Kathmandu. Stakeholders have stressed on risk management, insurance claims and easy loan flow as the flow of credit in auto financing has increased. They were speaking at the ‘Naima Mobility Dialogue’ organized by Nepal Automobile Importers and Manufacturers Association (NAIMA) on the sidelines of ‘Naima Nepal Mobility Expo 2026’ on Thursday.
Satyendra Subedi, director of Nepal Rastra Bank, said that after the global crisis of 2007/08, the loan-to-value ratio was maintained not only by the capital of the banks. “This is the case in Basel as well, so we have arranged for a loan-to-value ratio. In the beginning, the loan-to-value ratio for hire purchase loans was 50 percent, but now it is 80 percent for EVs and 60 percent for ICE cars,” he said. The loan-to-value ratio is also important to be safe. ‘
He said that this is necessary as the vehicle importers, borrowers and lenders will be in trouble tomorrow due to the loan default. He said, “The matter of changing the loan-to-value ratio depends on the state. It also depends on the thinking of the state. There may be change. He said that the green financing of EVs has made the loan-to-value ratio somewhat easier.
He said that it should be understood that auto loan and hire purchase loan are different. He clarified that mobile phones and household items are also going in such loans, so the difference should be understood. He said that out of the total loan of Rs 60 trillion, Rs 142 billion is part of the higher purchase loan. He said that the number of hire purchase loans has increased by 10 percent compared to the previous year.
“There is less risk as the bad loans are less and the banks are ready to lend with a small margin,” he said. Subedi said that there is no risk in the credit bubble in auto loans. “The NRB is alert that problems in one sector will affect all sectors,” he said.
Sunil Ballav Pant, Chief Executive Officer of NLG Insurance Company, said that there is a problem in claiming auto insurance. He said that it would be easier once you understand the evidence and process as it is the basic principle of insurance claims. He argues that the problem of insurance claims is due to this understanding.
He said that it would be easier to provide accurate details of the damage and documents to prove the evidence as it has to be settled in accordance with the Insurance Act. “It’s maturing now,” he said. What the Insurance Authority has done is to give instructions that the payment can be made quickly. We need to put it on the dashboard to see where this process has gone now,” he said.
He said that there is no insurance as there is no risk of household items. He said that except for vehicles and mobile phones, there is no insurance on household items. He said that only 50 percent of the depreciation will be deducted on the battery in EV vehicles.
Speaking at the Naima Mobility Dialogue, Samir Thakur, Chief Executive Officer of Hulas Finserv Hirepurchase Company said that Nepal Rastra Bank has allocated areas where the Hire Purchase Company can provide loans. He said that the Hire Purchase Company is also providing loans for vehicles and household goods.
He said, “Our target group is the customers who cannot reach the banks. Our goal is to provide loans to small loan customers. “These companies have been providing loans to us by taking loans from banks and so far they have disbursed loans worth Rs 40 billion,” he said. Of the last loan, 80 per cent has been on vehicles and 20 per cent in mobile. ‘
He said that these companies also provide loans to those who have completed the process of the bank. He said that the hire purchase company would disburse the loan within a few hours. “Sixty per cent of hire-purchase loan borrowers are below 40 years of age,” Thakur said.
Speaking at the program, Raja Aryal, Chief Marketing Officer of Global IME Bank, said that people with stable income are taking hire-purchase loans. He said that the average age to buy a car was 43 in the past, but now it is less. “Currently, 60 percent of the borrowers are below 40 years of age. There are also a significant number of women. ‘
According to him, although Kathmandu has the highest number of loans, it is becoming decentralized. He said, “We are expanding the market to cities outside Kathmandu as well. He said that students who have a steady source of income can also ride in a car.
He said that it would be easier for banks to lend money to hire purchase companies. He said that this will also pass the risk of the banks. He said that if all the documents are completed, the banks can disburse the loan the next day.
