Hire Purchase Loan

KUSCCOOP Auto/Hire Purchase Loan

KUSCCOOP Vehicle Loan (Auto and Hire Purchase) scheme has been designed with a view to fulfil the dreams of professionals, self-employed and business executives and public transporter or investors for the purpose of transportation business  who wish to own a vehicle following a simple process. Under this product, loan facility is provided to purchase new/used vehicles as well as for commercial purpose.

Hire Purchase Loan

For financing commercial vehicle i.e. Bus, Trucks, Tanker, Container Trucks, Taxi, Jeep, Microbus, Heavy equipment like excavator, Roller, Dozer, etc. to be used for the purpose of public transport/commercial use or private, official use by business firm/companies.  The repayment of such loans is dependent on its own earning/business income on daily or monthly EMI basis.

Loan Type

  • Term Loan

Loan Amount

  • Minimum loan size to be NPR 500,000 (5 Lakh)
  • Maximum up to 60% of the cost of the vehicle. Cost of vehicle includes the cost of chassis and the expenses incurred on body making. Any other related expenses such as entry fee, route permit, etc. shall not be calculated in cost of the vehicle.
  • The estimated cost of body building should be realistic and not to be inflated.
  • Finance for used vehicle is restricted to 50% of the valued amount.

Tenure

  • For brand new vehicle, maximum 3 Years.
  • For second hand vehicle maximum 5 years however, the age of the vehicle should not exceed 10 years by the time of final settlement of the loan.

Rate & Fee

  • Interest Rate 16% as decided by the KUSCCOOP from time to time
  • Processing Fee as per KUSCCOOP rules.

Purpose

For purchase of vehicles (construction of body thereon) including bus/ truck/ tipper/ tractors/ excavator/ heavy equipment’s etc. for commercial purpose

Eligibility

An individual, Firm, Private Ltd. Companies, Public Ltd. (subject to Transport Management Directive)

 

A. For Individual

  • Repayment is to be ensured within 65 years of age.
  • Net income to be minimum 100% of the EMI obligation.

 

B. For Business firms/concerns

  • For existing business firms/concerns (this business should be running since at least last 1 year and generating cash profits)
  • For new business less than 1 year’s operations, repayment can be considered on future cash flows based on realistic projections.
  • Debt Service Coverage Ratio to be minimum 1.50:1

Limit     

  • Need Based

Margin

  • 50.00% for personal purpose
  • 20% - Electric Vehicle
  • 25% - For public vehicle (with minimum 40 seats), construction, tourism, education, health, and transportation

Interest rate   

  • Competitive rate (subject to change)
  • 15.75% -16%

Terms & Condition for Repayment of Loan

  • up to 5 years for new vechiles on the basis of EMI.
  • up to 3 years for second hand vechiles on the basis of EMI.

Security         

  • Registration of vehicle in the name of KUSCCOOP.
  • Acceptable Collateral security.
  • Personal guarantee of person(s) acceptable to the KUSCCOOP shall be obtained.

Insurance      

  • Comprehensive policy with third party insurance as per KUSCCOOP’s clause.