Hire purchase companies in Nepal have issued around Rs 40 arba in loans, with the major portion of 80 percent being used for vehicles and the remaining 20 percent for mobile phones.
Hire purchase companies have lent about Rs 40 arba in total loans so far. Out of this total amount, 80 percent goes to purchasing vehicles while the remaining 20 percent is spent on buying mobile phones. Samir Thakur, the Chief Executive Officer of Hulas Finserv Hire Purchase, shared this information recently.
Targeting Customers Beyond Bank Reach
CEO Thakur was speaking at a program called ‘Mobilizing Mobility through Finance and Insurance’. The event was organized by the Nepal Automobile Importers and Manufacturers Association (NAIMA) on Thursday. He mentioned that the main target of hire purchase companies are customers who cannot easily reach or access commercial banks.
According to him, Nepal Rastra Bank has set specific sectors where hire purchase companies can give loans. Following this rule, these companies provides loans for buying vehicles, mobile phones, and other household goods. Thakur added, “Our target group is customers who cannot reach banks. Our main goal is to provide loans to small loan customers.”
Easy and Quick Loan Process
Hire purchase companies usually take loans from banks and financial institutions, and then they lend it again to their customers. Thakur shared that these companies have already disbursed about Rs 40 arba loans till now. He added that lately, 80 percent of these loans went for vehicles and 20 percent for mobile phones.
He also said that even customers who meets the criteria for bank loans can get finance easily through hire purchase companies. Since the process is much simpler than banks, they can disburse loans in just a few hours in some cases. According to him, the main objective of hire purchase companies is to provide easy financial access to people who are outside the banking system or need very small amount of money.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
