Auto Loan - Private

Auto Loan - Private

Mega Auto Loan with its attractive product features, trouble-free documentary procedures and quick loan processing, easy & flexi repayment options and competitive interest rate, ensures that your desire of owning a vehicle is no longer a distant dream. It caters the need of our valued customer for financing brand new & used private as well as commercial/utility vehicles.

Auto Loan - Private
7 %
Interest Rate
Auto Loan - Private
8.77 %
Base Rate
Auto Loan - Private
15.77 %
Total Interest Rate

Last Updated Date: March 21, 2022

Mega Bank Nepal Ltd

Nepal Rastra Bank issued Mega Bank its Operating License on 4th Shrawan, 2067 and it commenced banking operations from 7th Shrawan 2067. It lies under class “A” commercial bank which has achieved Nine years of operations and is on its way to realizing the aspirations of 2,396 promoters who incorporated chiefly from middle-class households spread over more than sixty three Districts of Nepal. Mega Bank has merged with Paschimanchal Development Bank and Tourism Development Bank. Banking Services of Mega Bank Limited are dedicated to the whole monetary strata of the Nepalese society from “Halo” to “Hydro”. Mega Bank Nepal Limited is currently trading in Nepal Stock Exchange with symbol MEGA. MEGA has provided a dividend return of 7.85 percent in the fiscal year 2074/75. Mega Bank Limited has appointed Nabil Investment Banking Limited as it’s share registrar. Mega Bank is dedicated to supplying financial options to not just the pinnacle middle or backside of the Pyramid.

Auto Loan - Private


Required documents for Auto Loan

  1. Duly filled up and signed prescribed application form of banks.
  2. 2 photographs of applicant, and guarantors with name and signature on the back.
  3. Copy of citizenship certificate of applicant, collateral owner/s and guarantors
  4. Name of father, grandfather and spouse of applicant, collateral owner/s and guarantors along with the details of their undivided family members.
  5. Bank Statement of 6 months period.
  6. Copy of land ownership certificate (lalpurja) of the land showing residence of the individual borrower/family
  7. Registration Documents & Tax Documents in case of business.
  8. Documentary evidence of income.
  9. Quotation of the vehicle with details of price, model, features etc.
  10. Other related documents requested by banks.

What is Auto Loan?

An Auto Loan is taken by borrowers to purchase a new or used private or commercial vehicle. Auto loans are secured loans where the vehicle itself is used as collateral. It is offered by lenders for new cars, used cars, two-wheeler (generally called a Two-wheeler Loan), and commercial vehicles (generally called a Commercial Vehicle Loan). Auto loans can be used to purchase either new or used vehicles. The term of an auto loan typically ranges from 24 months to 60 months, though longer loans with 72 or 84 months are becoming increasingly common. Most lenders limit the term lengths to 48 or 60 months for older car purchases, as used cars are riskier to finance. This is because car value generally declines over time, unlike home value. Accordingly, if the car being financed is also used as collateral, lenders need to make sure that it will be worth enough to cover their losses if the borrower defaults. Because of the rapid depreciation of car value, shorter loan terms and larger down payments are most advisable for auto loans.

Way To Take Auto Loan

An auto loan with a low monthly payment might look like a good option, but that can actually cost you significantly more over time. And the loans you’ll be offered will also vary depending on different factors, like your income source, valuation of property with unstable sources can make it harder to get the best loan offers. Here are things to look for and steps to take if you want to save money on your car loan:

  1. Design a payment plan for yourself: Before you even submit a car loan application, set out a car payment plan for yourself. Figure out how much you can afford to pay upfront, and how much you’ll need in a car loan.
  2. Make bigger or additional payments: Paying off a loan early can save you money because you’ll avoid paying some of the interest. See if you can afford to pay a little more each month as part of your regular payments, or, if you suddenly come into some cash, consider putting it towards your auto loan.
  3. Refinance your loan: If you find a car loan with a lower interest rate than your current one, maybe because your credit score has improved since you first got your car loan, consider refinancing your car and switching loans. The lower the interest rate, the less you’ll pay over time.

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