Planning to buy four-wheeler? Banks offering competitive interest rates at NADA Auto Show

ShareSansar, September 5:

Are you thinking about purchasing car and other auto mobiles, but you are compelled to give up plans for a long time to have a four-wheeler due to the lack of fund?

Now, you do not need to worry about the financing part as more than half dozen banks are ready to finance the four-wheeler purchase on as low as 7.39 percent interest rate.

After scanning the various models and brands of the automobiles, you do not need to drop your hobby at the stalls of NADA auto show since these banks have also set up their stalls to provide auto loan to the visitors interested to purchase the four-wheelers.

Nepal Bangladesh Bank Ltd, NIC Asia Bank Ltd, Bank of Kathmandu and Mega Bank Ltd have their stalls in the NADA auto show that kicked off at capital on Wednesday amid much fanfare.

Likewise, Mega Bank, Sanima Bank, Machhapuchchhre Bank Ltd, Laxmi Bank Ltd, Kist Bank and Standard Chartered Bank Ltd are also ready with auto loan services at the country’s annual auto mega show.

These banks are offering various scheme, facility and discount to lure the interested purchaser to borrow loans from them.

Also, the clients are likely to be benefitted from the stiff competition among the banks to offer the loans on low interest rate.

Standard Chartered Bank Ltd is offering the lowest interest rate of 7.39 percent interest rate targeting the purchaser of the auto at the NADA auto show.

This is followed by 7.5 percent interest rate from Laxmi Bank, 7.75 percent by Mega Bank and 7.99 percent by Sanima Bank, Kist Bank and NIC Asia Bank.
 
Likewise, the maximum repayment period of the loans are up to eight years while they are charging up to 1 percent service loan administrative processing charge However, Machhapuchhre Bank has said that it would not charge any processing charges to the clients who come during five days of auto show.
 
“Since this is the grand auto show, we are not charging any processing charges to the purchasers of the autos coming to our banks. The plus point is that we will lower the interest rate if there the interest rate at the market goes down during the loan repayment period,” Kabita Gurung of loan department at Machhapuchchhre Bank Ltd, told ShareSansar.

Similarly, the other banks will charge 0.5 percent to 1 percent of processing charge for the borrowers. The banks officials available at the stalls told Republica that the process of the lending will complete within 3-5 days in the average.

“The loan processing is not only easy, but the financing up to 80 percent of cost of the vehicle is an attractive offer from us,” said Subarna Kunwar, assistant relationship officer at consumer lending unit at Mega Bank.

Though the banks lower their interest rate on the auto loans on the eve of the festive seasons, they are under more pressure to slash such rate due to the lack of demands of loans from other productive sector and liquidity surplus.