According to NADA Automobiles Association of Nepal, when Nepal Rastra Bank reduced the loan-to-value ratio limit for electric vehicles through the half-yearly review of monetary policy, businessmen were greatly upset.

NADA announced its opinion on Thursday and said that due to the policy of the National Bank, there will definitely be a decrease in the use of electric vehicles.

Rastra Bank has fixed the limit of loan-to-value ratio of personal vehicles and all types of electric vehicles at 60 percent while reviewing the monetary policy for the fiscal year 2081/82. Earlier, the loan-to-value ratio was 80 percent for electric vehicles and 100 percent for electric public vehicles.

"When the same arrangement is made in relation to electric vehicles, a situation has been created that will cause great distress to the electric vehicle businessmen," the statement said. According to NADA, the semi-annual review of Rashtra Bank's monetary policy has been neglected by giving special facilities to government electric vehicles by deciding to give high priority to green energy as a matter of policy.

"In order to secure the investment of businessmen in the case of electric vehicles, we sincerely request that the previous policy i.e. the limit of the loan-to-value ratio be maintained at 80 percent," the statement said.