By Karuna Thapa
Kathmandu, March 10
Banks have ceased offering vehicle loans, according to Dhruba Thapa, president of the NADA Automobile Retailers Group, an association of auto dealers. The sale of the automobiles was tough, according to Chairman Thapa, because the banks had halted the flow of financing.
According to Thapa, many clients used to buy cars on the basis of installment, with only 10% buying cars outright. The number of consumers has decreased after banks ceased issuing vehicle loans.
Auto dealers are currently experiencing difficulties as a result of the Nepal Rastra Bank’s recent policies and a shortage of liquidity in the banks. There is a clause in the most recent NRB agreement to preserve a 100 percent cash margin on imports.
