In today's world, where affordability plays a crucial role in making purchases, the concept of Equated Monthly Instalments (EMI) has gained significant popularity. EMI allows individuals to buy products and services, including scooters, by spreading the payment over a specified period. In Nepal, several leading scooter brands and showrooms offer EMI options to make scooter ownership more accessible and convenient for customers. In this blog post, we will explore the world of scooter EMI in Nepal, discussing the process, benefits, and the prominent brands and showrooms providing EMI facilities.
Understanding Scooter EMI in Nepal
What is EMI?
EMI refers to Equated Monthly Instalments, a fixed amount of money that borrowers pay back to lenders on a monthly basis until the loan amount, including principal and interest, is fully repaid. EMI provides individuals with the opportunity to purchase products or services that they can afford presently but may not be able to pay for outright. By dividing the total cost into smaller monthly payments, EMI allows for more manageable financial planning. There are various advantages and disadvantages of EMI.
Factors Affecting EMI
In Nepal, the factors affecting EMI are generally similar to those in other countries. Here are some key factors that influence the EMI calculation in Nepal:
Loan Amount: The principal amount borrowed significantly impacts the EMI. As the loan amount increases, the EMI amount also increases.
Interest Rate: The interest rate charged by the lender is a crucial factor affecting the EMI. Higher interest rates result in higher EMIs, and vice versa.
Loan Tenure: The duration or tenure of the loan affects the EMI calculation. Generally, longer loan tenures result in lower EMIs, but the overall interest paid over the loan term is higher. Shorter tenures lead to higher EMIs but lower overall interest payments.
Type of Interest: The type of interest rate can be fixed or floating. In the case of a fixed interest rate, the EMI remains constant throughout the loan tenure. However, with a floating interest rate, the EMI may vary depending on market conditions.
Processing Fees: Lenders often charge a processing fee for loan applications. This fee may be added to the loan amount or deducted upfront, which can impact the EMI calculation.
Down Payment: Down payment is an initial amount that customers pay while purchasing a scooter through EMI. It acts as a commitment from the buyer and reduces the loan amount, thereby affecting the subsequent EMI payments.
Prepayment Options: Some loans allow borrowers to make prepayments, which can reduce the principal amount and, in turn, decrease the EMI or shorten the loan tenure.
There is an easy formula on how the EMI is calculated and there are many EMI Calculators that you can use to calculate it without using the formula.
Leading Scooter Brands Offering EMI in Nepal
Hero
Hero scooters have long been known for their affordability and reliability, and has a range of six different models. In Nepal, Hero scooters continue to be a popular choice due to their competitive pricing and performance.
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To make owning a Hero scooter even more accessible, Hero MotoCorp has introduced the "Sajilai Hero" campaign, which offers easy financing options with 0% down payment. This campaign allows customers to purchase any Hero motorcycle or scooter without any upfront payment. However, it's important to note that specific terms and conditions apply to this campaign. For more information on the financing options available, you can visit Hero MotoCorp's official website.
Honda
Honda is a well-known brand in the two-wheeler industry, offering a wide range of scooters tailored to different preferences and requirements. Honda scooters are known for their performance, fuel efficiency, and stylish designs.
For customers looking to finance their Honda scooter purchase, Honda has partnered with Syakar Investment Company Pvt. Ltd. to provide flexible financing options. Honda Motorcycles and Honda Cars have separate finance processes, ensuring a streamlined experience for customers.
To find out more about the showrooms that offer financing facilities and to explore the financing options available, you can visit Honda Nepal's official website. Additionally, Honda provides an online finance calculator on their website, allowing customers to estimate their EMI based on their preferred scooter model, down payment scheme, and loan tenure.
Italica Moto
Italica Moto, distributed by Classic Wheels, offers a performance-inspired scooter option in Nepal. Their flagship model, the Italica Formula 150, combines aggressive performance with race-inspired styling, attracting riders who seek a unique riding experience.
Italica Moto has introduced the "Upahar Mela No Jhamela" campaign, providing customers with attractive financing options. With this campaign, customers can avail themselves of a 9% interest EMI plan by making a 50% down payment and selecting a loan tenure of 2 years. Additionally, customers can benefit from cash discounts and a tax clearance offer. For more details on this campaign and its terms, you can visit their official Facebook page.
Komaki
As the demand for electric scooters grows, Unity Trading Concern, the authorised distributor of Komaki e-Scooters in Nepal, has introduced a brand new electric scooter brand called Komaki. Komaki offers feature-packed electric scooters that cater to the evolving needs of eco-conscious riders.
Komaki Nepal provides customers with the opportunity to own an electric two-wheeler through their EMI scheme. With a down payment of 40% and a loan tenure of 2 years, customers can avail themselves of an EMI option at an interest rate of only 16%. It's worth noting that the EMI amount may vary depending on the price of the chosen Komaki model. To learn more about the EMI plans offered by Komaki EV Nepal, you can visit Komaki official website.
NIU
NIU scooters have gained popularity as one of the leading electric scooter brands in Nepal. Eco Infinity Pvt. Ltd., the authorised distributor of NIU scooters in Nepal, offers a range of NIU models with variations in battery capacity, powertrain figures, and styling.
For customers interested in purchasing a NIU scooter, NIU offers finance and exchange options. With easy monthly instalments starting from NPR 8,864, customers can own a NIU scooter. To explore the details of the EMI plans based on the bank, down payment, and loan period, you can visit NIU's official website.
Okinawa
Bicky Enterprise Pvt. Ltd., the authorised distributor of Okinawa scooters in Nepal, offers a range of seven electric scooters. Okinawa, an Indian electric vehicle brand, are known for their scooter’s environmental friendliness and efficient performance.
To make owning an Okinawa scooter even more accessible, Bicky Enterprise has collaborated with Machhapuchhre Bank Limited (MBL) to provide a 0% interest EMI option. Customers holding credit cards or Instapay from the bank can purchase Okinawa electric scooters at 0% EMI for 6 to 18 months. This collaboration between Okinawa and MBL aims to encourage the adoption of electric scooters in Nepal.
Yadea
Yadea is a renowned premium e-scooter brand known for its exceptional design, advanced technology, and modern features. In Nepal, Yadea has four exciting models: Yadea C1S, Yadea G5, Yadea E8S Pro and Yadea S-Like.
For customers looking to own a Yadea e-scooter, Kuzu Nepal Pvt. Ltd., the authorised distributor of Yadea scooters in Nepal, offers convenient financing options through their EMI scheme. With a down payment of Rs. 50,000, customers can choose a loan tenure of 12 months. The EMI amount for the Yadea S-Like model is Rs. 10,000, while for the Yadea G5, it is Rs. 14,000.
Applying for EMI in Nepal
Documents Needed to Apply for an EMI in Nepal
When applying for a scooter EMI in Nepal, you will need to provide certain documents to complete the loan application process. These documents help verify your identity, address, income stability, and ownership of the scooter. Here is a list of essential documents typically required by lenders:
Passport Size Photos: Submit two recent passport-sized photographs along with your application. These photos should meet the specified dimensions and background requirements.
Citizenship Certificate/Passport Photocopy: Provide a photocopy of your citizenship certificate or passport as proof of your identity. This document helps establish your Nepali citizenship or residency.
Pictures of the Scooter: Before the implementation of EMI, it is common for lenders to require photographs of the scooter you intend to purchase. This helps document the condition and appearance of the scooter at the time of the loan application.
Driving License for Two-Wheelers: Include a photocopy of your valid driving licence for two-wheelers. This verifies your eligibility to ride a scooter and ensures compliance with the traffic regulations in Nepal.
Proof of Address: Provide copies of utility bills such as electricity or water bills that clearly display your name and current address. These bills serve as proof of your residential address.
Land Ownership Certificate Photocopy (if applicable): In some cases, lenders may require a photocopy of the land ownership certificate if you are pledging land as collateral for the scooter loan. This document verifies your ownership of the property.
MOA and AOA Photocopy (if applicable): If you are applying for a scooter loan as a company or business entity, the lender may request copies of the Memorandum of Association (MOA) and Articles of Association (AOA). These documents establish the legal framework and ownership structure of the company.
Proof of Stable Salary: Provide documents that demonstrate your stable salary or income, such as salary slips, bank statements, or income tax returns. This helps lenders assess your ability to repay the EMI on time.
Tax/PAN/VAT Certificate Photocopy: Include a photocopy of your Tax Identification Number (TIN), Permanent Account Number (PAN), or Value Added Tax (VAT) certificate. These documents serve as proof of your tax registration and financial compliance.
It's important to note that specific lenders or financing institutions may have additional document requirements or variations in the documentation process. It's advisable to contact the authorised showroom or lender directly to confirm the exact documents needed for your scooter EMI application.
By providing these documents accurately and promptly, you can ensure a smooth loan application process and increase your chances of securing the scooter EMI option that suits your needs.
How to Apply for EMI in Nepal?
Now, let's explore how you can apply for scooter EMI in Nepal. The process is straightforward and typically involves the following steps:
» Research and choose the scooter model that best suits your requirements.
» Visit the authorised showroom of the chosen brand and inquire about their EMI options.
» Consult with the showroom's finance department to discuss the loan amount, interest rate, and loan tenure.
» Prepare the necessary documents, including your citizenship ID card or passport, permanent address proof, recent passport-sized photographs, income proof, and bank account details for EMI auto-debit.
» Complete the loan application form, providing accurate information and any additional details required.
» Once your application is approved, make the down payment as per the agreed terms.
» Sign the loan agreement and complete the remaining documentation process.
» Congratulations! You are now the proud owner of a scooter with a convenient EMI plan.
Eligibility Criteria for Scooter EMI in Nepal
To apply for a scooter EMI in Nepal, there are certain eligibility criteria. Let's take a closer look at the eligibility criteria for obtaining a scooter EMI in Nepal:
Nepali Citizenship: To be eligible for a scooter EMI, you must be a Nepali citizen. This requirement ensures that the financing options are available to individuals who hold Nepali citizenship.
Age Requirement: The minimum age requirement for applying for a scooter EMI is 18 years. This ensures that only individuals who have attained legal adulthood are eligible for the financing options. On the other hand, the maximum age at the time of loan maturity is 65 years. This criterion ensures that individuals can comfortably repay the loan within a reasonable timeframe.
Ownership of Property: To strengthen the loan application, it is necessary to have at least one residential property in your name or in the name of your grandparent, father, mother, son, or spouse. This property should be located in any part of Nepal. The ownership of the property provides a sense of stability and collateral for the loan.
If you do not have your own house, there is an alternative option available. You can have someone else's property for the verification process. This means you can use the property owned by a relative or a trusted individual to fulfill the property ownership requirement. The verification process ensures that the property being used for verification purposes meets the necessary criteria.
It's important to note that these eligibility criteria may vary slightly depending on the specific financing institutions and scooter brands. Therefore, it is advisable to check the exact eligibility requirements mentioned by the brand or financial institution you intend to apply for a scooter EMI with.
Conclusion
The concept of EMI has definitely made scooter ownership more accessible and convenient for individuals in Nepal. Several leading scooter brands in Nepal offer EMI options, each providing different financing facilities and schemes to cater to the diverse needs of customers. So, if you're considering buying a scooter in Nepal, exploring the EMI options provided by reputable brands can make your dream of owning a scooter a reality.