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Auto loan: Which bank is the cheapest? Here are the interest rates (list)

Nepalkhabar

 |  Kathmandu

The interest rate of vehicle loan is the cheapest in Agricultural Development Bank and the highest in Lakshmi Bank.

Commercial banks have announced the interest rate by reducing some percent on vehicle loans.

Banks are giving loans on private diesel/petrol vehicles, commercial vehicles including buses, trucks and electric vehicles at different interest rates.

Banks provide vehicle loans under 2 headings with fixed and variable interest rates. 

The term of fixed interest rate is 1 year, 5 years and 7 years.

The variable interest rate may vary every 3 months based on the bank's base rate. 

Earlier, although the commercial banks set the interest rate by adding a premium of up to 6 percent to the base rate, now they will be allowed to charge only 5 percent of the base rate. 

The base rate of banks changes every 3 months.

For example, the base rate of Global IME Bank is 10.73 percent. 

A customer buying a new car will have to pay an interest rate of 11.99 to 13.99 percent if he takes auto loan from Global IME at a fixed interest rate. 

It charges interest based on the term. 

An increase or decrease in the base rate does not make any difference to such interest rate.

However, if you take a loan from Global IME Bank at variable interest rates, you will have to pay at least 2.50 percent to 5 percent more interest on the base rate of 10.73 percent.

Businessmen said that even though all banks have made vehicle loans a product, they have not provided loans.

Dhruv Thapa, president of NADA Automobiles Association of Nepal, said that banks are not providing vehicle loans because of the risk burden.

He said that due to the increase in liquidity in the bank, there was flow of loans in other sectors, but there is no flow of loans in the auto sector.

"Some banks have given loans for electric vehicles", Thapa told Nepal Khabar. "It is like zero in a commercial vehicle."

He said that if the Rastra Bank reduces the risk burden in vehicle loans, the banks will provide loans. According to the data of the Central Bank, hire purchase loans decreased by 9.9 percent in January.

Officials of the National Bank of India say that the risk burden of the auto sector has been increased in order to invest the loan flow in the productive sector.

"Rashtra Bank's policy is to provide more credit to the productive sector," executive director said, "Banks are in a position to provide credit if they want. It is a matter of banks that do not give loans."

Mahesh Dhakal, Deputy CEO of Nepal Investment Mega Bank, said that investments are being made in green energy when the liquidity situation is somewhat easier.

"As liquidity becomes easier, loans are being given to electric vehicles", said Dhakal, "It is not necessary to give to other vehicles." Banks give loans based on need.

Cheap vehicle loans in government banks
On the other hand, when the base rate of the government bank is low, it is possible to get a vehicle loan at a low interest rate.

Even though the base rate of Agricultural Development Bank is high, it has a policy to charge less in premium.

Accordingly, the base rate of Agricultural Development Bank is 11.06 percent.

Customers taking variable rate loans can get loans with an additional 2.5 percent on the base rate.

But on the other hand, those who take fixed vehicle loans have to pay 11.06 percent interest.

The base rate of Rastriya Banijya Bank is 9.29 percent.

He has imposed a premium of only 4 percent on the base rate on car loans.

According to this, the Bank has imposed a premium of only 2.75 on the base rate for electric vehicle loans.

Interest on car loan for up to 7 years at fixed rate is 14.75 percent and on electric vehicle is 13.25 percent.

Nepal Bank Limited has provided vehicles to borrowers for 5 years at a base rate of 3 to 4.5 percent interest.

For electric vehicles, it is only 3 to 4 percent. Nepal Bank base rate is 9.9 percent.

The annual fixed interest rate is 12.50 to 13.50 percent.

13 percent in Everest and Sunrise, expensive in Lakshmi Bank

Nepal SBI Bank has taken up to 5 percent more on base rate for vehicle loans. The base rate of SBI is 11.17 percent. The bank says that the customer has to pay 13.5 percent when using Autoloan at fixed interest rate.

Cheap vehicle loans in government banks

On the other hand, when the base rate of the government bank is low, it is possible to get a vehicle loan at a low interest rate. Even though the base rate of Agricultural Development Bank is high, it has a policy to charge less in premium.

Accordingly, the base rate of Krishi Bikas Bank is 11.06 percent. Customers taking variable rate loans can get loans with an additional 2.5 percent on the base rate. But on the other hand, those who take fixed vehicle loans have to pay 11.06 percent interest.

The base rate of National Commercial Bank is 9.29 percent. He has imposed a premium of only 4 percent on the base rate on car loans.

According to this, the bank has imposed a premium of only 2.75 on the base rate for electric vehicle loans. Interest on car loan for up to 7 years at fixed rate is 14.75 percent and on electric vehicle is 13.25 percent.

Nepal Bank Limited has provided vehicles to borrowers for 5 years at a base rate of 3 to 4.5 percent interest. For electric vehicles, it is only 3 to 4 percent. Nepal Bank base rate is 9.9 percent. The annual fixed interest rate is 12.50 to 13.50 percent.

13 percent of Everest and Sunrise, expensive of Lakshmi Bank

Nepal SBI Bank has taken up to 5 percent more on base rate for vehicle loans. The base rate of SBI is 11.17 percent. The bank says that the customer has to pay 13.5 percent when using Autoloan at fixed interest rate.

Machhapuchhre Bank has fixed the interest rate for fixed vehicle loans at 14 percent for up to 5 years. It has been mentioned that up to 5 percent more will be charged on the base rate for loans that flow according to the interest rate that changes over time. The base rate of Machhapuchhre is 11.40 percent.

Similarly, Prime Commercial Bank has imposed an interest rate of up to 5 percent on the base rate on the purchase of commercial and private vehicles. The base rate of Prime Commercial is 11.34 percent. According to the bank, the borrowers have to pay interest of 14 to 15 percent for the fixed term of more than 1 year.

On the other hand, Everest Bank's vehicle loan interest rate is 13 percent for 7 years. An additional 4.50 percent has been fixed on the base rate for taking loans with variable interest rates over time. Everest Bank base rate is 9.86 percent.

Sunrise Bank's fixed vehicle loan interest rate is 13 percent. The base rate of the bank is 11.49 percent. According to the bank, the variable auto loan will take an additional 5 percent on the base rate.

Lakshmi Bank has charged an additional 5 percent interest on vehicle loans. Bank base rate is 11.08 percent. According to the bank, it has taken from 13.99 percent to 15.99 percent for fixed loans.

With a base rate of 10.85 percent, Sanima Bank has charged up to 14 percent interest on all types of fixed loans. Sanima charged 14 percent interest for 13 months, 14.5 percent for up to 2 years and 15 percent for up to 3 years.

Siddharth Bank offers auto loans at a base rate of up to 5 percent interest. He fixed the fixed interest rate at 13.50 per cent for up to 5 years and 14 per cent for more than 5 years. Siddharth Bank has a base rate of 10.71 percent.

Citizen Bank base rate is 11.45. The bank is providing vehicle loans for up to 8 years. It offers fixed interest loans for private vehicles at 14.50 per cent for up to 5 years and 14.75 per cent for up to 10 years. According to the Bank, 14.75 percent interest will be charged on commercial vehicles for up to 5 years.

 



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