KATHMANDU: While commercial banks in Nepal readily provide auto loans for cars, they have yet to show similar interest in financing motorcycles and scooters.
Despite an annual sale of around 300,000 two-wheelers, banks have no clear lending policy for this segment, mainly due to borrowers’ relatively lower income levels.
As a result, hire purchase and investment companies have taken the lead in providing motorcycle loans though often at higher interest rates. Among them, Hulash Finserv remains the largest financier for two-wheelers in Nepal, offering loans for brands such as Bajaj, Triumph, KTM, Hero and Royal Enfield.
Currently, interest rates in the two-wheeler finance market range between 1 % and 12 %, depending on the brand, down payment and repayment period.
Honda
Honda’s official distributor Syakar Trading provides loans through Syakar Financing at an interest rate as low as 1 % for buyers making a 60 % down payment and clearing the remaining amount within a year.
For a 40 % down payment and a two-year term, the interest rate increases to 11 %.
Bajaj
Hulas Investment Pvt. Ltd., under the Golchha Organization, offers finance for Bajaj and other brands. Customers can take loans for up to two years with a minimum 40 % down payment. The interest rate stands at 11.99 %.
Yamaha
MAW Investment Pvt. Ltd. provides loans for Yamaha motorcycles and scooters for a maximum period of two years. The interest rate varies depending on the down payment, customers making a 60 % down payment are charged 7 % interest, those paying 50 % are charged 8.99 % and those opting for a 40 % down payment are charged 9.99 % interest.
TVS
Jagadamba Investment Pvt. Ltd. offers loans for TVS two-wheelers for up to two years. Buyers can choose 40 or 50 % down payment options, with an interest rate of 7.99 % for 18-month or two-year terms.
Hero
For Hero motorcycles and scooters, Jagdamba Investment charges 8.99 % interest on loans with a 50 % down payment, and 11.99 % for a 40 % down payment, repayable within two years.
Royal Enfield
Alpha Automotive, the authorized distributor for Royal Enfield, provides loans through Hulash Finserv. Customers can get financing at 9.99 % interest with a 60 % down payment and a two-year repayment period.
