You can utilize a credit card’s available line of credit to make purchases, do debt transfers, and/or cash advances, but you must repay the loan’s principal at some point. When using a credit card, you must pay the minimum amount due on the balance by the due date each month.
List of the Best Credit Cards in Nepal
Customers in Nepal can get credit cards from the majority of commercial banks. A consumer must select the best option from the various options. The top 10 credit cards in Nepal that banks are currently offering are listed below.
1. Standard Chartered Bank Nepal (SCB)
When it comes to providing credit cards in Nepal, SCB is the market leader. There are currently cards with Visa Classic, Visa Platinum, and Bhatbhateni co-brand logos available. The Visa Classic joining and yearly fees are each Rs. 750, although the initial price is free the first time. Similar to that, the annual joining fee for Visa Platinum is Rs. 1500.
Instabuy: A unique feature of Standard Chartered Bank credit cards is Instabuy. Any purchases made from any seller for more than Rs 5000 may be converted to an EMI service. Even while other banks also provide the EMI option, it is still important to obtain credit approval—and that too from partners in business. However, SCB credit card holders have a unique option that allows them to convert any purchase above $5,000 into an EMI over the course of 18 months, regardless of the vendor. Furthermore, interest rates are extremely low in the market, at 0.833% or 10% annually.
When using a co-branded SCB and Bhatbhateni credit card to make a purchase, you will receive a 10% discount at all Bhatbhateni stores. Reward points for every Rs. 100 spent on retail goods or one point. This 1 point, which needs to be redeemed every two years, is equal to 1 Re. Gift cards are available or can be subtracted from yearly fees. So, if you decide to redeem your purchase of products and services for annual fees and spend Rs 75,000. Your annual fee is then waived. This characteristic is distinctive in its own right.
Interest rates are among the highest in the business, at 30% annually or 2.5% monthly. If you use your bank to make an online purchase in India or Nepal, there are no additional fees assessed, which is advantageous if you buy items from Amazon or any other Indian online retailer.
2. Nabil Bank Ltd
In Nepal, Nabil Bank is the second-largest credit card issuer. It provides domestic Nabil Smart Visa and Nabil Smart Master. For credit cards, the subscription fee is Rs. 4,000, and it can be paid yearly for the duration of the card’s four-year validity. As a result, it costs Rs 1000 annually.
As of the time of this article’s writing, Nabil Bank is the only bank in the sector to offer contactless cards, which is helpful in a pandemic situation like the one we are currently experiencing. Bank provides a renewal charge discount based on card usage, something that few other banks have done. Credit card customers can buy goods and services on an EMI basis with a wide range of tie-up vendors with banks. However, pre-approval and DO (delivery order) signed by the bank are necessary unlike Insta Buy of SCB where the things can be performed post-buy.
Customers with credit cards can purchase goods and services on an EMI basis from a variety of bank-affiliated suppliers. Contrary to SCB’s Insta Buy, where the actions can be taken after the purchase, pre-approval and a DO (delivery order) approved by the bank is required. When making an online payment, including in India, bank cards are accepted. However, for online payments in India, there is a tax of 0.5% or Rs. 50, whichever is greater.
3. Siddhartha Bank
In Nepal, Siddhartha Bank is the third-largest credit card issuer. The bank currently offers the Siddhartha Visa and Siddhartha UNO credit cards. While Siddhartha UNO credit card is a co-branded partnership with the UNO discount card, Siddhartha Visa credit card is a standard credit card.
If you shop and eat close to the durbar marg area, you can typically receive discounts of between 10% and 15% on your purchases and meals while using your UNO card. Therefore, it is among the greatest co-branded cards on the market that may be utilized in several shops and eateries. There aren’t many co-branded credit cards on the market, but one of the greatest is the Siddhartha UNO card.
Both types of cards have an Rs. 750 membership fee, while the yearly fees for the Siddhartha Visa and Siddhartha UNO credit cards are Rs. 750 and Rs. 1000, respectively.
4. Global IME Bank
Global IME bank comes in fourth place in terms of credit card issues, behind Siddhartha bank. It now offers two domestic credit cards: Global Classic and Global Gold. There are no differences in services other than the appearance of the cards.
One distinctive selling advantage of the Global IME credit card is that it provides an EMI facility with many different vendors; however, in order to purchase the item, pre-approval and a DO (delivery order) are required. Purchases made with a Global IME credit card are frequently paid for later.
For the Global Classic Domestic Credit Card and the Global Gold Domestic Credit Card, the annual charge is Rs. 1000 and Rs. 600, respectively. Even in India, bank cards are allowed for online payments; nevertheless, there is a fee of Rs 200 for each online transaction conducted in India.
5. Himalayan Bank
Despite being the first bank in Nepal to offer credit cards, the present bank lags behind its peer bank when it comes to client credit card issuance. Banks provide credit cards with Mastercard/Visa Classic and Mastercard/Visa Gold. The joining and yearly fees are each Rs. 750 and Rs. 1500.
6. NIC Asia Bank Limited
NIC Asia has been quite aggressive in the market, although fewer credit cards have been issued relative to the number of account holders it has kept. They provide Visa credit cards. Recently, Nic Asia has started to offer several discount programs to cardholders who use their cards at specific merchants. Each of the joining and yearly fees is Rs 1000.
7. Machhapuchhre Bank:
This newcomer to the credit card market offers a facility. An MBL Visa credit card is available. For corporate clients and other customers, the membership fee for the card is Rs. 750.
Every client type pays the same annual fee of Rs 750. Banks provide students with Student Cards, one of the more distinctive credit card products, with an annual fee of just Rs. 250 and a minimal Rs. 150 membership fee. The fee is comparable to those that many banks impose on their debit cards.
So, getting a student credit card is a wise decision. However, the limit on these cards is lower than that of other cards. Additionally, the bank offers Insta Buy through a chosen shop and offers to buy up to twice the credit card limit, meaning that someone with a credit card limit of one lakh rupees can buy products and services worth up to two lakh rupees.
8. Nepal Investment Bank
The Nepal Investment Bank (NIBL) provides Visa Gold and Classic Credit Cards. The card has a 750 and 1000 rupee joining and annual costs, respectively. One bank assigns credit limits to customers in a very cautious manner. During its anniversary, the bank gives a discount on card payments.
9. Laxmi Bank
Visa credit cards are offered by Laxmi Bank. The joining fee is Rs 1000, as well as the annual fee. The writer has been using the card for the past four years, but neither the bank nor any of the facilities for a discount on the yearly cost have been made available. Bank cards are accepted for online payments in India as well, however, they have a 0.5% fee or Rs. 50, whichever is higher.
10. Prabhu Bank
In collaboration with Visa International, Prabhu Bank offers credit cards. The card has a joining and yearly charge of Rs. 1000 and Rs. 500, respectively. With a select group of vendors, Bank has pushed the Buy Now and Pay Later program.
11. Everest Bank
Only lately has Everest Bank started to provide credit cards. One of the goods with the most aggressive pricing now available on the market is this one. Banks provide Visa Domestic Credit Cards, some of the least expensive in the market, with an annual charge of just Rs. 500 and a registration fee of Rs.
12. NMB Bank:
NMB Bank Provides credit cards with the NMB Bank Platinum and NMB Bank logos. The NMB Bank Platinum credit card is only available by invitation. The more than 1300 airport lounges located across the world are one of the distinctive selling factors of platinum cards. Typically, it is advantageous for those who must travel internationally.
Three times a year, a cardholder is entitled to free entry to the airport lounge for their transit duration, which is usually $50. Sanima Bank provides the same kind of lounge card to its privileged customers who use dollar cards.
The enrollment fee The NMB Bank Platinum credit card is free, with annual fees of Rs. 3500, or Rs. 14000 (all at once) for five years. The bank also provides the NMB Bank credit card, which has a 700 rupee joining charge and a 700 rupee annual fee or 3500 rupees paid once every five years.
13. Sanima Bank
One of the more restrained institutions in terms of credit card limits is Sanima Bank. Only banks require you to sign loan agreements (Karza Tamsuk) on Nepali paper for the credit card limit, which feels more like borrowing money from the bank than using any of the bank’s auxiliary services. It provides domestic Visa credit cards. The card has a 750 rupees annual cost in addition to a 750 rupee membership fee.
14. Nepal Bangladesh Bank
Customers of Nepal Bangladesh Bank NBB can get a Visa credit card from the bank. The card has some of the lowest joining and annual fees in the market at 600 apiece. These cards have a 5 lakh maximum limit and a 3-year maximum validity term.
15. Kumari Bank
The bank provides Visa credit cards. The credit card has an Rs. 1000 signup and yearly charge. In contrast to Siddhartha Bank, Kumari Bank provides UNO cards to its clients, who can use them to get discounts at various merchants. Shopping and dining near Durbar Marg will add a lot of advantages for the customer.
The above list comprises of top 15 best credit cards in Nepal. This is all about credit cards in Nepal. If you want to hold a credit card, you must open a bank account first. To guide you, we have written an article about how to open a bank account online in Nepal in just 4 steps.
Frequently Asked Questions FAQ?
1. What are the Banks with No Credit Card?
There are still no credit card products offered by Rastriya Banijya Bank NBB, Nepal Bank Limited NBL, Agriculture Development Bank ADB, NCC Bank, Nepal SBI Bank, and Civil Bank.
2. Eligibility for Holding a Credit Card in Nepal?
When applying for a credit card, a self-employed person must present a tax clearance certificate and an income verification letter from their employer, respectively. Through cross-selling, the bank also offers the credit card option to current borrowers of home and vehicle loans as well as salary account holders. Depending on the bank’s policy, credit card limits are typically between one and two times the monthly income.
3. How long is the Payment Period for Credit Card in Nepal?
All banks in Nepal offer the same payment cycle, which ranges from 15 to 45 days. This operates similarly to postpaid mobile services, which accrue a monthly bill based on usage. It sends you a bill at the end of the month and provides you with a grace period to pay before adding a penalty. Similar to this, if the billing cycle follows the English month, credit cards are billed 30 days after use.
On the 30th of the month, a person receives a bill for all the purchases they made between the 1st and 30th of the month. After receiving the bill, you have 15 days to make payment. the 15th of the next month. If a person pays the entire amount before the 15th of the following month, no interest charges are assessed; however, if s/he does not do so, bank-approved interest is added to the outstanding balance.
4. What is the Interest Rate on Credit Card in Nepal?
When compared to other products, interest rates on credit cards are among the highest. For a due sum that is not paid on time, the bank charges 2 to 2.5% per month or 24% to 30% annually. Therefore, unless it is impossible, it is advisable to pay the whole amount due on the due date in order to avoid the greatest interest rate.
5. What is Cash Advance on Credit Card?
The cash advance facility uses a credit card to make cash withdrawals. Credit cards are typically used to make payments to merchants for products and services. Cash withdrawals can also be made using it, though. A person is permitted to take up to 10% of the credit card limit in cash, for example. If the credit card limit is Rs. 100,000, the cardholder can withdraw a maximum of Rs. 10,000 from ATMs each month.
However, fees are extremely expensive; typically, the bank would charge Rs 100 or more in addition to 2% of the cash withdrawal. Therefore, it is not recommended to withdraw money from credit cards unless it is really required and urgent.