Auto loans are issued by financial institutions or may be used by the banks to buy cars that are either new or used for both personal and commercial purposes. Usually, the duration of an auto loan varies from 24 months to 60 months, usually within 72 to 84 months providing it for new cars, used cars, a two-wheeler loan and a loan for commercial vehicles.
Last Updated Date: May 17, 2022
Nepal Bank Limited is the first financial institution of Nepal which was established on November 15, 1937 A.D (Kartik, 30, 1994). It was shaped under the principle of Joint undertaking (Joint project between govt. & regular public). NBL's licensed capital was once Rs. 10 million & issued capital Rs. 2.5 million of which paid-up capital used to be Rs. 842 thousand with 10 shareholders.. It is a national level bank. With the recent Follow-on Public Offer (FPO) offered in 2018, the bank has a share ratio of Government to Public as 51:49 percent. This bank has not provided dividends to shareholders for the last 21 years. It is currently trading at Nepal Stock Exchange with the symbol ‘NBL’. Nepal bank has appointed Civil Capital Market Limited as its share registrar. It focuses on building internet worth and assembly of minimal capital necessities within five years.
Required documents for Auto Loan
An Auto Loan is taken by borrowers to purchase a new or used private or commercial vehicle. Auto loans are secured loans where the vehicle itself is used as collateral. It is offered by lenders for new cars, used cars, two-wheeler (generally called a Two-wheeler Loan), and commercial vehicles (generally called a Commercial Vehicle Loan). Auto loans can be used to purchase either new or used vehicles. The term of an auto loan typically ranges from 24 months to 60 months, though longer loans with 72 or 84 months are becoming increasingly common. Most lenders limit the term lengths to 48 or 60 months for older car purchases, as used cars are riskier to finance. This is because car value generally declines over time, unlike home value. Accordingly, if the car being financed is also used as collateral, lenders need to make sure that it will be worth enough to cover their losses if the borrower defaults. Because of the rapid depreciation of car value, shorter loan terms and larger down payments are most advisable for auto loans.
An auto loan with a low monthly payment might look like a good option, but that can actually cost you significantly more over time. And the loans you’ll be offered will also vary depending on different factors, like your income source, valuation of property with unstable sources can make it harder to get the best loan offers. Here are things to look for and steps to take if you want to save money on your car loan:
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