From the history pages to the present, cars have been more like a necessity than a luxurious status and needs. Be it for our solo needs or as a family; automobiles have snatched a great deal in our life.

As far as the research goes, around 95% of Nepalese buyers look to opt for auto loan offers. Additionally, several financial institutions offer auto loan options, and different banks finance 80% of them.

Find the best interest rates for your auto loan.

Buying automobiles is an investment, and many people opt for an auto loan but have a high-interest rate. Moving on, it then results in high monthly EMIs.

What Are The Interest Rates For Car Loans?

Regarding auto loan offers, there are several understandings of the interest rates. One of the crucial rules for auto loans is the loan repayment terms. You may stumble across appealing offers such as smaller EMI amounts for a longer paying period.

However, even with the small EMI amount you calculate for years, you might be shocked by the final amount you will pay. Hence, selecting offers with a shorter loan repayment period is essential to help you save a lot of money in the long run.

Current Bank Interest Rates At A Glance

Most of the time, buyers are attracted when the initial payment is down in ready monthly installments. Nepal Rastra Bank has stated that all Class A commercial banks will be allowed to charge a service charge of up to 0.75 percent. In addition to that, no banks are not allowed to levy invisible costs in the name of service charges.

Below are some of the top banks with current interest rates and charges.

• Standard Chartered Bank Nepal (7.59% upto 7 years with 0.75% processing fees)
• NIC ASIA Bank (8.25% upto 8 years with 0.25% processing fees)
• Sanima Bank (8.25% upto 10 years with 0.50% processing fees)
• Rashtriya Banijya Bank (8.5% upto 5 years with 0.75% processing fees)
• SBI Bank (8.6% upto 7 years with 0.50% processing fees)
• Global IME Bank (8.99% upto 7 years with 0.75% processing fees)
• Himalayan Bank Limited (9.0% upto 7 years with 0.50% processing fees)
• Macchapuchhre Bank Limited (9.50% upto 10 years)

Indeed, auto loan offers have been a priority for the banks, and multiple development banks have also been aggressive in auto loans. Just a few years ago, some banks went way above the rates while going over and up to 9.98% to 10.75 %.

Look For The Perfect Interest Rate

Before looking for interest rates, do not jump right into the ones you see. Always compare the offers from several financial institutions before you devote yourself to one of them.

There is no standard interest rate for an auto loan in the market. Therefore, different interest rates vary from lender to lender. Altogether, even the slightest change in interest rates of the banks makes a massive difference in the amount you will need to repay.

Similarly, alongside the interest rates, you should also look for the minimum loan repayment terms. Apart from it, many banks also provide EMI calculators nowadays. It is for you to calculate the interest rate and decide the best-interested rate and loan for your car.

Moving on, you must also look for the processing fees and any other charges if the banks include them. Another vital factor to look for is the service charge and foreclosure penalties. That is why you should also look closely at the foreclosure agreements and the rates.

What’s Needed For Auto Loan?

After you snatch the perfect interest deal, specific documentation must be completed and verified. For that, you will initially have to showcase your credit record to fulfill the approval of a car loan.

Auto Loan Offers

Additionally, you will have to fill out the Know Your Customer (KYC) form that every bank keeps as the basic norm.

Eligibility Requirements:

• Should be Nepalese individuals and business units registered here
• Must be at least 21 years of age (as per citizenship certificate) at the time of submission of the loan application.
• Applicants should not be very old, so the contract can be terminated before age 70 or retirement.
• If the loan is in joint names, at least one of the borrowers should fulfill the above criteria.
• If the loan is to be taken under the business units, it must be registered in PAN/VAT.

Documents Requirements:

• Detailly filled KYC (Know Your Customer) form
• Two photographs of the applicant and guarantors with names and signatures on the back.
• Copy of citizenship certificate of the applicant, collateral owner/s, and guarantors.
• Copy of relationship certificate with the mentioned family members.
• Bank Statement of 6 months period.
• Copy of land ownership certificate
• Registration Documents & Tax Documents (for business units)
• Documentary evidence of income.
• Quotation of the vehicle with price, model, features, and details.