Vehicle finance dominates
Around 80% of the loans issued by hire purchase companies go into vehicle purchases, according to Hulas Finserv Hire Purchase Company CEO Samir Thakur at the NAIMA event in Kathmandu.
Thakur said these companies also finance household goods and other products. Their main customers are people who struggle to access bank loans. He added that the firms have already provided around Rs 40 billion in loans.
He also said recent lending has split into 80% for vehicles and 20% for mobile phones. Hire purchase companies borrow from banks and then pass those funds on to customers. Loan approval can take only a few hours.
AN
Ajit Narayan Singh
Editor, Nepal AutoMart
Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.
