Kathmandu. The National Bank has amended the Policy and Procedures for Approval of Hire Purchase Loan Companies, 2070. The National Bank has amended the legal provisions to increase the minimum down payment for electric vehicles to 40 percent.
Through the review of monetary policy, the National Bank had issued a circular to banks and financial institutions to finance only 60 percent of all types of electric vehicles. But hire purchase companies were financing only 80 percent. Now the National Bank has amended the law to provide only 60 percent finance to hire purchase companies.
It has been amended in Section (10) c of that provision to provide loans only up to 60 percent. In (c) of that section, it is mentioned that the company will have to provide a maximum loan of 80 percent of the value of the collateral while disbursing the loan.
This provision is amended to read, ‘However, while disbursing a loan for the purchase of vehicles, the Loan to Value Ratio of the vehicle shall be maintained at a maximum of 60 percent for the following vehicles.’ Including (a) all-purpose electric vehicles and (b) other personal vehicles for private purposes.
Now, according to this provision, hire purchase companies will be able to provide only 60 percent of the loan for the sale of all types of electric vehicles. Earlier, only hire purchase companies were using this facility. Now this path has been blocked by the National Bank.
This is the amendment
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