Banks and financial institutions will only be allowed to give loans up to 60 percent of the price for the purchase of all personal and electric (private and public) vehicles running on petrol and diesel. Earlier, banks and financial institutions were giving loans up to 80 percent for personal electric vehicles and 100 percent for public electric vehicles.

 Through the semi-annual review of the monetary policy issued by the National Bank on Tuesday, it has been arranged that up to 60% loan can be taken on all electric vehicles. 

Similarly, there is currently a provision of up to 50% loan for the purchase of petrol and diesel-powered (IC engine) personal vehicles, but this has been increased to 60%. In the case of public vehicles running on petrol and diesel, banks and financial institutions are allowed to give loans up to 100 percent. Through the review, it seems that the National Bank wants to discourage electric vehicles and encourage other vehicles.

Businessmen argue separately about tighter credit flow for purchasing electric vehicles and more flexible arrangements for other vehicles. Even though the National Bank is trying to encourage the purchase of petrol and diesel vehicles by increasing the loan-to-value ratio by 10 percentage points, the customs duty is already high and its share in the overall vehicle market is low, so it will not have a big impact, said Suraj Vaidya, former president of the Federation of Nepalese Industries and Commerce.

'In Nepal, there is a loss to the state without increasing the customs duty on the import of electric vehicles. Everyone has understood this, but they have not spoken," he said. "Foreign currency has gone out in the name of electric vehicles, revenue has decreased. Tomorrow, everyone should understand where the money will come from for road construction and maintenance.' 

Senior Vice President of NADA Automobiles Association of Nepal Akash Golchha said that the National Bank has discouraged electric vehicles by reducing the loan-to-value ratio of electric vehicles. Until now, the government has been encouraging electric vehicles. It was necessary to encourage electric vehicles in Nepal to increase the consumption of electricity, to reduce the import of petroleum products, to improve the environment," he said. "I don't understand why the National Bank suddenly introduced a policy to discourage electric vehicles. 

This will have a negative impact on businessmen who import electric vehicles, customers who want to buy vehicles with less cash and the overall economy.'

About 70 percent of the total vehicle market is electric and the remaining 30 percent is other vehicles. At such a time, discouraging electric vehicles will have a negative impact on the overall economy," he adds, "When there was no demand for loans in other sectors, banks were giving loans to electric vehicles. Now the demand for loans from that area will also decrease.' 

Similarly, the former president of Nepal Bankers Association Bhuvan Dahal said that the National Bank may have reduced the loan-to-value ratio as problems have arisen in the recovery of loans for electric vehicles. Chief Executive Officer of Krishi Bikas Bank Govind Gurung said that the National Bank has reduced the loan-to-value ratio for electric vehicles for the safety of banks. "Recently, when problems have arisen in the recovery of electric vehicle loans, the new arrangement will have a good effect on the security of banks' loans," he said.