Nepal’s banks and financial institutions had Rs 143.12 billion in hire-purchase loans for vehicles and equipment by the end of Shrawan. The figure was up 0.06% from Rs 143.03 billion at the end of Ashadh, Nepal Rastra Bank’s latest data shows.
The movement was different across lender groups.
Commercial banks held the largest share, but their hire-purchase portfolio slipped 0.06% to Rs 128.84 billion from Rs 128.92 billion in Ashadh.
Development banks moved in the opposite direction. Their lending rose 1.64% from Rs 10.86 billion to Rs 11.04 billion.
Finance companies recorded a smaller decline. Their hire-purchase loans fell 0.36% to Rs 3.23 billion, compared with Rs 3.24 billion a month earlier.
For vehicle buyers, the figures show that development banks are expanding their role in auto finance even as lending from commercial banks remains almost unchanged. Loan approval, interest rates and down-payment rules will still vary by institution.
Development banks are currently showing the strongest month-on-month increase in vehicle financing.
Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.