Kathmandu: Kamana Sewa Bikas Bank Limited has introduced an auto loan facility designed to finance the purchase of various personal and commercial vehicles. The financing scheme combines competitive interest rates, simplified documentation, flexible repayment periods, and customer-focused services to make vehicle ownership more accessible.
The auto loan is available for a wide range of vehicles, including new and used private vehicles, taxis, commercial vehicles, and vehicles used for business purposes.
Financing Available for Multiple Vehicle Categories
Under the scheme, individuals can obtain financing to purchase brand-new private cars, jeeps, and SUVs for personal and family use. The bank also provides financing for used private vehicles.
Customers planning to purchase taxis to start or expand passenger transportation services can also obtain financing through the scheme.
The facility further covers heavy commercial vehicles such as trucks, buses, tippers, and other vehicles used for cargo transportation and logistics.
Similarly, financing is available for light multi-utility vehicles, delivery vans, and specialized vehicle fleets used for business operations.
Up to 80 Percent Financing
The bank provides financing based on the loan-to-value ratio of the vehicle. For private vehicles purchased by individuals or entities, financing is available for up to 60 percent of the total vehicle value.
For commercial vehicles, financing can cover up to 80 percent of the vehicle value for standard internal combustion engine vehicles. For electric vehicles, the maximum financing ratio is 60 percent.
For semi-commercial vehicles and green-plated vehicles, financing is available for up to 60 percent of the total vehicle value.
Up to Seven-Year Repayment Period
The maximum repayment tenure for standard internal combustion engine vehicles is seven years. For electric vehicles, the maximum repayment period is five years.
The minimum loan amount is NPR 400,000 per vehicle, while the maximum loan amount is NPR 15 million per vehicle.
Quick Processing and Simple Documentation
The bank says its auto loan service is designed with a simplified documentation and efficient approval process. Customers can also receive personalized assistance from loan representatives based on their financial requirements and circumstances.
Required Documents
Individual applicants, guarantors, or authorized signatories are required to submit a copy of their official citizenship certificate along with passport-size photographs.
For new vehicle purchases, applicants need to provide an official quotation for the vehicle. For used private vehicles, a valuation report prepared by a bank-approved valuer is required.
Salaried applicants need to provide a salary certificate, while independent professionals must submit a certified statement of income. Individuals earning fixed income from rental or contractual sources need to provide relevant contracts and formal agreements.
Additional Documents for Companies and Firms
Companies and firms are required to submit registration documents issued by the concerned government and tax offices, including PAN and VAT-related certificates where applicable.
Private limited companies must provide their Memorandum of Association and Articles of Association, while registered partnership firms must submit their Partnership Deed.
Institutions and private limited companies must also provide a board resolution authorizing the loan request and identifying the authorized signatories.
Businesses must submit audited financial statements covering at least two full financial years to verify their income and financial position.
Kamana Sewa Bikas Bank says the auto loan is intended to provide a convenient financing option for customers seeking vehicles for both personal and commercial purposes through flexible repayment terms, structured financing, and dedicated customer service. Interested customers can contact their nearest bank branch to apply for the facility.
