KATHMANDU: Nepal Rastra Bank (NRB) has increased the maximum loan-to-value (LTV) ratio for large electric passenger vehicles used in public transport to 80%, making it easier for operators to purchase electric buses.
The provision has been introduced through NRB’s directives issued to banks and financial institutions for implementing the Monetary Policy for FY 2083/84.
Under the new rule, banks can finance up to 80% of the vehicle’s value, reducing the required down payment to 20%. Previously, buyers had to make a 40% down payment, as the maximum financing limit was 60%.
NRB has also allowed banks to provide loans of up to 80% for replacing commercial vehicles and transport equipment damaged by the Gen Z movement, provided they are used for business purposes.
However, the central bank has not changed the financing rules for private vehicles. The maximum loan-to-value ratio for private vehicle purchases remains 60%, requiring buyers to pay at least 40% as a down payment.
