KATHMANDU, Aug 30: Banks and financial institutions (BFIs) have introduced attractive interest rates to woo buyers looking for bank financing to buy motor vehicles at the ongoing NADA Auto Show.
A snap survey conducted by Republica shows personal auto loan rates of BFIs range from 10.4 to 12.5 percent.
Most of the leading BFIs have set up their own stalls at the auto show. They are charging cheaper loan processing fees and shortened the loan process to attract more buyers.
Global IME Bank has offered the lowest rate of 10.4 percent, while Sanima Bank is charging the highest -- 12.5 percent. Similarly, BFIs Himalayan Bank Ltd, Machhapuchhre Bank Limited, Laxmi Bank Ltd, Bank of Kathmandu Ltd and Civil Bank Ltd are offering personal auto loans at 10.44 percent, 10.5 percent, 10.82 percent, 11.56 percent and 11.59 percent, respectively. Financing period ranges from five to nine years.
BFIs can finance up to 65 percent of the cost as per a recent directive issued by the Nepal Rastra Bank (NRB) in its Monetary Policy for Fiscal Year 2017/18.
Laxmi Bank is charging the lowest loan processing fee of only 0.5 percent, followed by Civil Bank and Global IME Bank which are charging 0.75 percent.
Sixteen brands of 4-wheelers, 19 brands of 2-wheelers and 6 brands of heavy commercial vehicles are participating in the annual event of the Nepali automobile industry. Most of these companies have offered attractive cash discounts. Honda, for example, is offering cash discounts ranging from Rs 200,000 to Rs 350,000 on its four-wheelers. Similarly, other brands like Isuzu, Datsun, Ford, Nissan and Ashok Leyland have offered cash discounts of Rs 500,000, Rs 100,000, Rs 300,000 and Rs 175,000, respectively.
Two-wheeler brand KTM has offered cash discount of Rs 7,000, while Suzuki has announced cash discounts of Rs 5,000 on bikes and Rs 7,000 on scooters.
Similarly, Mahindra is providing Rs 150,000 cash discount as well as 10 gram cold coin free of cost on its earthmovers.
The NADA Auto Show will continue till September 3.