FNNTE Demands Reinstatement of Previous LTV Ratio for Vehicle Purchases

FNNTE Demands Reinstatement of Previous LTV Ratio for Vehicle Purchases In its mid-term review of the monetary policy, NRB set the limit of LTV ratio for private vehicles and all types of EVs at 60%, a significant reduction from the previous 80% for EVs

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03 March 2025

The Federation of Nepalese National Transport Entrepreneurs (FNNTE) has urged the government to reinstate the previous provision regarding vehicle import loans.

In its mid-term review of the monetary policy, Nepal Rastra Bank (NRB) set the limit of the loan-to-value (LTV) ratio for private vehicles and all types of electric vehicles (EVs) at 60%, a significant reduction from the previous 80% for EVs. The policy revision came amid rising EV imports and growing bank lending in the sector.

In a press release, FNNTE stated that the policy change is negatively impacting businesses. They argued that rather than incentivizing the purchase of electric vehicles to reduce air pollution and promote green energy, the new provision discourages the adoption of EVs as well as purchase of diesel-powered vehicles.

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