Nepal Central Bank Increases Loan Limit for Electric Vehicles

Kathmandu. Up to 80 percent loan can be obtained to buy electric public transport vehicles. The Nepal Rastra Bank has issued a directive allowing banks and financial institutions to provide loans up to that limit.<

Until now, there was a provision to provide loans up to only 60 percent for the purchase of all types of vehicles. The limit of 80 percent was set only for replacing commercial transport vehicles damaged in industries and business establishments directly affected by the Gen Z movement.<

Adding to this provision, the central bank has increased the loan limit for large electric passenger vehicles. 'For large electric passenger vehicles used as public transport and for providing loans to replace commercial transport vehicles damaged in industries and business establishments directly affected by the Gen Z movement, the loan-to-value ratio can be maintained up to 80 percent,' the central bank's directive states.<

This means if a person buys an electric vehicle worth 1 crore rupees, they will only need to invest 20 lakh rupees initially, whereas previously they had to invest 40 lakh rupees. Although electric vehicles are widely accessible for small vehicles, large public transport vehicles have not yet become sufficiently electric.<