Younger buyers are reshaping vehicle finance
Global IME Bank’s Chief Marketing Officer Raj Aryal said the profile of vehicle loan customers has changed sharply. The average buyer age has fallen from around 43 years to a point where 60% of borrowers are now below 40.
Aryal said many applicants now have a stable income, which makes hire purchase financing easier to access. He said the number of women borrowers is higher than before.
Kathmandu still has the biggest demand for vehicle loans. Lending is also gradually expanding beyond the capital as banks widen services in other cities.
Aryal said even students can qualify for financing if they meet the required conditions and have a steady income source. He added that banks are able to issue loans as early as the next day when documents are complete.
He also said vehicle loans are based on the loan-to-value ratio. Interest is usually set by adding a premium to the base rate.
Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.
