Hire Purchase

Hire Purchase

A purchase loan is a loan issued to the buyer of a home by the seller. It is also called seller financing or owner financing.

Hire Purchase
6 %
Interest Rate
Hire Purchase
9.73 %
Base Rate
Hire Purchase
15.73 %
Total Interest Rate

Last Updated Date: May 17, 2022

Himalayan Bank Ltd

With the vision to become a Leading Bank of the country by providing premium products and services to the customers, thus ensuring attractive and substantial returns to the stakeholders of the Himalayan Bank was established in 1993. The most recent rating of Himlayan Bank Limited by Bankers’ Almanac as country’s number 1 Bank easily confirms their claim and to become the Bank of first choice is the main objective of the Bank. The mission of this Bank is to become the preferred provider of quality financial services in the country. There are two components in the mission of the Bank; Preferred Provider and Quality Financial Services; therefore at HBL they believe that the mission will be accomplished only by satisfying these two important components with the Customer at focus. The Bank always strives positioning itself in the hearts and minds of the customers. Legacy of Himalayan Bank lives on in an institution that's known throughout Nepal for its innovative approaches to merchandising and customer service. Products such as Premium Savings Account, HBL Proprietary Card and Millionaire Deposit Scheme besides services such as ATMs and Tele-banking were first introduced by HBL. Other financial institutions in the country have been following HBL’s lead by introducing similar products and services.

Hire Purchase


  • Passport size photo of applicant
  • Photocopy of citizenship certificate/passport of Applicant & guarantor
  • Photocopy of valid driving license (optional)
  • Photocopy of Tax/PAN/VAT certificate along with registration certificate
  • Photocopy of Article of Association and Memorandum of Association
  • Photocopy of Land ownership certificate

What Is a Purchase Loan?

If potential homebuyers can't qualify for a traditional mortgage loan from a bank, they can investigate a loan provided by the home's seller. This is called a purchase money loan. Purchase money loans are often used by buyers who have trouble qualifying for a traditional mortgage due to poor credit, or by those who do not have enough cash available for the down payment they need. If you are offered seller financing, you should still have an independent appraisal done to ensure that you are not overpaying or taking out a larger loan than the property is worth. The term "purchase money loan" is sometimes used for any mortgage used to buy a home or property. This is to distinguish loans used for purchasing a property from home equity loans or refinanced mortgages. It is seller financing, seller's loan, owner financing, owner's loan, purchase-money mortgage, purchase-money loan

How does Purchase Loan Works?

Purchase money loans usually take one of three forms:

  • If the seller does not have a mortgage, the buyer pays a down payment and the remaining cost of the home is financed by a purchase money loan from the seller. The seller establishes the monthly payment and interest rate.
  • If the seller still has a mortgage on the home, the buyer assumes responsibility for the seller's mortgage payments. The difference between the down payment and the remaining mortgage amount is the purchase money loan financed by the seller. The buyer pays the loan in installments equal to the monthly cost of the mortgage until they own the property.
  • The buyer purchases the home using a down payment and a traditional bank loan but does not qualify for a large enough loan to cover the price of the house. The portion of the purchase price not covered by the down payment or the bank loan is the purchase money loan financed by the seller.

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