Hire Purchase loan scheme has been designed with a view to fulfil the dreams of professionals, self-employed and business executives and public transporter or investors for the purpose of transportation business who wish to own a vehicle following a simple process. Under this product, loan facility is provided to purchase new/used vehicles as well as for commercial purpose.

Loan Type

• Term Loan

Loan Limit

• Minimum loan size to be NPR 500,000 (5 Lakh)
• Maximum up to 60% of the cost of the vehicle. Cost of vehicle includes the cost of chassis and the expenses incurred on body making. Any other related expenses such as entry fee, route permit, etc. shall not be calculated in cost of the vehicle.
• The estimated cost of body building should be realistic and not to be inflated.
• Finance for used vehicle is restricted to 50% of the valued amount.

Tenure

• For brand new vehicle, maximum 7 Years.
• For second hand vehicle maximum 5 years however, the age of the vehicle should not exceed 10 years by the time of final settlement of the loan.

Rate & Fee

• Interest Rate 14 % – 14.75% (subject to change)

Fees and Charges

• As per the rules of Dragon Saccos.

Eligibility

An individual, Firm, Private Ltd. Companies, Public Ltd. (subject to Transport Management Directive)

1. For Individual

• • Repayment is to be ensured within 65 years of age.
  • Net income to be minimum 100% of the EMI obligation.

1. For Business firms/concerns

• • For existing business firms/concerns (this business should be running since at least last 3 year and generating cash profits)
  • For new business less than 1 year’s operations, repayment can be considered on future cash flows based on realistic projections.
  • Debt Service Coverage Ratio to be minimum 1.50:1

Limit     

• Need Based

Margin

• 00% for personal purpose
• 30% – Electric Vehicle
• 40% – For public vehicle (with minimum 40 seats), construction, tourism, education, health, and transportation

Security         

• Registration of vehicle in the name of Dragon Saccos.
• Acceptable Collateral security.
• Personal guarantee of person(s) acceptable to the Dragon Saccos shall be obtained.

Insurance 

• Comprehensive policy with third party insurance as per Dragon Saccos clause.