Low Demand for Vehicle Loans Despite Central Bank Approval

Banking Khabar/ The Nepal Rastra Bank had allowed up to 80% loan financing to replace vehicles damaged during the Gen Z movement, instead of the usual 60% limit. But loan demand has remained very low only about 20% of damaged vehicle owners applied.

Insurance data shows 1,778 vehicles filed claims, though no official damage report exists. Despite permission to finance new vehicles after the Bhadra 23 and 24 incidents, replacements have barely happened, and the expected loan uptake has not materialized.