Owning a four wheeler might seem a wonderful yet far-fetched dream. The good news now is that banks are coming up with attractive auto loan schemes with impressive interest rates so that possessing a car would not seem impossible.

As the prevailing credit crunch in the domestic market has improved, Nepal Rastra Bank has eased the cap on auto loans from July 16, 2017. This has brought some relief to those planning to purchase vehicles in the new fiscal year 2017-2018. It has also sparked anticipation in auto dealers who had been witnessing downfall in sales of vehicles since past few months. Currently, most of the banks offer 11 to 12 per cent interest rates on auto loans.

“Impressive discounts offered by auto dealers during the festive season are responsible for gradual increase in auto sales lately,” says Sushen Lal Shrestha, Consumer Lending Manager at NMB Bank. He further mentions that banks are coming up with new schemes for Dashain and Tihar. The banks have introduced a fixed interest rate of 10.99% per cent and fixed EMI for a five-year period which protects customers against unexpected EMI increase which is something new for the entire auto industry. The requirements to apply for auto loan in most of the banks are quotation of vehicle, income source document and identification document.