Target Segment:

1.  Individual Nepali Citizen or Business Entities.
2.  Age between 18 years to 70 years (maximum age limited to tenure of Loan) in case of Individual.
3.  Individuals with regular source of Income such as from: Employment, Self Employment, Remittance, Rental, Pension etc.
4.  Business Entities with regular income from the concerned business.

Purpose:

1.  Purchase of new vehicle for Business Purpose.
2.  For Refinancing of the old vehicle for Business Purpose.

Payment:

1.  Approved Loan shall be paid through A/c Payee Cheque to the supplier/owner of the vehicle.

Loan Tenure:

1.  Minimum 1 year Maximum 7 years for new vehicle.
2.  For old vehicle Maximum 5 years.

Financing Criteria:

1.  Maximum 80% of the chesis value of the vehicle as per pro forma invoice supported by Tax Invoice for new purchase. Maximum 70% of body building cost If Tax Invoice is presented.
2.  Maximum 70% of the valuation amount from the listed valuator of the Bank for Refinance of old vehicle.

Repayment Mode:

1.  Loan repayment shall be on EMI Basis.

Interest Rate:

1.  It shall be the published rate by Bank from time to time. click here

Charges:

1.  Service charges, Prepayment charges and all other applicable charges shall be as per Bank's STC policy.

Security:

1.  Vehicle shall be in the name of the Bank.
2.  Additional collateral of Land or Building shall be preferred.

Insurance:

1.  Property being mortgaged shall be insured sufficiently to cover the Loan amount till repayment of the total loan amount.

Documents Required:

1.  Application form with photo from Applicants/ Co -applicants and photo of Personal Guarantor if any.
2.  Performa invoice in case of first hand vehicle, Purchase agreement between the applicant and the seller in case of second-hand vehicle.
3.  Documents related to income such as Salary sheet, Rental agreements papers, Pension book, Proof of Remit receipt, FS of business, Income Certification from concerned Committees (Such as Bus Byawasahi  Samiti, Truck Byawasahi  Samiti etc.)
4.  Net worth Statement of Applicants/ Co -applicants and Personal Guarantor.
5.  Basic information and route permit of the route in which the vehicle is to be operated, revenue projected to be generated, cost of operation, personal expenses of applicant etc. and the amount available for debt servicing
6.  Copy of Citizenship Certificate of Applicants/Co-Applicants and Directors, Partners in case of Entity and Personal Guarantor if any.
7.  Six month’s statements of the saving account maintained by the applicant, if any.
8.  If the applicant’s business income is used to justify the cash flows, the applicant shall be required to submit copies of all business related documents such as Registration Certificate, Partnership Deed, Article of Association, Memorandum of Association, Tax Clearance Certificate, PAN certificate, latest Audited and /or Provisional Financial Statements.
9.  Any other documents to justify the loan that may be decided by the management from time to time or as may be required by regulatory requirement.