KATHMANDU: Nepal Rastra Bank (NRB) has directed banks to provide up to 80% financing for the purchase of vehicles to businesses and enterprises affected by the Gen Z protest of September 8 and 9.
Issuing a circular on Friday, the central bank instructed banks and financial institutions to extend this facility specifically to industries and business establishments that suffered direct losses during the protest.
Under the new arrangement, affected businesses will be able to purchase new vehicles with up to 80% bank financing.
For other buyers, however, the LTV ratio remains the same 60%, which means buyers pay 40% of the cost upfront.
“For industries and business establishments directly affected by the Gen Z protest whose transport and commercial vehicles were destroyed, the loan-to-value (LTV) ratio can be maintained at up to 80% while providing loans for replacement vehicles,” the NRB circular said.
For other buyers, however, the LTV ratio remains the same 60%, which means buyers pay 40% of the cost upfront.
Currently, banks provide up to 60% financing for all types of electric vehicles and for personal-use private vehicles.
