Banks Introduce Attractive Offers on Vehicle Loan Schemes, Including Low Interest Rates and ‘Swap’ Facility
News Summary with Editorial Review: The high public participation in Naima Nepal Mobility Expo 2026 is expected to boost demand for auto loans at banks. Global IME, NMB, and Siddhartha Bank have launched special auto loan schemes with concessional rates on the occasion of the expo. Customers purchasing electric vehicles will benefit from discounts on processing fees and interest rates slightly above the base rate. Reported on 28th Shrawan, Kathmandu.
While banks face challenges in expanding loan portfolios, the auto sector has provided some hope. Since the expo’s commencement on Tuesday, widespread public involvement and inquiries at banks regarding auto loans indicate an improving loan demand. Several banks have set up stalls at the expo, making it common for visitors who have chosen preferred vehicle models to approach banks for financing details. Global IME, NMB, and Siddhartha Banks are actively participating in the event.
Auto loans constitute a significant segment of banks’ lending portfolios. Consequently, all banks and financial institutions have introduced various hire-purchase or auto loan plans. At Naima Expo, banks have focused on offering comparative loan information and concessional rates to customers seeking vehicle financing. Manjil Bista, a representative of Global IME Bank, stated that participation in Naima Expo has consistently increased over recent years.
She added that the number of visitors coming to bank stalls to discuss loan plans has risen significantly compared to previous auto expos. Representatives from NMB and Siddhartha banks also reported higher foot traffic similar to that of vehicle stalls. The trend of purchasing vehicles through bank financing is growing compared to outright cash purchases at home.
Banks are offering auto loan schemes with a slight premium added above the base interest rate. Additionally, they have provided discounts on processing fees to simplify the loan process. Global IME Bank has introduced a special auto loan plan during the Naima Auto Expo, offering loans on new vehicle purchases with a minimum premium of 0.5% above the base rate. For customers buying new electric vehicles at the expo, the bank offers a fixed interest rate plan of 5.99% for three years.
After three years, up to an additional 2% premium may be applied to the loan. The bank has also initiated an auto loan swap service, allowing customers to transfer vehicle loans taken from other banks or financial institutions to Global IME Bank after revaluation. This facility is not applicable to vehicles older than three years. Siddhartha Bank has also unveiled a special vehicle loan scheme at Naima Nepal Mobility Expo 2026, offering loans with only a 0.5% processing fee and a 1% annual premium over the base rate.
Banks and financial institutions are permitted to charge a maximum service fee of 0.75%. This promotional scheme will remain effective throughout the expo period, which ends on Ashar 31. NMB Bank has introduced a special plan for electric vehicle purchases, applying a 0.5% premium above the base rate. Customers can conveniently apply at the NMB Bank stall during the expo or at any of 198 branches nationwide.
Each bank and financial institution sets their own base rates and premiums when operating auto loan schemes, resulting in differences in loan limits and interest rates among institutions. The central bank has mandated lending limits with a focus on reliable consumer finance. Accordingly, loans can be provided up to a maximum of 60% of vehicle value for electric and private vehicles. For large public transport electric vehicles and vehicles used in industrial and commercial sectors, replacement loans may extend up to 80%. As of Jestha last fiscal year, banks and financial institutions had disbursed auto loans exceeding NPR 150 billion.
The expo showcases over 55 brands, including electric, diesel, and petrol-engine vehicles, as well as automobile-related products and services.
