Kathmandu. Representatives of NADA Automobiles Association of Nepal called on newly appointed Governor Dr Bishwanath Poudel today.
A nada delegation led by its chairman Karan Chaudhary called on Governor Poudel and discussed in detail various issues related to the automobile sector related to Nepal’s monetary policy.
During the meeting, Chairman Chaudhary presented five-point suggestions for immediate implementation for the overall improvement of Nepal’s automobile industry.
Lack of access to finance, practical constraints on loans in electric and premium vehicles, inconsistencies in credit policy and the need for regulation for a fair finance system were discussed seriously during the meeting.
Key suggestions presented by NADA:
1. Practical implementation of credit flow for the automobile sector:
Although it has been a year since the Rastra Bank decided to open auto loans, the flow of credit from banks has practically stopped. Stating that this is affecting the entire industry, NADA has demanded clarity and certainty for immediate implementation.
2. Loan-to-Value -LTV ratio should be made to a minimum of 70 percent:
Since the current 50 per cent LTV limit has created hurdles for both customers and businesses, it was urged to increase LTV for the entire automobile segment to a realistic level.
3. Debt Service to Gross Income Ratio bring flexibility:
The current strict DSR policy has made it difficult for middle-class and salary-based customers to get loans and stressed the need for practical flexibility in this regard.
4. Bring targeted loan plans for EV and Hybrid vehicles:
Special credit facilities, refinancing and incentive programs for electric and hybrid vehicles are needed to support the country’s sustainable energy and environmental goals.
5. Tighten regulation to ensure fairness in the financial system:
Nepal Rastra Bank (NRB) has demanded strict regulation to stop the practice of forcing customers to take loans only from certain dealer-affiliated banks or creating hurdles on the competitive institutions.
During the meeting and discussion, Chairman Chaudhary said that the automobile industry is directly related to Nepal’s revenue, employment, technology transfer and sustainable development goals.
In the discussion, NADA Vice-President Rajan Babu Shrestha proposed to conduct an interaction program with the support of Nepal Rastra Bank on the issue of formulating long-term economic policy. At the end of the discussion, Governor Dr. Poudel said nada’s suggestions would be taken seriously and assured that necessary issues would be discussed and coordinated.
Nada Secretary Bikram Singhania, Treasurer Milan Babu Malla, Joint Treasurer Pankaj Agrawal, Central Working Committee members Yamuna Shrestha and Dipenda Kumar Mishra were also present in the meeting.
प्रतिक्रिया दिनुहोस्