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The Nepal Stock Exchange (NEPSE) gained 6.94 points to close at 2,830.20 points on Tuesday.

Similarly, the sensitive index surged by 1.20 points to close at 505. 03 points.

A total of 30,599,890-unit shares of 328 companies were traded for Rs 13. 57 billion.

Meanwhile, NLG Insurance Company Ltd. (NLG), Sindhu Bikash Bank Ltd (SINDU), Matribhumi Lagubitta Bittiya Sanstha Limited (MATRI), Green Development Bank Ltd. (GRDBL) and Wean Nepal Laghubitta Bittiya Sanstha Limited (WNLB) were the top gainers today, with their price surging by 10. 00 percent.

Likewise, Himalayan Power Partner Ltd. (HPPL) was the top loser as its price fell by 8.86 percent.

At the end of the day, total market capitalization stood at Rs 4. 49 trillion.

In the fiscal year 2022/23, banks and financial institutions invested Rs 159.21bn in vehicle loans (hire purchase), marking a 1.31 percent annual increase. However, in the fiscal year 2023/24, hire purchase loans saw a sharp decline of 22.05 percent, dropping to approximately Rs 124.1bn—a decrease of around Rs 35.1bn from the previous year. Bankers attribute this decline to the sluggish economy in the last fiscal year.

Despite this, banks report an increase in hire purchase loans this year, driven by the growing preference for electric vehicles (EVs). According to Abhash Paneru, Retail Lending Relationship Manager at Sanima Bank, confusion over whether to purchase fuel-powered (ICE) or electric vehicles contributed to the decline in loans last year. Paneru noted that banks have since introduced competitive interest rates for EV loans, offering a 7-year fixed rate of 8.49 percent, with a slight premium added to the base rate for hire purchase loans. He emphasized that loan processing is straightforward, taking about a week once required documents, such as income and tax statements, are submitted.

Interest rates for vehicle loans are fixed for 5, 7, and 10 years across different banks, ranging from a minimum of 7.54 percent to a maximum of 12.50 percent in commercial banks. Development banks offer interest rates from 8.1 percent to 16.47 percent, while finance companies provide loans at rates between 9.98 percent and 17.74 percent. With interest rates falling to single digits and the NADA Auto Show currently underway, there is a favorable opportunity for customers to purchase vehicles on installment plans.

As festivals approach, consumer spending typically increases, and this trend is expected to boost overall vehicle loans. According to Bibek KC, Business Development Officer of Nabil Bank’s Retail Lending Unit, many people are attracted to electric vehicles due to the higher loan facilities provided by banks under Nepal Rastra Bank's guidelines. He noted that the share of EVs in overall auto loans has increased, prompting banks to focus on this segment over the past two years.

Santoshi Shahi, Relationship Manager of Global IME Bank’s SME and Retail Promotion Unit, added that EVs are more attractive due to the financing arrangements offered by the Central Bank and the low-interest rates on hire purchase loans for EVs. Speaking to Annapurna, she mentioned that her bank has set competitive interest rates on Green Drive EV loans at the NADA Auto Show.

According to Nepal Rastra Bank, loans can cover up to 80 percent of an EV’s value and up to 50 percent of a fuel vehicle’s value through banks and financial institutions.

A hire purchase loan is a loan granted to individuals, firms, companies, or organizations for the purchase of vehicles, machinery, tools, or equipment for agricultural, industrial, commercial, or private purposes, with ownership transferred after the full installment is paid. Although hire purchase loans can apply to any movable goods, they are most commonly used for vehicles. Banks and financial institutions offer these loans, and Omni Pvt Ltd was the first company to receive approval from the Central Bank on April 27, 2014, to operate as a hire purchase lender.

The Nepal Stock Exchange (NEPSE) gained 127.32 points to close at 2,823.25 points on Monday.

Similarly, the sensitive index surged by 22.94 points to close at 503. 83 points.

A total of 31,430,048-unit shares of 335 companies were traded for Rs 13. 10 billion.

Meanwhile, National Hydro Power Company Limited (NHPC), Best Finance Company Ltd. (BFC), Samriddhi Finance Company Limited (SFCL), Progressive Finance Limited (PROFL) and NLG Insurance Company Ltd. (NLG) were the top gainers today, with their price surging by 10. 00 percent.

Likewise, Laxmi Unnati Kosh (LUK) was the top loser as its price fell by 4.71 percent.

At the end of the day, total market capitalization stood at Rs 4. 48 trillion.

The price of gold has dropped by Rs 300 per tola in the domestic market on Monday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 152, 000 per tola today. It was traded at Rs 152, 300 per tola on Sunday.

Similarly, the price of silver has dropped by Rs 20 and is being traded at Rs 1,775 per tola today.