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As Dashain approaches, several banks in Nepal are offering attractive auto loan schemes, providing prospective car buyers with a golden opportunity to finance their dream vehicles at competitive rates. Whether you're looking to purchase a brand-new petrol vehicle or an electric car, these banks have enticing offers to make your festive season even brighter.What is an Auto Loan?An auto loan is a financial product designed to help you purchase a vehicle by borrowing money from a bank or financial institution. You agree to repay the loan through monthly installments, which consist of both principal and interest. Auto loans typically come
with two types of interest rates: fixed and variable.Fixed vs. Variable Interest RatesWhen choosing an auto loan, it’s essential to understand the difference between fixed and variable interest rates. Fixed rates remain constant throughout the loan tenure, providing stable monthly payments. In contrast, variable rates fluctuate based on market conditions, potentially offering lower rates when the bank’s base rate drops.If you're considering eco-friendly electric vehicles (EVs), some banks offer special interest rates, which are often lower than those for petrol or diesel-powered vehicles.Key Auto Loan Offers for DashainHere’s a breakdown of top banks in Nepal offering attractive auto loan schemes this Dashain:BankFixed Interest RateVariable Rate PremiumMaximum Loan TenureElectric Vehicle FinancingRastriya Banijya Bank7.77% (Festive Offer)N/AUp to 7 yearsUp to 80%Laxmi Sunrise Bank8.99% to 11.99%1% to 3% over base rateUp to 15 yearsSpecial rates availableMachhapuchhre Bank10% (up to 5 years), 11% (5-10 years)1% to 3% for personal loansUp to 10 yearsN/AGlobal IME Bank10.49% to 11.49% (up to 5 years)3.50% over base rateUp to 5 yearsN/AKumari Bank8.99% (up to 5 years)1% to 3% for personal loansFlexibleN/ASiddhartha Bank10.75% (up to 5 years), 11.25% (5+ years)3% over base rateUp to 7 yearsN/ACitizens Bank10.50% (up to 5 ears)3% to 4% over base rateUp to 10 yearsN/ANabil Bank8.25% (for 5 years), 8.49% (for 7 years)2% to 4% for personal loansUp to 7yearsN/ASpotlight: Rastriya Banijya Bank’s Festive OfferRastriya Banijya Bank (RBB) is offering an exclusive auto loan scheme for Dashain under its ‘Festive Offer of Vehicle Loan’ initiative. The bank’s fixed interest rate of 7.77% is one of the most competitive on the market. Here’s a quick summary of the offer:Loan Amount: Up to NPR 10 millionLoan Tenure: Up to 7 yearsProcessing Fee: 0.50%Electric Vehicle Financing: Up to 80% of the vehicle’s pricePetrol/Diesel Vehicle Financing: Up to 50%Loan Processing Time: Decision within 7 working daysComparison of Key Auto Loan Rates for Electric VehiclesElectric vehicle buyers can take advantage of preferential interest rates this festive season. Here’s a comparison of EV financing options:BankEV Interest Rate (Fixed/Variable)Maximum Loan TenureNotesRastriya Banijya Bank7.77% (fixed)Up to 7 years80% financing of vehicle priceNabil Bank8.25% (for 5 years), 8.49% (for 7 years)Up to 7 yearsSpecial EV rate: 1%-3% premiumHow to Apply for an Auto LoanApplying for an auto loan is straightforward, but comparing interest rates is crucial to finding the best deal. With Saral Banking Sewa's Auto Loan Comparison Tool, you can:Compare interest rates across multiple banksCalculate EMIs to estimate your monthly paymentsReview eligibility criteria and required documentsExplore the best auto loan options and apply directly through Saral Banking Sewa's Auto Loan Page.Auto Loan Eligibility CriteriaAge: Minimum 21 years at the time of loan origination and maximum 65 years at the time of loan maturity.Income: Applicants should have a sufficient income level to repay EMIs.Salaried Individuals: Must be in permanent service.Self-Employed Individuals: Business should have been in operation for at least 2 years.Documents Required for Auto LoanIdentification: 2 passport-size photos, citizenship certificate/passport of the applicant & guarantorProof of Income: Salary certificate, rent contract (if applicable), audited financial statements (for businesses)Vehicle Documents: Vehicle quotation, VAT billAdditional Documents: Loan application form, family member details, multiple banking declarations, and more as required by banksAuto Loan Common Fees & ChargesProcessing Fees: One-time fee charged by the bank to cover administrative costs.Title & Registration Fees: Costs for transferring the vehicle title and registration.Prepayment Charges: Some banks may impose a fee for early loan repayment.Late Payment Fees: Charged if you miss an EMI payment.Insurance Premiums: Comprehensive and collision insurance is often required by banks.ConclusionDashain is the perfect time to take advantage of the fantastic auto loan offers available in Nepal. Whether you’re looking to buy a petrol, diesel, or electric vehicle, there’s a loan package suited to your needs. Use Saral Banking Sewa’s Auto Loan Comparison Tool to find the best deal for your next car and drive home your dream vehicle this festive season.
