School teachers may get 80% interest subsidy on vehicle loans

KATHMANDU: The Education (11th Amendment) Regulations, 2026, forwarded to the Ministry of Finance for approval, have proposed different facilities for school teachers.

One of the facilities proposed by the ministry is interest subsidies for teachers who purchase motor vehicles in instalments. Under the proposed provision, the government will cover up to 80% of the interest on bank loans teachers take to purchase motor vehicles. Teachers would have to pay the remaining 20% of interest on their own.

The regulations have set maximum vehicle purchase limits based on teachers’ levels and grades. First-class secondary-level teachers would be eligible to purchase vehicles worth up to Rs 5 million, while second-class teachers would be allowed to purchase vehicles worth up to Rs 4 million. Similarly, third-class secondary-level teachers and teachers of all grades at the lower secondary and primary levels would be eligible to purchase two-wheelers worth up to Rs 400,000.

Under the proposed arrangement, the government would subsidize up to 80% of the installment interest on bank loans taken to purchase vehicles. The subsidy would be available on the installment interest charged by the respective bank for as long as the teacher remains in service.

If approved by the finance ministry, the interest subsidy could make it easier for teachers to purchase personal vehicles.

The education ministry believes that the provision could particularly benefit teachers working at schools located far from their homes, in areas with inadequate public transportation, or those who face difficulties commuting regularly.