NIC Bank launches new products

KATHMANDU, SEP 14 -

NIC Bank on Thursday launched two new banking products—Pre-approved Auto and Home Loan and Auto Balloon Financing. According to the bank, the products were designed targeting at increasing the outreach of the general public to financing on automobile and housing.

Claiming that the products were the first of their kind in Nepal, the bank said they would boost the slumping automobiles and realty transactions.

According to the bank, in the pre-approved system of lending, the bank decides about the loan amount and interest rate for customers based on their income. This allows customers to choose the house and automobile without any hassle or doubt about their ability to get finance.

“Such a lending helps those who are in dilemma on how much loan amount they are qualified for while purchasing land, apartment or vehicles,” said NIC CEO Sashin Joshi.

The bank said it will prescribe the loan amount and the interest rate to its customers on the basis of their income status and the period over which they are willing to pay back. “The back up of the bank is expected to boost consumers’ confident as well as enhance the business of the automobile and realty sectors,” said Joshi.

Under the scheme, the interest rate which the bank charges on auto loan will be a minimum of 11.49 percent, while that on the home loan will start from 10.99 percent. After the pre-approval is made on the loan, the bank plans to grant up to 90 days to its customers to decide on appropriate automobiles, land and houses which they wish to buy.

Similarly, the ‘Auto Balloon Financing’, which the bank claims would reduce financial burden, allows customers to pay off 30 percent of the total loan amount within four years from the date on which the loan is sanctioned. “The buyers have to settle only 70 percent of the total loan in equal monthly installments,” said Joshi.

Source: The Kathmandu Post