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    {"id":13300,"date":"2018-11-09T14:29:47","date_gmt":"2018-11-09T08:59:47","guid":{"rendered":"https:\/\/www.nepalisansar.com\/?p=13300"},"modified":"2018-11-12T11:23:19","modified_gmt":"2018-11-12T05:53:19","slug":"central-bank-of-nepal-increases-down-payment-on-automobiles","status":"publish","type":"post","link":"https:\/\/www.nepalisansar.com\/business\/central-bank-of-nepal-increases-down-payment-on-automobiles\/","title":{"rendered":"Central Bank of Nepal Increases Down Payment on Automobiles"},"content":{"rendered":"

    Creating despair among customers purchasing automobiles<\/a> this festive season, the Nepal Central Bank increased their down-payment.<\/p>\n

    According to the Nepal Rastra Bank\u2019s (NRB) announcement on November 09, 2018, the authority has decreased the loan-to-value-ratio to 50 percent from the current 65 percent. <\/strong>Following this, automobile purchasers will pay Rs 1.5 million down-payment, if a car\u2019s value is Rs 3 million.<\/p>\n

    The Central Bank took this decision in a bid to control the increasing import of vehicles, specially luxury vehicles, over the last few years.<\/p>\n

    \"Narayan\u201cData shows that vehicle import is growing at an alarming rate which is not good for the economy even though the automobile sector is a major revenue contributor to the government,\u201d said Narayan Prasad Poudel<\/span>, NRB Spokesperson.<\/p><\/blockquote>\n

    Similarly, the Central Bank\u2019s decision of controlling automobile financing also seeks to address its credit crunch<\/a> which causes a major chunk of its revenue to go abroad.<\/p>\n

    According to government statistics, in the last eight years the number of vehicles in Nepal has doubled to 3.2 million!<\/p><\/blockquote>\n

    Besides customers, NRB\u2019s decision is also likely to hit private vehicles\u2019 sale as dealers say that more than 60 percent vehicles in the market are sold through financing.<\/p>\n

    \u201cAs high taxes have made vehicles costlier in Nepal, people seek financing from banks and financial institutions while purchasing vehicles. However, squeezing auto financing will certainly discourage potential buyers,\u201d said Saurabh Jyoti<\/span>, Chairman, Syakar Trading Company and former Nepal Automobile Dealers\u2019 Association President.<\/p><\/blockquote>\n

    Jyoti  said that the automobile industry was not unproductive for lending as the it contributed to 20 percent of the total government revenue collected every year. He also adds that no economy can grow by attempting to squeeze the automobile industry.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Creating despair among customers purchasing automobiles this festive season, the Nepal Central Bank increased their down-payment.…<\/span><\/p>\n

    Read more<\/a><\/div>\n

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