can imagine a day when EVs are often seen on Nepal’s roadways if the charger network keeps expanding, even into remote regions, and if renewable energy integration increases. However, ongoing government backing and increased public knowledge of the benefits of electric cars in terms of the environment and the economy will also be necessary for EVs to succeed in Nepal.

What are the benefits of EV Charge Stations?

  • Enhanced Convenience: With more EV charging stations available, it is easier for owners of electric vehicles to find a location where the battery of their vehicle may be charged.
  • Time Efficiency: Charging stations provide quicker charging periods than home charging, which occasionally requires an 8-hour level 2 charger. In less than 30 minutes, certain rapid chargers may restore up to 80% of the battery’s capacity.
  • Fuel Cost Savings: While it is well known that electric vehicles (EVs) are fuel-efficient, the increased accessibility of charging stations increases these savings and gives EV owners an even more affordable mode of transportation.

FAQs:

How long does an electric car battery last?

The lifespan of an electric car battery typically ranges from 8 to 15 years, depending on factors like usage, charging habits, and the vehicle's make and model.

How do I charge my EV at home?

To charge your EV at home, you'll need a home charging station or a dedicated electrical outlet, often installed by a professional electrician. Plug your EV into the station or outlet using the provided charging cable.

What is the app for EV charging stations in Nepal?

EZ (Easy) is the app for EV charging stations in Nepal.

How to open an EV charging station in Nepal?

The persons or institutions that plan to invest in charging infrastructure must obtain a permit from the Nepal Electricity Authority while no licenses will be required for setting up a household charging system unless the household consumption goes beyond an approved load level.

What is electric vehicle charging station?

An electric vehicle charging station is a place where electric cars recharge their batteries. It's like a gas station for electric vehicles. There are different types, but they all provide the electricity needed to power up an electric car.

Conclusion

In Nepal, the use of EV charging stations goes well beyond simple practicality; it is a revolutionary force guiding the country toward a more sustainable and affluent future. EV charging stations are playing a crucial role in determining Nepal’s course toward sustainability by reducing air pollution, enhancing energy security, fostering economic growth, and adhering to international environmental commitments. These charging stations serve as more than simply electric car power outlets; they also serve as an inspiration for a Nepal that is healthier, more sustainable, and flexible.

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News Finance

Maximize Your Investment With Lump Sum Calculator: Plan Your Investments Wisely

Lumpsum Calculator
Lump Sum Calculator

Lump Sum Calculator

InputValue

In finance and investment, the term “lump sum” refers to a single, large sum of money that is either invested or received at once. For many people in Nepal, understanding how to calculate the potential returns on a lump sum investment is essential. To learn more about lump sum calculators and how to use them to analyze Nepal’s financial status, you may use this blog post as a reference.

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What is a Lump Sum Calculator?

A lump sum calculator is a tool used in finance to estimate the worth of a one-time investment in the future. This calculator takes into account several factors, including the initial investment amount, the expected rate of return, and the duration of the investment, to forecast the future value of your investment. 

What is a Lump Sum Investment?

Lump sum investing, also referred to as one-time investing, is a type of investing where you make a single investment and then wait a certain amount of time to watch your money increase through compound interest.

Formula to Calculate Lump Sum Investment

Lump sum Calculators operate on the future value principle. You may use the lump sum calculator to determine the future worth of your investment at a specific interest rate. The following equation must be used:

FV = PV (1+r) ^n

Where:

  • FV= Future Value.
  • PV= Present Value or initial principal amount.
  • r= rate of interest.
  • n= no compounding periods.

If the interest is compounded more frequently than annually, you’ll need to adjust the formula accordingly. The adjusted formula for compound interest compounded m times per year is:

FV = PV × [1+(r/m)] ^m×n

Where:

  • m is the number of times interest is compounded per year.

Conversely, if you’re calculating the present value (PV) based on a future value (FV), you can rearrange the formula as follows:

PV = FV / (1+r) ^n

And for compounding more frequently:

PV= FV / [1+(r/m)] ^m*n

These formulas help you calculate the future or present value of a lump sum investment based on an interest rate over a specified period.

Example:

Suppose you have a lump sum of Rs 2,00000 that you want to invest at an annual interest rate of 6% for 5 years. Using the formula:

FV= 2, 00000×(1+0.06)^5

By calculating this;

FV= 2,00000( 1.06)^5

FV= 2,00000*1.338225

After five years, your Rs 2,00000 lump sum investment would be worth around Rs 267645. According to the specified interest rate and period, this shows the potential increase of your initial investment.

How does a lump sum calculator work?

Three key inputs are required for a lump sum calculator to work:

  • The initial investment amount
  • The estimated rate of return (or interest rate)
  • The investment period (in years or months)

The future value of the lump sum investment based on the compound interest calculation is then computed and projected using these inputs. The calculator takes into account how interest compounds over time, allowing you to see how your lump sum may increase under various conditions and rates of return. This aids in the planning of your investment objectives and the making of knowledgeable financial decisions.

Advantages of using a lump sum calculator

Anyone wishing to make a one-time investment might benefit from using a lump sum calculator. The advantages of using a lump sum calculator include:

  • Offers a precise financial forecast of your one-time investment.
  • Makes it easier for you to make wise investing decisions.
  • Allows you to specify financial objectives.
  • With the scenario exploration feature, you may alter the inputs for various investing situations.
  • It makes contrasting various investment alternatives simple.
  • Supports the creation of financial milestone plans.
  • Aids in evaluating and visualizing investment risks.

Limitations of Lump Sum Calculator?

  • Tendency to spend carelessly and impulsively.
  • If the money is removed, there might be a loss of investment gains.
  • A possible tax obligation that lowers the net sum.
  • If inflation is not adequately controlled, buying power will gradually decline.
  • Lack of a guaranteed revenue source, as opposed to periodic payments.
  • Anxiety or tension, especially for people who aren’t used to handling significant quantities of money.

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FAQs:

Is lump sum compounded?

Lumpsum investment or one-time investment is a style of investment in which you invest once (lumpsum) and allow your invested money to generate compounding returns over a given time frame.

Is a lump sum risky?

If not handled carefully, a lump amount might be problematic since it lacks the benefits of dollar-cost averaging that come with regular investments, possibly exposing you to timing and market volatility risks. These risks can be reduced through diversification and a well-thought-out investment plan.

Is lump sum a good idea?

Lump sum payments provide you with more financial freedom since they give you the freedom to spend or invest your money in whatever you see appropriate.

Is a lump sum better than a pension?

With a monthly pension payment, you receive a set sum each month for the rest of your life, so you don't have to be concerned about stock market fluctuations. A lump sum distribution, on the other hand, might provide you the freedom to decide where to invest or save your money as well as when and how much to take.

What is the maximum amount of lump sum?

There is no upper limit to the lump sum amount you can invest.

Conclusion:

A lump sum calculator may be a useful tool for both inexperienced and experienced investors, where careful financial preparation is important. You may use this tool to create reasonable financial objectives, make educated investment selections, and make sure your money is working for you. Understanding how to utilize a lump sum calculator is an essential first step towards safeguarding your financial future, regardless of whether you are planning for retirement, school, or any other financial objective.

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News

Breaking: 10 Nepali Students Dead in Israel Conflict – Latest Updates on Tragic Israel-Palestine War

In the Israel-Palestine war, the death of 10 Nepali citizens has been confirmed in a Hamas attack in Israel. Nepali Ambassador to Israel, Kanta Rajal, confirmed the deaths resulting from the attack on an oil facility in Israel.

The dead individuals were Nepali students who had gone there for studies. According to Nepali people residing in Israel, the incident occurred after a bomb exploded in the area where they were staying in Israel. However, the Ministry of Foreign Affairs has not provided information about this incident.

Among those who lost their lives are Narayan Prasad Neupane from Kailali Ghodaghodi-4, Ganesh Kumar Nepali from Bajhang Jay Prithvi-6, Ashish Chaudhary from Kailali Bauniya-3, Dipesh Raj Bista from Darchula Lekam-5, Anand Shah from Dhanusha Saptari-6, Rajesh Kumar Sarvankar from Sunsari Madhuban, Rajan Phulara from Doti Pachanali-3, Padam Thapa from Lamikhal-8, Pravesh Bhandari from Salyan Sharda-3, and Lokendra Singh Dhami from Darchula.

The embassy has been informed about this tragic incident, where six individuals are undergoing treatment, while one remains uncontacted.

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Unveiling Best Microfinance in Nepal (Updated)

Microfinance in nepal

Microfinance in nepal

Microfinance in Nepal serves low-income persons by providing smaller loans with flexible terms. On the other hand, traditional Banks in Nepal offer broader financial services to diversified customers with tighter restrictions. Microfinance in Nepal is rated as a D-Class financial institution by the Central Bank of Nepal.

As non-governmental organizations (NGOs) started experimenting with small-scale financial services in rural areas, the early 1980s witnessed the modest beginnings of Nepal’s microfinance company. The poor and excluded citizens of the country were to be lifted out of poverty and provided access to financial inclusion.

As the concept acquired acceptance and a positive reputation on a worldwide scale in the middle of the 1990s, Nepal’s government began to regulate microfinance organizations (MFIs). The outcome was a more organized sector, which let MFIs operate more effectively and serve more people.

List of Top Microfinance in Nepal

 

Top Microfinance in Nepal based on the market cap with their Head Office.

S.NMicrofinance CompanySymbolHead OfficeCapital in Billion
1Chhimek Laghubitta Bittiya Sanstha Ltd.CBBLOld Baneshwor, Kathmandu27.95
2Nirdhan Utthan Laghubitta Bittiya Sanstha LtdNUBLNaxal, Kathmandu19.17
3Jeevan Bikash Laghubitta Bittiya Sanstha LimitedJBLBKatahari, Morang19.15
4Forward Microfinance Bittiya Sanstha Ltd.FOWADDuhabi Bhaluwa, Sunsari14.14
5NIC Asia Laghubitta Bittiya Sanstha Ltd.NICLBSLBanepa, Kavrepalanchowk12.51
6Deprosc Laghubitta Bittiya Sanstha Ltd.DDBLBharatpur, Chitwan12.43
7Swabalamban Laghubitta Bittiya Sanstha Ltd.SWBBLKamal Pokhari, Kathmandu10.93
8Meromicrofinance Laghubitta Bittiya Sanatha Ltd.MEROBattar, Nuwakot8.63
9First Microfinance Laghubitta Bittiya Sanstha Ltd.FMDBLGyaneshwor, Kathmandu8.15
10Suryodaya Womi Laghubitta Bittiya Sanstha Ltd.SWMFBanepa, Kavre6.69

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Roles of Microfinance

Microfinance has a substantial and varied role in Nepal, where it is vital to tackling the nation’s many socioeconomic problems and promoting financial inclusion. The following are some of the primary roles that microfinance in Nepal plays:

  • Microfinance aids in the alleviation of poverty by offering small loans for businesses that generate income.
  • Financial inclusion improves credit access and savings by extending financial services to undeveloped areas.
  • Microfinance aids in women’s economic and social independence by giving them access to loans and training.
  • In order to help agriculture, livestock, and rural businesses, it encourages rural development.
  • Small-business financing provided by microfinance helps entrepreneurship.
  • Infrastructure, medical care, and education are all financed through community development.
  • Microfinance offers short-term loans and aid for reconstruction to speed up the aftermath of a catastrophe.
  • Financial education shows customers how to handle their finances so they may choose wisely.
  • A few programs offer health financing, making it possible to use healthcare services.
  • Challenges of Microfinance Companies in Nepal

While microfinance has significantly improved Nepal, there are still challenges that must be overcome. The challenges of Microfinance in Nepal are listed below:

  • Seasonal Migration: Microfinance institutions face uncertainty due to the seasonal migration of rural inhabitants to urban areas in search of jobs because these people frequently only remain temporarily in the regions where they provide services.
  • Political Ignorance: Some political figures don’t have a basic grasp of microfinance and see it as charity. Demands for debt forgiveness and reduced interest rates may result from this, endangering the viability of microfinance initiatives.
  • Exclusion of Vulnerable Groups: Even in areas with a substantial microfinance presence, vulnerable populations such as the severely poor, Dalits, Janajatis, and needy persons are frequently excluded from current microfinance projects. For these communities, inclusivity is crucial.
  • Financial Discipline Can Be Disrupted: The microfinance industry’s financial discipline and standards can be disturbed by highly subsidized microcredit programs.
  • Resources Limited: Financial institutions must provide microfinance organizations a share of their transactions, according to the National Reserve Bank (NRB). There is a problem since resources are scarce when microfinance is extended to isolated and neglected areas.
  • Lack of Information: The competency of the human resources and operational expertise of banking and microfinance organizations is a major determinant of their effectiveness. These institutions are now having trouble operating efficiently due to a lack of knowledge and experience among the current staff.

FAQs:

What is micro finance in Nepal?

Microfinance institutions, both formal and informal, provide financial services which help in creating self-employment and income opportunities among the poor.

What is the difference between a bank loan and a microfinance loan?

A microfinance institution offers loans with little to no assets to the clients while in a bank one has to have collateral to receive a loan.

What is the goal of microfinance?

Microfinance aims to improve financial services access for marginalized groups, especially women and the rural poor, to promote self-sufficiency.

What is another name for a microfinance bank?

Microfinance, also called microcredit, is a type of banking service provided to low-income individuals or groups who otherwise wouldn't have access to financial services.

Is microfinance interest free?

Some of the countries where interest free microfinance has gained popularity include Pakistan, India, Bangladesh, Bosnia, and Herzegovina and some African countries. Interest free microfinance provides a good alternative to conventional microfinance by providing collateral free and interest free loans to the lender.

Which is the best microfinance to invest in nepal?

Chhimek Laghubitta Bittiya Sanstha Ltd., Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd are some of the best microfinance to invest in Nepal based on their market capitalization and past performance.

Conclusion:

 

Microfinance remains an important factor in promoting financial stability, financial independence, and community development as Nepal expands and develops, helping to ensure the country has a more promising and successful future.

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News Finance

Exploring list of banks in Nepal: Your Comprehensive List for Financial Services [ Updated – December 2023 ]

list of banks in Nepal

list of banks in Nepal: Nepal is home to a wide variety of banks and financial institutions to meet the financial demands of its inhabitants and enterprises, each of which provides a special set of services. Institutions like banks are crucial in contemporary economies. They support financial security, economic expansion, and the smooth operation of the financial markets. 

The early 20th century is when Nepal’s financial history began. In 1937 AD (1994 BS), Nepal Bank Limited, the nation’s first bank, was founded. However, the banking industry only really started to take off until the economy was liberalized in the 1950s. The establishment of several financial institutions during this period laid the groundwork for the current, booming banking industry.

List of Banks in Nepal

In Nepal, banks are categorized into four types based on their operational functions and the overall value of the bank.  Factors such as size, services offered, and financial standing are also looked at while categorizing banks.

  1. Class ‘A’ Banks: Commercial Bank
  2. Class ‘B’ Banks: Development Bank
  3. Class ‘C’ Banks: Finance companies
  4. Class ‘D’ Banks: Micro Finance Financial Institutions

What is a Commercial Bank?

Commercial Banks are also known as A-Class Banks, which are rated by the Central Bank of Nepal i.e. Nepal Rastra Bank. The most typical bank in Nepal is a commercial bank. Among the many services, they provide loans, fixed deposits, foreign exchange services, savings, and current accounts. Standard Chartered Bank Nepal, Himalayan Bank Limited, and Nepal Investment Bank Limited are a few of the well-known commercial banks in Nepal.

According to the latest data of 24 February 2023, there are 20 Commercial Banks in Nepal. Their execution is on the National level.

List of Commercial Banks in Nepal

 

Bank Name Establishment Year Headquarters Paid-up Capital (in NPR)
Agriculture Development Bank1968Ramshahpath, Kathmanduरु 18.88 Arab
Nepal Bank1937Dharmapath, Kathmanduरु 14.69 Arab
Rastriya Banijya Bank1966Singhadurbarplaza, Kathmanduरु 14.64 Arab
Citizens Bank International2007Narayanhitipath, Kathmanduरु 14.20 Arab
Everest Bank1994Lazimpat, Kathmanduरु 10.70 Arab
Global IME Bank2023Kamaladi, Kathmanduरु 35.77 Arab
Himalayan Bank1993Kamaladi, Kathmanduरु 21.66 Arab
Kumari Bank2023Durbarmarg, Kathmanduरु 26.23 Arab
Laxmi Sunrise Bank2023Hattisar, Kathmanduरु 21.67 Arab
Machhapuchhre Bank2012Lazimpat, Kathmanduरु 10.26 Arab

What is the Development Bank?

Development Banks are also known as B-Class Banks, which are rated by the Central Bank of Nepal i.e. Nepal Rastra Bank. In Nepal, development banks are primarily concerned with providing funding to various industries, including agriculture, tourism, and small and medium-sized businesses (SMEs). 

According to the latest data of January 2023, there are 17 Development Banks in Nepal. Their execution is both on the National level and District level. Development Banks are categorized on the following basis:

  • National Level Development Banks have a minimum Paid-up Capital of  2,500,000,000 and execute at the National Level.
  • District Level Development Banks that execute in 4-10 districts have a minimum Paid-up Capital of  1,200,000,000.
  • District Level Development Banks that execute in a maximum of 3 districts have a minimum Paid-up Capital of 500,000,000.

List of  Development Banks in Nepal

S.NBank NameHeadquartersPaid-up Capital (in NPR)
1Muktinath Bikash BankKamaladi, Kathmanduरु 6.43 Arab
2Garima Bikas BankLazimpat, Kathmanduरु 5.19 Arab
3Mahalaxmi Development BankDurbar Marg, Kathmanduरु 4.17 Arab
4Jyoti Bikas BankKamaladi, Kathmanduरु 4.40 Arab
5Shine Resunga Development BankButwal, Lumbiniरु 4.28 Arab
6Lumbini Bikas BankDillibazaar, Kathmanduरु 3.38 Arab
7Sangrila Development BankBaluwatar, Kathmanduरु 3.01 Arab
8Kamana Sewa Bikas BankGyaneshwor, Kathmanduरु 3.14 Arab
9Saptakoshi Development BankDhankuta, Koshiरु 0.83 Arab
10Excel Development BankBirtamod, Koshiरु 1.25 Arab
11Miteri Development BankDharan, Koshiरु 1.02 Arab
12Narayani Development BankRatnanagar, Bagmatiरु 0.26 Arab
13Salapa Bikash BankDiktel, Koshiरु 0.35 Arab
14Sindhu Bikas BankBarhabise, Bagmatiरु 0.56 Arab
15Green Development BankPokhara, Gandakiरु 0.52 Arab
16Corporate Development BankBirgunj, Madheshरु 0.50 Arab
17Karnali Development BankNepalgunj, Lumbiniरु 0.50 Arab

What are Micro Finance (सूक्ष्म वित्त) Companies?

Micro Finance Companies are those financial institutions that are rated as D-Class Banks, by the Nepal Rastra Bank. Small finance companies don’t need a lot of money compared to big ones. Even if they have more than the smallest amount required, they can’t become bigger financial institutions or banks.

As of January 2023, there are 57 microfinance companies in Nepal. Out of these, 3 are bigger types (wholesale microfinance), and the other 54 are retail microfinance companies.

List of retail microfinance (सूक्ष्म वित्त) companies

 
S.NMicrofinance CompanyOperation Date (A.D.)Head Office
1Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd.7/17/1999Naxal, Kathmandu
3Deprosc Laghubitta Bittiya Sanstha Ltd.7/3/2001Bharatpur, Chitwan
4Chhimek Laghubitta Bittiya Sanstha Ltd.12/10/2001Old Baneshwor, Kathmandu
5Swabalamban Laghubitta Bittiya Sanstha Ltd.2/22/2002Kamal Pokhari, Kathmandu
6Nerude Laghubitta Bittiya Sanstha Ltd.6/15/2007Biratnagar, Morang
7Mithila Laghubitta Bittiya Sanstha Ltd.4/29/2009Dhalkebar, Dhanusha
8Sworojagar Laghubitta Bittiya Sanstha Ltd.12/16/2009Banepa, Kavre
9Kalika Laghubitta Bittiya Sanstha Ltd.2020/01/08*Pokhara, Kaski
10Mirmire Laghubitta Bittiya Sanstha Ltd.9/23/2010Banepa, Kavre
11Janautthan Samudayik Laghubitta Bittiya Sanstha Ltd.11/9/2010Butwal, Rupandehi
12Suryodaya Womi Laghubitta Bittiya Sanstha Ltd.2022/04/02*Banepa, Kavre
13Laxmi Lighubitta Bittiya Sanstha Ltd.6/4/2012Maharajgunj, Kathmandu
14Vijaya Laghubitta Bittiya Sanstha Ltd.3/28/2013Gaidakot, Nawalparasi
15NMB Laghubitta Bittiya Sanstha Ltd.3/31/2013Pokhara-Hemja, Kaski
16Forward Microfinance Bittiya Sanstha Ltd.5/17/2013Duhabi Bhaluwa, Sunsari
17Global IME Laghubitta Bittiya Sanstha Ltd.5/19/2013Pokhara, Kaski
18Mahuli Laghubitta Bittiya Sanstha Ltd.2020/11/23*Bakdhuwa, Saptari
19Meromicrofinance Laghubitta Bittiya Sanatha Ltd.7/18/2013Battar, Nuwakot
20Samata Gharelu Laghubitta Bittiya Sanatha Ltd.2021-04-15*Banepa, Kavrepalanchowk
21Samudayik Laghubitta Bitiya Sanstha Ltd.4/13/2014Banepa, Kavre
22National Microfinance Laghubitta Bittiya Sanstha Ltd.7/2/2014Nilkantha, Dhading
23Grameen Bikas Laghubitta Bittiya Sanstha Ltd.2014/8/15*Butwal, Rupandehi
24WEAN Nepal Laghubitta Bittiya Sanstha Limited2021-11-01*Phataksila, Sindhupalchok
25Unnati Sahakarya Laghubitta Bittiya Sanstha2020/07/10*Siddarthanagar, Rupandehi
26NADEP Laghubitta Bittiya Sanstha Ltd.5/15/2015Gajuri, Dhading
27Support Microfinance Bittiya Sanstha Ltd.7/12/2015Hasposa, Itahari
28Aarambha Chautari Laghubitta Bittiya Sanstha1/3/2016Butwal, Rupandehi
29Asha Lagubitta Bittiya Sastha Ltd.8/29/2016Madanpur Nuwakot
30Gurans Laghubitta Bittiya Sastha Ltd.11/16/2016Dhankutabazaar, Dhankuta
31Ganapati Microfinance Bittiya Sastha Ltd.12/9/2016Shuklagandaki, Tanahu
32Infinity Laghubitta Bittiya Sanstha Ltd1/20/2017Gaidakot, Nawalparasi
33Swabhiman Laghubitta Bittiya Sanstha Ltd.5/22/2017Tilottama, Rupandehi
34Sabaiko Laghubitta Bittiya Sanstha Ltd.7/14/2017Bandipur, Tanahu
35Sadhana Laghubitta Bittiya Sanstha Ltd.10/30/2017Gorkha, Gorkha
36NIC Asia Laghubitta Bittiya Sanstha Ltd.2021/03/21*Banepa, Kavrepalanchowk
37Manakamana Smart Laghubitta Bittiya Sanstha Ltd.2020/07/26*Siddarthanagar, Ruphandehi
38Samaj Laghubitta Bittiya Sanstha Ltd.5/15/2018Malangawa, Sarlahi
39Mahila Laghubitta Bittiya Sanstha Ltd.10/18/2018Banepa, Sanga, Kavrepalanchok
40Manushi Laghubitta Bittiya Sanstha Ltd.11/17/2018Banepa, Bhaisepati, Kavrepalanchok
41Unique Nepal Laghubitta Bittiya Sanstha Ltd.2022/01/14*Kohalpur, Banke
42Jalpa Laghubitta Bittiya Sanstha Limited2020-12-01*Butwal, Rupandehi
43Upakar Laghubitta Bittiya Sanstha Limited3/27/2019Kohalpur, Banke
44Dhaulagiri Laghubitta Bittiya Sanstha Limited2/19/2019Baglung -2, Baglung
45CYC Nepal Laghubitta Bittiya Sanstha Limited3/15/2019Pokhara, Kaski
46NESDO Samriddha Laghubitta Bittiya Sanstha Limited3/5/2019Kushma, Parbat
47Swastik Laghubitta Bittiya Sanstha Limited3/26/2019Lahan, Siraha
48Shrijanshil Laghubitta Bittiya Sanstha Limited3/15/2019Golbazar, Siraha
49Kisan Laghubitta Bittiya Sanstha Limited2020/07/13*Dhanagadhi, Kailali
50Jeevan Bikash Laghubitta Bittiya Sanstha Limited2020/09/07*Katahari, Morang
51BPW Laghubitta Bittiya Sanstha Limited4/15/2019Banepa, Kavrepalanchok
52Aatmanirbhar Laghubitta Bittiya Sanstha Limited4/15/2019Ghorahi, Dang
53Super Laghubitta Bittiya Sanstha Limited1/15/2020Tulshipur, Dang
54Aviyan Laghubitta Bittiya Sanstha Limited12/17/2019Panauti, Kavre
55Himalayan laghubitta01/12/2067Chabahil, Kathmandu, Nepal

List of wholesale microfinance companies

S.NMicrofinance CompanyOperation Date (A.D.)Head Office
1Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd.3/11/2002Babarmahal, Kathmandu
2First Microfinance Laghubitta Bittiya Sanstha Ltd.12/28/2009Gyaneshwor, Kathmandu
3RSDC Laghubitta Bitiya Sanstha Ltd9/11/2013Butwal, Rupandehi

What is the Infrastructure Development Bank?

The Infrastructure Development Bank is a Financial Institution without a specific classification, authorized by the Nepal Rastra Bank. As of June 2023, there is a single financial institution falling under this category.

  • Nepal Infrastructure Bank Limited (NIFRA)

Importance of banks in Nepal

In the contemporary economic system and society, banks are essential. They are important on many levels to people, organizations, and governments. The following are some critical facets of banks’ significance:

  • Secure Deposits: Banks provide a secure location to store cash, lowering the chance of loss or theft.
  • Credit Access: They give people and companies loans and credit lines to help them with investments and purchases.
  • Capital Formation: To promote economic growth, banks gather deposits and channel them toward profitable investments.
  • International Trade: Banks support international trade by providing services like foreign exchange and letters of credit.
  • Financial Services: They offer financial goods, wealth management, and investment advice.
  • Economic Stability: The general stability of the economy is aided by a sound financial system.
  • Currency management: To control inflation and guarantee stability, central banks that are affiliated with banks govern currencies.
  • Banks act as financial intermediaries by bringing together savers and borrowers and directing money toward investments and economic expansion.
  • Banks offer payment systems for quick and safe transactions, resulting in efficient payments.
  • Banks provide resources and services for risk management of financial hazards.
  • Banks have an impact on interest rates, which affect borrowing costs and economic activity.
  • Banks are involved in the issue of government debt to finance public goods and services.

Roles of banks in Nepal

  • Banks serve as middlemen in the lending process between depositors (savers) and borrowers. They amass deposits from private citizens and commercial entities and lend these monies to borrowers for a variety of uses, hence promoting economic activity.
  • Banks offer a secure location for people and companies to deposit their money, lowering the danger of carrying cash. This security promotes financial stability and saving.
  • Banks provide effective payment and settlement mechanisms, such as checks, credit/debit card services, and electronic fund transfers. Both organizations and people can use these technologies to make transactions simpler.
  • Banks provide credit to people, companies, and farms through loans and credit lines. This ease of obtaining finance promotes investments, employment development, and economic expansion.
  • Banks are essential to capital development because they gather funds and direct them toward profitable ventures. Infrastructure, industries, and enterprises all benefit from this.
  • Due to the open economy of Nepal, banks offer foreign exchange services for remittances and international commerce, adding to the nation’s foreign exchange reserves.

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FAQs – list of banks in Nepal

How many banks are there in Nepal?

Altogether there are 20 commercial banks,17 development banks, 17 finance companies, and 57 microfinance in Nepal.

Which are the top 5 banks in Nepal?

There are many factors to determine the top bank. According to the paid-up capital, the top five banks are: Global IME Bank Ltd, Nepal Investment Mega Bank Ltd, Nabil Bank Limited, Kumari Bank Ltd, and Prabhu Bank Ltd

What are the 3 government banks in Nepal?

The three government banks in Nepal are: Nepal Rastra Bank, Rastriya Banijya Bank, and Agricultural Development Bank

What are BFIs in Nepal?

Conclusion

The list of banks in Nepal has developed greatly over the years, now providing a wide range of financial services to meet the various demands of its people and enterprises. Understanding Nepal’s banking system, its role, and its importance will enable you to make wise financial decisions and take full advantage of the country’s vibrant banking scene, whether you are a native or a tourist. 

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News Finance

From Income to Excise: Exploring Tax Rate in Nepal

Tax Rate in Nepal

Taxes are obligatory payments collected from people or businesses by the government, whether at the municipal, state, or federal levels. Tax revenues are used to fund a variety of government initiatives, such as Social Security and Medicare as well as public infrastructure and services like roads and schools.

Taxes are borne by whoever bears the cost of the tax in economics, whether this is the entity being taxed, such as a business, or the final users of the items produced by the firm. Taxes should be taken into consideration from an accounting standpoint, including payroll taxes, federal and state income taxes, and sales taxes.

What are the types of Tax?

Like many other nations, Nepal has a complex tax structure to raise money for its administration. The following are the main tax categories in Nepal:

  • Personal Income Tax: This tax is imposed on the earnings of individuals. The progressive structure of the tax rates means that people with higher incomes are required to pay a bigger proportion of it in taxes.
  • Corporate Income Tax:  Businesses in Nepal are required to pay corporate income tax on their profits. Although differences may occur based on the sector or businesses with special benefits, the standard rate is 25%.
  • Value Added Tax (VAT): A consumption tax known as VAT is levied on the value added to goods and services at each stage of production and distribution. Nepal’s standard VAT rate is 13%, yet it’s possible that some essentials will have lower rates.
  • Capital Gains tax: Capital gains tax is owed on the revenue generated by the sale of capital goods like stocks, real estate investment, or structures. Individual and business rates differ and may be subject to reductions or exclusions.
  • Excise tax: Alcohol, cigarettes, and various types of vehicles are examples of products that are subject to excise taxes since they are usually seen as luxury or non-essential commodities.
  • Customs Duty: Customs tax is imposed on commodities carried into Nepal. The costs may vary depending on the product’s nature and place of manufacture.
  • Other Taxes: Nepal imposes a number of other levies, such as stamp duty, property tax, and car tax.

Why is Tax important in Nepal?

Tax plays a vital role in many aspects such as revenue generation, social welfare, and so on. The importance of tax in Nepal is as follows:

  • The primary source of revenue for governments is taxes. Roads, schools, hospitals, and public safety are just a few of the things they finance in terms of infrastructure and public services.
  • Progressive taxation contributes to wealth redistribution and lowers income inequality by charging higher tax rates to people with higher earnings.
  • The economy may be regulated through tax laws. Governments can lower taxes during economic downturns to encourage expenditure, and they can raise taxes during times of strong inflation or economic expansion to rein in wasteful spending.
  • Taxes support social welfare programs including healthcare, unemployment insurance, and retirement pensions, offering a safety net for people in need.
  • Taxes are another source of funding for the armed forces and national defense, preserving a nation’s security and independence.
  •  Taxes, such as carbon taxes or green incentives, can be used to promote eco-friendly behavior and discourage actions that hurt the environment.

Tax Rate in Nepal Fiscal Year 2080/81

  • Income Tax Rate in Nepal For Individuals (unmarried)

Taxable Income (in Rs)Applicable Tax RateTax Payable (in Rs)
Up to 500,0001% (by special provision)5,000
Above 500,000 up to 700,00010%20,000
Above 700,000 up to 1,000,00020%60,000
Above 1,000,000 up to 2,000,00030%300,000
Above 2,000,000 up to 5,000,000 (additional 20% in the tax slab of S.N. 4)36% (additional 20% of 30)1,080,000
Above 5,000,000 (additional 30% in the tax slab of S.N. 4)39% (additional 30% of 30)390,000

  • Income Tax Rate in Nepal For Married Couples

Taxable Income (in Rs)Applicable Tax RateTax Payable (in Rs)
Up to 600,0001% (by special provision)6,000
Above 600,000 up to 800,00010%20,000
Above 800,000 up to 1,100,00020%60,000
Above 1,100,000 up to 2,000,00030%270,000
Above 2,000,000 up to 5,000,000 (additional 20% in the tax slab of S.N. 4)36% (additional 20% of 30)1,080,000
Above 5,000,000 (additional 30% in the tax slab of S.N. 4)39% (additional 30% of 30)390,000

  • Tax Rate in Nepal For Non-residents

Nature of TransitionFY 2023-24FY 2023-24
Income earned from normal transitionNo change25% flat rate on taxable income
Income earned providing shipping, air transport or telecom services, postage, satellite, and optical fiber projectNo change 5%
Income earned providing shipping, air transport, or telecom services within the territory of Nepal.No change 2%
Repatriation of profit by foreign permanent establishmentNo change 5%

  • Tax Rate in Nepal For Business

CategoryFY 2023-24 Tax RateFY 2022-23 Tax RateNormal RateRebate
Normal business25%-25%25%
Special Industry under section 11 for the whole year25%20%20%20%
Entities constructing and operating ropeway, cable car, or sky bridge25%40%**15%**15%
Entities constructing and operating roads, bridges, tunnels, railways, and airports25%50%**12.5%**12.5%
Entities operating trolley buses or trams25%40%**15%**15%
Entities with export income from a source in Nepal25%20%20%20%
Entities involved in the construction or operation of public infrastructure and to be transferred to the GoN or involved in the construction of hydropower houses and their generation and transmission25%20%20%20%
Banks and financial institutions (Commercial Banks, Development Banks, and Finance Companies)30%-30%30%
Entity carrying General insurance business (Non-life Insurance)30%-30%30%
Entities involved in financial transactions [Newly added term in the list of 30% tax rate]30%-30%-
An entity engaged in petroleum business under Nepal Petroleum Act, 204030%-30%30%
Entity engaged in the business of cigarettes, tobacco, cigars, chewing tobacco, pan masala, alcohol, and beer30%-30%30%
Entity engaged in Telecommunication and Internet service30%-30%30%
An entity engaged in Money transfer30%-30%30%
Entity engaged in Capital market business, Securities business, Merchant banking, Commodity futures market, Securities and Commodity broker30%-30%30%

Vat in Nepal

VAT stands for Value Added Tax. In Nepal, it’s a tax applied at each stage of the production and distribution chain. Imagine a product journeying from raw material to the store shelf – VAT is a small tax bite taken at every step, It’s like a small fee for playing in the business sandbox.

  • In the case of B2C, you’re required to pay 13% VAT on every sale to a Nepali resident.
  • In the case of a B2B transaction with a legit VAT number, there is no requirement for you to collect the tax. The responsibility for handling the tax is assumed by the buyer’s business through Nepal’s reverse-charge mechanism.

Compulsory VAT Registration Requirements for Various Businesses in Nepal

Those engaged in the business of trading goods subject to VAT must register for compulsory VAT. Even if the business involves the trading of such goods in any amount (not just exceeding one rupee annually), registration for compulsory VAT is mandatory. The following businesses must register for compulsory VAT:

  • Businesses involved in the production of bricks, liquor distributors, wine, software, trekking, rafting, ultralight flights, paragliding, tourism rides, crusher, sand and stone mining, and slate and stone industry-related businesses.
  • Businesses involved in hardware, sanitary, furniture, fixtures, furnishing, automobiles, motor parts, electronics, marble, educational consultancy, discotheques, health clubs, massage therapy, beauty parlors, catering services, party palace business, parking services, businesses using machinery and equipment declared in the disclaimer used in restaurants, including bars, ice cream industry, color lab, boutiques, tailoring business including the supply of uniforms to educational institutions or health institutions or other organizations.
  • Businesses providing educational and legal consultation (lawyers) accounting and auditing services and companies. (This was not there before. It has been added to the current budget.)
  • The system has been established to register for compulsory VAT for goods mentioned in Schedule 1 of the previous VAT Act (goods not exempt from VAT), including mustard oil, soybean oil, tempo, and Dhunwani service.

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FAQs:

Who pays the highest tax in Nepal?

Nepal Telecommunication has paid the most income tax while Gorkha Brewery has the highest value-added tax (VAT).

How much income is tax-free in Nepal?

An annual income less than 500,000 is tax-free in Nepal

Which country pays the highest tax?

The Ivory Coast currently has the highest income tax rate globally, with an impressive 60% on the highest bracket of annual income

What is the tax rate for normal businesses in Nepal?

For normal business, the tax rate is 25%.

What is the formula of rate of VAT?

The formula for calculating the rate of Value Added Tax (VAT) is: VAT Rate = (Tax Amount/Net Sales)*100 Where: VAT Rate is the percentage rate of VAT. Tax Amount is the amount of VAT collected. Net Sales is the total sales amount before the inclusion of VAT. This formula expresses the VAT rate as a percentage of the net sales, indicating the proportion of the sales amount that constitutes the VAT.

Conclusion

For the governments, taxes are the main source of income. This money is used for a variety of purposes, including funding public services like schools, emergency services, and social programs as well as enhancing and maintaining public facilities such as the roads we drive on. Taxation is the backbone of a government, allowing it to deliver important services, correct social injustices, and promote economic stability and progress. Individuals and corporations have to understand many tax kinds and their effects in order to fulfill their commitments and improve the community. 

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News

Exploring Nepal: A Comprehensive List of 77 Districts of Nepal

Districts of Nepal

In Nepal, districts come after provinces as the level two administrative units. Municipalities and rural municipalities are divisions of districts. Nepal has 77 districts and 7 provinces.

After the state’s administrative divisions were reorganized, the districts of Nawalparasi and Rukum were split into the respective Eastern Rukum District and Western Rukum District, as well as Parasi District (officially Nawalparasi (West of Bardaghat Susta) District) and Nawalpur District (officially Nawalparasi (East of Bardaghat Susta) District).

The Chief District Officer (C.D.O. ), who is chosen by the government and acts as the top administrative figure within a district, is at the top of the hierarchy of district officials. The duties of the C.D.O. include managing the district’s many departments, such as the departments of security, health, and education.

The District Coordination Committee (DCC) also acts as the District Assembly’s executive branch. Particularly when it comes to settling any political disagreements, the DCC is crucial in promoting cooperation between the Provincial Assembly, rural municipalities, and municipalities. Furthermore, it keeps local organizations functioning in the district in harmony with the provincial and federal governments.

History of Districts of Nepal

Nepal was divided into 10 districts during the rule of King Rajendra Bir Bikram Shah and Prime Minister Bhimsen Thapa, with the lands to the east of the Dudh Koshi River constituting a single district known as Dhankuta.

From 1885 until 1950, Nepal was split into 32 districts under the rule of Prime Minister Bir Shumsher Jang Bahadur Rana, who founded the Rana administration. Doti, Palpa, and Dhankuta were among those to get the “gaunda” or cantonment area designation. 20 districts made up the hilly region, whereas 12 districts made up the Terai region.

From Bir Shumsher Jang Bahadur Rana’s leadership until the fall of the Rana dynasty in Nepal in 1951, and until the proclamation of the new constitution of the Kingdom of Nepal in 1962, this division of 32 districts lasted. Every district had a separate administrative center, which was managed by a district administrator known as the “Bada Haqim.”

A massive administrative reform took place in Nepal in 1962, replacing the 32 old districts with a new system made up of 14 zones and 75 development districts.

Nepal had a four-tiered governmental structure in place from 1962 to 1990 when it was under the Panchayat System. During this time, there were 75 districts in the nation. Later, two more districts were added by severing Nawalparasi and Rukum, increasing the total to 77.

Map of Nepal with District

Map-of-Nepal

 

Province of Nepal

list of the provinces of Nepal with their respective capital city, no. of districts, and area in sq. km

S.N.ProvincesCapitalNo. of DistrictsArea in (Sq. KM)
1Koshi ProvinceBiratnagar1425905
2Madhesh ProvinceJanakpur89661
3Bagmati ProvinceHetauda1320300
4Gandaki ProvincePokhara1129504
5Lumbini ProvinceDeukhuri1222288
6Karnali ProvinceBirendranagar1027984
7Sudurpashchim ProvinceGodawari919539

List of Districts of Nepal: Headquarters and Area

Districts of Province 1: Koshi Province

The total area covered by Koshi Province is 25,905 km Square and its total population is 4,961,412. 

map-of-koshi province

 

District NameHeadquartersArea in (Sq. KM)
Bhojpur DistrictBhojpur1507
Dhankuta DistrictDhankuta892
Ilam DistrictIlam1703
Jhapa DistrictBhadrapur1606
Khotang DistrictDiktel1591
Morang DistrictBiratnagar1855
Okhaldhunga DistrictSiddhicharan1074
Panchthar DistrictPhidim1241
Sankhuwasabha DistrictKhandbari3480
Solukhumbu DistrictSolududhkunda3312
Sunsari DistrictInaruwa1257
Taplejung DistrictPhungling3646
Tehrathum DistrictMyanglung679
Udayapur DistrictTriyuga2063

Districts of Province 2: Madhesh Province

The total area covered by Province 2 is 9,661 km square and its total population is 6,114,600.

map-of-madhesh province

District NameHeadquartersArea in (Sq. KM)
Parsa DistrictBirgunj1353
Bara DistrictKalaiya1190
Rautahat DistrictGaur1126
Sarlahi DistrictMalangwa1259
Dhanusha DistrictJanakpur1180
Siraha DistrictSiraha1188
Mahottari DistrictJaleshwar1002
Saptari DistrictRajbiraj1363

Districts of Province 3: Bagmati Province

The total area covered by Bagmati Province is  20,300 km square whereas its population is 6,116,866.

Map-of-Bagmati Province

District NameHeadquartersArea in (Sq. KM)
Sindhuli DistrictKamalamai2491
Ramechhap DistrictManthali1546
Dolakha DistrictBhimeshwar2191
Bhaktapur DistrictBhaktapur119
Dhading DistrictNilkantha1926
Kathmandu DistrictKathmandu395
Kavrepalanchok DistrictDhulikhel1396
Lalitpur DistrictLalitpur385
Nuwakot DistrictBidur1121
Rasuwa DistrictDhunche1544
Sindhupalchok DistrictChautara2542
Chitwan DistrictBharatpur2218
Makwanpur DistrictHetauda2426

Districts of Province 4:  Gandaki Province

The total area covered by Gandaki province is 21,793km square and its population is 2,466,427. 

Map-of-gandaki province

District NameHeadquartersArea in (Sq. KM)
Baglung DistrictBaglung1784
Gorkha DistrictGorkha3610
Kaski DistrictPokhara2017
Lamjung DistrictBesisahar1692
Manang DistrictChame3573
Mustang DistrictJomsom2246
Myagdi DistrictBeni2297
Nawalparasi (East of Bardaghat Susta) DistrictKawasoti1043
Parbat DistrictKusma494
Syangja DistrictPutalibazar1164
Tanahun DistrictDamauli1546

Districts of Province 5: Lumbini Province

The total area covered by Lumbini province is 19,271 km square and the total population is

5,122,078.

Map-of-Lumbini province

District NameHeadquartersArea in (Sq. KM)
Kapilvastu DistrictTaulihawa1738
Nawalparasi (West of Bardaghat Susta) DistrictRamgram634.88
Rupandehi DistrictSiddharthanagar1360
Arghakhanchi DistrictSandhikharka1193
Gulmi DistrictTamghas1149
Palpa DistrictTansen1373
Dang DistrictGhorahi2955
Pyuthan DistrictPyuthan1309
Rolpa DistrictLiwang1879
Eastern Rukum DistrictRukumkot1161.13
Banke DistrictNepalganj2337
Bardiya DistrictGulariya2025

Districts of Province 6: Karnali Province

The total area covered by Karnali Province is 30, 702 km square, and the total population is 1,688,412.

Map-of-Karnali Province

District NameHeadquartersArea in (Sq. KM)
Western Rukum DistrictMusikot1213.49
Salyan DistrictSalyan1462
Dolpa DistrictDunai7889
Humla DistrictSimikot5655
Jumla DistrictChandannath2531
Kalikot DistrictManma1741
Mugu DistrictGamgadhi3535
Surkhet DistrictBirendranagar2451
Dailekh DistrictNarayan1502
Jajarkot DistrictKhalanga2230

Districts of Province 7: Sudurpaschim Province

The total area covered by this province is 19,539 km square and its total population is 515,069. 

Map-of-sudurpaschim Province

District NameHeadquartersArea in (Sq. KM)
Kailali DistrictDhangadhi3235
Achham DistrictMangalsen1680
Doti DistrictDipayal Silgadhi2025
Bajhang DistrictJayaprithvi3422
Bajura DistrictMartadi2188
Kanchanpur DistrictBheemdatta1610
Dadeldhura DistrictAmargadhi1538
Baitadi DistrictDasharathchand1519
Darchula DistrictDarchula2322

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FAQs:

Which is the largest province according to area?

Karnali province is the largest province according to area.

Which is the smallest province according to area?

Madhesh province is the smallest province according to area.

Which is the largest province according to population?

Bagmati province is the largest according to population.

Which is the smallest province according to both area and population?

Madhesh province( province 2) is the smallest province according to both area and population.

Which is the smallest province according to population?

Karnali is the smallest province according to population only.

What are the new two districts of Nepal?

The names of two districts — Rukum and Nawalparasi — that were split into two each will remain the same if the constitution is not amended by a two-thirds majority.

How many districts are there in 7 provinces of Nepal?

There are 77 districts in 7 provinces where each districts are divided into municipalities and rural municipality.

Conclusion:

The division of 77 districts significantly consolidated authority not just in the national capital but also at the district headquarters. Therefore, the federalization process must ensure that the authorities consolidated in district headquarters are decentralized. However, it seems like there should be a detailed discussion about the importance or lack of district-level authority. Any devolution must guarantee that the current public services provided at the local level are not impacted during the transition.

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News Finance

A Comprehensive Guide for Checking IPO Results

Checking IPO Results
A Comprehensive Guide for Checking IPO Results

Checking IPO results refers to the process of reviewing and assessing the performance of an Initial Public Offering (IPO) investment. An IPO is listing the shares of a private company to the public market for the first time. It is done to raise equity capital. It is the selling of securities to the public in the primary market. In this article, we’ll cover the process of checking the IOP results.

View Your IPO Results

Understanding CDSC (Central Depository Service and Clearing Limited)

CDS and Clearing Limited, a company incorporated under the company legislation, in 2010 was promoted by NEPSE(Nepal Stock Exchange). The main objective of the company is to provide a central depository for numerous instruments like equity, bonds, warranties, etc. This organization has been given the responsibility of holding, depositing, withdrawing, and more. NEPSE owns all of the shares of CDSC.

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How do you check IPO results in Nepal?

Checking IPO Results in Nepal can be done in 3 ways:

  1. CDSC IPO Result Website
  2. Mero Share CDSC Website
  3. IPO Issue Manager’s Website

1. CDSC IPO Result 

To check IPO results from the CDSC, follow the given steps:

  • Select the IPO-applied company name.
  • Enter the 16-digit BOID code given by the bank. It is the Demat account number of the account holder.
  • Enter the captcha in the captcha box. Which can be word or numerical on the right.
  • Click on the view result button.

View Result

(After clicking on the “View Result” button you’ll find out whether the IPO is allotted to you or not)

2. Mero Share CDSC

You can check the IPO results from the Mero Share CDSC site also with the given steps:

  • Select your Depository Participants(DP)
  • Enter username and password, then click login
  • Click on “My ASAB”, on the left side

  • After that click on “Application Report”.
  • Then click on “Report” to view the result of the IPO you want. Then you’ll find out whether the IPO is allotted to you or not.

 

3. IPO Issue Manager’s Site

Checking IPO Results from the IOP issue manager’s site follow the given steps:

  • Visit the website of the IPO issue manager.
  • Login to IPO result and enter your demat account details.
  • Click the “Search result” button.

( After clicking on the search result button you’ll find out whether the IPO is allotted or not )

Status of IPO allotment result

  • Unverified: When the application status shows unverified it means the IPO application has not been officially authenticated by the platform.
  • Verified: When the application status shows verified it means that your application has been officially verified or authenticated by the platforms.
  • Allowed and not allotted: When the application status shows allotted it means that you have been given the unit of share you had applied for. When the application status shows not allotted it means that you didn’t get the unit of share you had applied for.
  • Rejected: When the application status shows rejected it means that you could have been allotted the share but your account doesn’t contain enough amount.

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FAQs

What is the full form of IPO?

The full form of IPO is Initial Public Offering.

Do closed-end funds have an IPO?

Yes, closed-end funds typically have an Initial Public Offering (IPO) when they are first created. During the IPO, a fixed number of shares are offered to the public for the first time.

Is IPO a mutual fund?

No, an IPO (Initial Public Offering) is not a mutual fund. An IPO is a financial event in which a private company makes its shares available for public purchase for the first time. It is the process by which a private company becomes a public company, and its shares are listed on a stock exchange.

How long does it take to publish the IPO result?

It takes some days or up to a week to publish the IPO result after the issuing deadline has been crossed.

Which is the official website to check IPO results in Nepal?

The official website to check IPO results In Nepal is the CDC’s official IPO result site. However, you can check the IPO result from the Mero Share CDC site and the IOP issue managers site as well.

How do I find out my IPO results?

You can find your IPO result from the official IPO result website of CDSC, the mero share website, or the IPO issues manager site.

Conclusion

Checking IPO Results the above-given methods are reliable and authentic. Investing in IPOs can return you handsome amount of money. Now that you’ve gone through this blog you will be able to check your IPO results easily and you’ll also have a basic understanding of IPOs and CDSC.

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News insurance

Navigating Electric Car Insurance in Nepal: Tips and Coverage Insights

Electric Car Insurance

As Nepal takes significant strides towards a greener and more sustainable future, the adoption of electric vehicles (EVs) is on the rise. With the increasing popularity of EVs, it’s essential to understand the ins and outs of electric vehicle insurance in Nepal. We’ll go over all the many aspects of insuring your electric car in this post so you have the information you need to make wise choices.

Understanding Electric cars and their insurance

An automobile that runs on electricity rather than conventional internal combustion engines (ICEs) fuelled by gasoline or diesel is known as an electric vehicle (EV). EVs derive propulsion power from electric motors and rechargeable batteries. 

Electric car insurance is a special kind of auto insurance created to protect electric automobiles. Similar to insurance for standard gasoline or diesel automobiles, it offers monetary security for mishaps, theft, or EV damage.

Types of Electric Car Insurance

To satisfy the demands of owners of electric cars (EVs), electric car insurance, like insurance for conventional gasoline or diesel-powered vehicles, offers a variety of coverage alternatives. You can come across the following types of electric vehicle insurance coverage:

  • Liability Insurance: In most jurisdictions, liability insurance is the bare minimum need for vehicles, including electric vehicles. If you cause an accident and cause damage to other people’s property or injury to other people, it is covered. This insurance does not cover your electric car in the event of damage.
  • Collision Coverage: Regardless of who is at fault, collision coverage will pay for repairs to your electric car if it is damaged in a collision with another automobile or object. If you have a car loan or lease, this coverage is frequently necessary.
  • Comprehensive Coverage: Incidents unrelated to collisions are covered under comprehensive coverage. It covers robbery, vandalism, weather-related damage (such as hail or flooding), and any unanticipated occurrences that might harm or wreck your electric vehicle.
  • Uninsured/underinsured motorist: Uninsured/underinsured motorist coverage safeguards you if you are involved in a collision with a driver who is either uninsured or whose insurance is insufficient to pay for your losses.
  • Gap Insurance: If you financed your car, gap insurance is very important for EVs. If your EV is deemed a total loss as a result of an accident or theft, it pays the difference between what you still owe on your auto loan or lease and its real cash worth.
  • Rental Car Reimbursement: This insurance helps pay for the expense of renting a substitute vehicle if your electric car is out getting repairs following an accident.
  • Coverage for Charging Equipment: Some insurance companies provide coverage for loss or theft of the charging equipment, including home chargers, for electric vehicles.
  • Maintenance Coverage: Although uncommon, certain insurance companies may provide coverage for particular maintenance requirements relating to electric cars, such as battery replacement or charging system repairs.

Benefits of Buying Insurance

The advantages of purchasing insurance for your electric vehicle vary according to the particulars of owning an electric vehicle. The advantages of buying insurance for electric vehicles are as follows:

  • Component Coverage: Electric vehicle insurance provides coverage for vital electrical parts including batteries and motors.
  • EV-specific: It is created to handle the unique requirements and dangers of owning an electric car.
  • Environmental reductions: Several insurance companies provide reductions because electric automobiles are environmentally good.
  • Lower running expenses: Because EVs have lower running expenses, insurance premiums may be affected.
  • Regenerative Braking: Coverage for the regenerative braking systems particular to EVs may be included.
  • Charging Equipment: Chargers in the home may also be covered if they sustain damage while being charged.
  • Government Incentives: Aids in recovering government incentives if your EV is stolen or totaled.
  • Investment Protection: Safeguards the substantial financial investment made in an electric vehicle.

What benefits do electric vehicles have over conventional ones?

Electric vehicles (EVs) enable the realization of energy independence. Traditional petrol stations are no longer necessary, but you still need charging stations to recharge your electric vehicle. Think about how convenient it would be to plug your car in when you got home from work and have a completely charged battery the next morning. Additionally, long-distance driving in an electric car is now more feasible than ever thanks to the rising number of public charging stations around the nation.

The large reduction in maintenance costs is another important benefit of having an electric car. The day when you had to stress about regular oil changes or incidental repairs like radiator hoses, fan belts, and gaskets is long gone. In the long run, EVs save you time and money since their designs are simpler and they have fewer moving components. A more economical and ecologically beneficial method of transportation is made possible by the switch to electric cars, which also supports energy independence.

Challenges of buying electric car Nepal

The Nepal Electricity Authority (NEA) is also conducting studies to determine how many EV charging stations are needed on the country’s roads. This is a component of NEA’s marketing efforts to persuade people to drive eco-friendly cars in the future. The purpose of this study is to locate prospective sites for adding more charging stations. In addition, some of the challenges faced by EVs in the Nepalese market are highlighted below;

Cost:

  • Due to variables including hefty taxes, customs fees, import prices, and operation and maintenance costs, owning a vehicle in Nepal is expensive.
  • Even electric vehicles (EVs) are expensive, costing an average of USD 17,000 for a basic EV, keeping them out of reach for many.
  • Maintenance problems are exacerbated by the scarcity of certain EV brands and components.
  • Few EV brands now have a monopoly due to the tiny size of the industry.

Policy and Finance:

  • There aren’t any established import and usage regulations for EVs in Nepal.
  • While the government provides certain benefits to EV owners, such as road tax exemptions and reduced customs duties, all imported goods are still subject to a 13% tax.
  • For EV charging, there is no set fee structure.
  • Lower power prices and unique off-peak EV charging programs are required to promote adoption.

Power Availability:

  • Existing EV charging stations consume a lot of electricity, which might put stress on the country’s energy infrastructure.
  • Challenges include high power tariff prices and clogged distribution networks.
  • There aren’t any dependable electrical connections or specialized distribution systems.

Charging Stations:

  • Due to expensive technology and installation expenses, private companies own only a few charging stations, most of which are located in large cities.
  • The Nepal Electricity Authority (NEA) is putting 50 charging stations in place all around the nation.
  • Long-distance EV travel is hampered by a lack of charging facilities.

Target Group:

  • EVs are best suited for driving in cities and unsuitable for long-distance or rural routes.
  • Present-day electric vehicles (EVs) imported into Nepal frequently have few features, traditional styling, and lesser standards.
  • Only upper-income households can afford to use EVs due to high operating and maintenance costs.
  • Effective incentives to encourage EV adoption are lacking from the Nepalese government.

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FAQs:

What insurance do you need for electric vehicles?

Like traditional car insurance, policies for EVs still require the same types of coverage (e.g. third-party liability, accident benefits), but you can also add on special ranges to cater to the unique needs of the vehicle.

Why is insurance more expensive for EVs?

When insurance companies establish their rates, they take into consideration past claims for vehicles that are comparable, among other factors. For instance, if your electric car model has a history of high-cost and/or frequent claims, insurance costs will typically be higher for all owners of the model.

Do electric cars pay less insurance?

Electric vehicle insurance rates might vary, although they are frequently less expensive than those for conventional gasoline vehicles. This is because electric cars (EVs) often cost less to repair and maintain, have fewer moving parts, and are seen as safer due to their cutting-edge technology. The model of the vehicle, the history of the driver, and the coverage decisions made, however, also have an influence on insurance premiums

Is vehicle insurance mandatory in Nepal?

Yes, vehicle insurance is mandatory in Nepal. The updated insurance documents must be shown while renewing the bluebook.

Is owning an EV more expensive?

Due to the cost of the battery and other associated technology, purchasing an electric vehicle (EV) may have greater initial outlay costs. However, because of lower fuel and maintenance costs, EVs are frequently less expensive to operate and maintain.

Conclusion:

Owning and using an EV in Nepal requires having electric vehicle insurance. You may make a more educated choice if you are aware of the many coverage options, the variables that determine premiums, and advice for choosing the best insurance. You can comply with the law, protect yourself and other drivers on the road, and support a sustainable future by getting proper insurance for your electric car.