Nepal Bank Limited Nepali
Nepal Bank Limited

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Loan / Advances

Consumer Loans

Auto Loans

This loan is provided for:

  • Purchase of new vehicles
  • Purchase of old / used vehicles (For Private use only)
  • Swapping (For Private and Commercialuse use)
Branches:

Auto Loan is available from following branches:

City Branch City Branch
Kathmandu Kathmandu Banking Office Lalitpur Gabahal
Bhaktapur Bhaktapur Branch Banepa Banepa Branch
Birgunj Birgunj City Office Narayangadh Narayangadh City Office
Hetauda Hetauda City office Janakpur Janakpur City Office
Biratnagar Biratnagar City Office Itahari Itahari Branch
Dharan Dharan City Office Pokhara Pokhara City Office
Butwal Khasyauli Branch Bhairahawa Siddharthanagar Branch
Nepalgunj Nepalgunj City Office Dhangadhi Dhangadhi Branch


Eligibility:

The criterion for taking auto-loans is as follows.

  • The loan is provided to Nepalese Citizens only.
  • This is provided to any salaried and self-employed individuals and companies.
  • The loan is provided to any salaried and self-employed individuals and companies having regular and stable source of income.
  • All borrowers and guarantors should not be enlisted in “Black List” of NRB.
  • In case of individuals, the borrower must be at least 21years and should not exceed 60 years at the time of maturity. The retirement age must be more than the tenure of the loan.
  • 3 years work experience is needed for salaried individuals.
  • The company / firm should be in operation since last three years.
  • The person taking loan for the company / firm is to be authorized by the company / firm as appropriate.


Parameters:

Maximum Loan Amount Rs. 2,500000
Minimum Loan Amount Rs. 200000
Loan portion Private (new) Private (Used) Commercial Swapping from other financial institutions
Up to 80% of quotation price quotation price Up to 70% of valuation price Up to 80% of quotation price of the dealer (plus up to 80% of the quotation price of the body builder where body needs to be built up). Up to 100% of remaining loan
Tenure   Private (new) Private (Used) Commercial Swapping from other financial institutions
Minimum years 2 2 2 2
Maximum years 7 4 5 6
Interest Rate (%) Tenure (Years) Private (new) Private (Used) Commercial Swapping from other financial institutions
Up to 7 7 - - -
Up to 6 - - - 7
Up to 5 6.5 - 9 -
Up to 4 - 7 - -
Up to 3 - - 9 6.5


Processing Fee:

1% of the financed amount shall be charged upfront at the time of submission of loan application with necessary documents. The fee shall be refunded if the loan is not approved.

Prepayment Fee:

2% prepayment charge on the prepaid amount if prepayment is made within 1/3 of loan period. However, no prepayment fee will be charged if paid after maturity of 1/3 of the loan period.

Documents required:
Y = Required; N = Not Required; O = Optional
Documents Self Employed Salaried Company/Firm
Identification
2 Passport size photo of applicant
Y
Y
Y
Photocopy of Citizenship Certificate/ Passport (Applicant & guarantor)
Y
Y
Y
Photocopy of valid Driving License
O
O
O
Photocopy of Registration Certificate
N
N
Y
Photocopy of Operating Approval
O
O
O
Photocopy of Tax/PAN/VAT certificate
N
N
Y
Proof of Income
Original Salary Certificate not more than 10 days old
N
Y
N
Photocopy of Contract agreement
N
O
O
Photocopy of Rent Contract
O
O
N
Original Bank Statement (Past 3 months)
O
O
O
Photocopy of Financial Statements (Past 3 years)
Y
N
Y
Others
Original Quotation of vehicle and from the body builder if body needs to be built up. Fax copy of quotation mentioning applicant’s name received from dealer is also acceptable.
Y
Y
Y
Photocopy of Land ownership certificate (Lalpurja)
Y
Y
N
Photocopy of Memorandum and Articles of Association
O
N
Y
For used vehicles only
Original Invoice of Used car showroom / certified copy
Y
Y
Y
Valuation report of vehicles from valuators
Y
Y
Y


Notes:

  • All companies are required to submit their board resolution authorizing to execute loan/security documents with the bank to avail credit facility.
  • Corporate guarantee should be supported by resolution of Board of Directors.
  • Original certificates should be presented for verification while submitting this form.
  • Salary certificate must be in the office's letterhead having seal and must contain net salary, your designation, years of service, date of retirement or expiry of contract and type of employment (permanent or contract). It should be signed along with the name and designation of the signatory.
  • The bank can demand any additional documents at its own discretion.
  • For commercial vehicles, detail breakdown of the income from and expenses of the vehicle (scheme) is necessary.
  • In case of swapping loan, loan statements from current bank / financial institutions is required.


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Contact
Nepal Bank Limited
Dharmapath Kathmandu
(Head Office)
Tel.: +977 1 422 2397
Email: info@nepalbank.com.np

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Last Updated - 21st January, 2008
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