NADA Auto Show 2024: Major banks offer special financing deals

Kathmandu, August 27 — The Grand Nada Auto Show 2024 has begun in the capital, starting from Tuesday. Organized annually before Dashain, this year’s auto show, held from August 27th to September 1st, is managed by the NADA Automobile Association of Nepal.

The event features a wide range of vehicles, including two-wheelers, four-wheelers, and commercial vehicles. This year's show highlights the performance of electric vehicles (EVs), with importers showcasing both budget-friendly and premium electric models manufactured in India and China.

Featured vehicles at the show include the Tata Punch, Lip Motors C-10, Zikar X, Cute-04, Xpeng G-6, GAC Avon-V, MG ZS EV, MG Cyberster, Smart Haz 3, Nami E-One, BYD Otto-3 Black, Suzuki Swift, and new models like Deepal S-07, HEV-300, and Mahindra XUV 3XO.

Most of these vehicles are produced in China, a few in India. Prices range from a minimum of 2.2 million rupees to a maximum of 17 million rupees. Companies are offering discounts and special promotions for Dashain and Chhath festivals. Customers can also benefit from special facilities for purchasing and booking vehicles, depending on the model and product.

Additionally, banks and financial institutions have introduced various schemes to facilitate vehicle purchases at the auto show.

At the NADA Auto Show, eight banks and financial institutions have set up stalls to provide 'on-the-spot' financing options for customers. These include major commercial banks such as Nabil Bank, Global IME Bank, Nepal Investment Mega Bank, Machhapuchchhre Bank, Sanima Bank, Lakshmi-Sunrise Bank, and Agricultural Development Bank, as well as Mahalakshmi Development Bank of 'B' category. The banks are offering vehicle loans with interest rates ranging from 7.99 percent to 9.99 percent.

Global IME Bank

Global IME Bank has established a stall within the main exhibition hall. The bank is providing financing advice to potential buyers and offering auto loans with a minimum interest rate of 7.99 percent for electric vehicles (EVs) and 8.49 percent for internal combustion engine (ICE) vehicles. This special rate is available only from August 27 to September 1 during the NADA Auto Show, with loans processed within 15 days.

Nabil Bank

Nabil Bank is offering the same interest rate for both electric vehicles (EVs) and internal combustion engine (ICE) vehicles. The bank has set fixed interest rates of 8.25 percent for a 5-year term and 8.49 percent for a 7-year term. In addition to easy financing facilities for auto loans, the bank will charge a 0.75 percent service fee from customers. Kabin Shrestha, a representative of the bank, also mentioned that the bank will provide fixed interest rate loans for up to 10 years under the ‘Nabil Dhukka Home Loan’ scheme, roughly translated as ‘Secure Your Future with Nabil Bank Home Loans', with interest rates ranging from 7.99 percent to 8.49 percent.

Nepal Investment Mega Bank (NIMB)

Nepal Investment Mega Bank has given special priority to EVs in its auto loan offerings. At the NADA Auto Show, the bank is offering loans for EVs at a base rate plus a 1 percent premium. For other petroleum vehicles (ICE), the premium is 2 percent. Sushila Shrestha, the bank’s relationship manager, stated that the bank provides affordable loans with simple installments and charges only a 0.25 percent service fee. Although this special loan policy is being promoted during the Auto Show, it will remain available through the Dashain, Tihar, and Chhath festivals.

Sanima Bank

Sanima Bank is offering an interest rate of 8.49 percent on auto loans and has introduced a special loan policy for electric vehicles under the slogan 'Go Electric, Go Green'. The bank is providing up to 80 percent financing for electric vehicles, requiring only a 20 percent down payment from customers. This offer is valid for a loan period of up to 7 years and will be available until Chhath.

Machhapuchchhre Bank

Machhapuchchhre Bank has introduced a 6-year loan term for EVs and an 8-year term for ICE vehicles. The interest rate for both types of vehicles is set at 9 percent, with a service charge of only 0.25 percent. The bank will finance up to 50 percent of the cost for ICE vehicles and up to 70 percent for EVs. The bank offers loans ranging from 50,000 rupees to 1.5 million rupees, which can be processed at all branches.

Lakshmi Sunrise Bank

Lakshmi Sunrise Bank is offering loans exclusively for EVs, with a premium of 1 percent over the base rate of 9.25 percent. The bank will finance up to 80 percent of the cost for EVs over a 7-year period. This facility is available until the end of Dashain, Tihar, and Chhath. Customers taking out loans will also receive free visa and ATM cards, as well as access to I-Bank and mobile banking for one year.

Agricultural Development Bank

Agricultural Development Bank, a government bank, is offering auto loans with a minimum interest rate of 7.99 percent for EVs and 8.99 percent for ICE vehicles. The bank provides loans for up to 7 years, with options for both stable and unstable interest rates. It will finance up to 80 percent of the vehicle purchase. This plan is available until the end of current fiscal year.

Mahalakshmi Development Bank

Mahalakshmi Development Bank has announced an annual interest rate of 9.99 percent on auto loans. The bank, which is competing with larger commercial banks, has given special emphasis to EVs. It has introduced a loan investment offer called 'Zindagi Sararara...aba Motor Gadima', roughly translated as ‘Life Runs Smoothly with a Motor Vehicle,' designed to provide simple and accessible financing options.