Central Bank Made a New Arrangement to Give Approval Hire Purchase Loan to Companies

Kathmandu : Nepal Rastra Bank has made a new policy arrangement for approving hire purchase loan companies. Central Bank on Monday issued Policy and Procedure Regulation 2080 for approving higher purchase loan companies. The Central Bank has set various standards to get this type of approval.

There is a guideline of Central Bank that the company providing hire purchase loans must meet the necessary physical infrastructure as well as other procedural standards. criteria

– If you think that the transaction will be healthy, competitive and efficient while granting hire purchase loans.- If it is considered that Hire Purchase is able to give loans subject to the prevailing laws and the rules, regulations made thereunder or the orders or instructions issued thereunder and the articles of association and regulations.

– According to the details and documents attached with the application for approval, if there is sufficient basis to believe that the company is capable of granting hire purchase loans.

– The company should start such business within 6 months from the date of getting approval to give hire purchase loan. Otherwise, the approval granted to such company to do business will automatically be cancelled.

Non-Approval of Hire Purchase Loan- If it does not seem appropriate to give approval to such a company based on the existing conditions and potential of the bank or financial sector.- If there is a new application for the establishment of a company in an area where the presence of hire purchase companies is high, it can be rejected.- If the details submitted with the application for the hire purchase loan are not sufficient or credible.

– If there is a situation where approval cannot be given to a company for hire purchase loan, Central Bank should inform the concerned company within one hundred and twenty days from the date of the opening application or if additional details are requested.