NIC Asia Bank, Syakar Trading Partner for Honda Auto Financing
NIC Asia Bank and Honda distributor Syakar Trading have introduced vehicle financing packages featuring a fixed 5.99 percent interest rate for seven years and holiday purchase incentives.
KATHMANDU — NIC Asia Bank and Syakar Trading Company, the authorised distributor of Honda vehicles in Nepal, have entered into a financing agreement to offer subsidised auto loans for buyers of Honda four-wheelers ahead of the festive season.
The memorandum of understanding was signed on Monday by Amit KC, chief business officer for retail business at NIC Asia Bank, and Srijana Jyoti, chief executive officer of Syakar Trading, according to coverage by Nagarik News, Nepal Press, and Clickmandu.
Under the partnership, customers purchasing Honda cars through Syakar Trading can access vehicle loans under two different interest-rate structures. Borrowers opting for an adjustable rate will be charged the bank's average base rate plus an additional one percentage point. Alternatively, customers can choose a fixed interest rate of 5.99 percent for a tenure of up to seven years. The lender is also providing a 0.25 percent concession on administrative service fees alongside fast-track loan processing, Nepal Press and Clickmandu reported.
The commercial financing arrangement coincides with Syakar Trading's annual holiday campaign targeting major celebrations including Dashain, Tihar, and Chhath. Karobar Daily reported that the distributor rolled out its "Festive Offer Honda Ko Safar" scheme over the weekend, dangling cash discounts of up to Rs 1 million on select new Honda models.
According to Karobar Daily, the distributor's promotional package includes free road tax for one fiscal year, complimentary comprehensive motor insurance for one year, five years of free routine vehicle servicing, and one year of complimentary roadside assistance. Syakar Trading has also introduced an on-the-spot vehicle exchange scheme featuring exchange bonuses for vehicle owners trading in older cars, backed by credit options from both Syakar Higher Purchase and commercial lenders including NIC Asia Bank.
Nepali commercial banks routinely align with automobile importers and dealerships during the autumn festive window, which typically accounts for a significant portion of annual private vehicle sales in the country.