KATHMANDU: The central bank has disappointed those planning to purchase private vehicles by obtaining a large loan from banks.

Those mulling over buying a private vehicle will now have to make 50 per cent down payment. Due to the exposure of over Rs 100 billion of banks and financial institutions in automobile financing, Nepal Rastra Bank on Tuesday fixed the loan to value ratio in automobile financing through the mid-term review of the Monetary Policy. Banks and financial institutions can now finance only up to 50 per cent of the fair market value of the automobiles.

However, this provision will not be applied to public vehicles, heavy (construction) vehicles and vehicles used for official purposes, according to NRB.