Auto Loan

Common features of Auto Loan

• Quick loan processing with simplified documentation.
• Flexible Repayment Schedule: Monthly (EMI) or quarterly (EQI) basis.
• Fast approval process.
• Affordable interest rates and charges
• Facility available in all branches.
• Flexible tenure
• Counseling to help better financing by our Relationship Managers throughout the process.

Auto Loan Eligibility criteria 

• The Age of applicant/co-applicant should be minimum 21 years at the time of loan origination and maximum 65 years at the time of maturity.
• All individuals having a sufficient level of income to repay EMIs.
• Salaried individual - Should be in permanent service.
• Self Employed individual – Business should be at least 2 years in commercial operation.

Documents Required for Auto Loan

Identification

• 2 Passport size photos of applicant
• Photocopy of citizenship certificate/passport of Applicant & guarantor
• Photocopy of Tax/PAN/VAT certificate along with registration certificate
• Photocopy of Land ownership certificate if required
• Residence/business visit report

Proof of Income

• Salary Certificate
• Photocopy of contract agreement between applicant and his/her employer
• Photocopy of Rent Contract if any
• Photocopy of audited Financial Statements in case Firm /Company’s income is considered
• Self-declared of income
• Others if any

Vehicle-Related Documents

• Quotation of vehicles.
• VAT bill of the vehicle.

Others

• Loan application form duly filled and signed in a standard format of the Bank.
• Name of the family members.
• Current account of the applicant/borrower.
• In case of availed loan, loan statement from other banks and financial institutions.
• Net worth declarations if required.
• Multiple banking declarations.
• Other documents stipulated by the Banks from time to time.

Auto Loan Common Fees & Charges

• Processing Fees: This is a one-time fee charged by the lender for processing your home loan application. It covers the administrative costs of evaluating your application and conducting background checks.
• Title and Registration Fees: These fees cover the cost of transferring the vehicle title and registering it with the appropriate authorities.
• Prepayment Charges: If you decide to repay the loan before the end of its tenure, banks might charge a prepayment penalty. Some banks allow prepayment without charges, while others impose fees if the loan is prepaid within a specific period.
• Late Payment Fees: If you miss an equated monthly installment (EMI) payment, the lender can impose a late payment fee.
• Insurance Premiums: Banks often require borrowers to maintain comprehensive and collision insurance coverage on the financed vehicle. The cost of insurance is not a fee directly charged by the bank, but it's an additional cost you need to consider.

Common use of Auto Loan in Nepal 

• To purchase Vehicles for private or commercial use.
• To Purchase of used vehicles
• Auto loans are also used to purchase vehicles for individual firms, partnership firms, or companies registered with the relevant agencies.

Auto Loan Do's and Don't Table