KATHMANDU: Banks and financial institutes have denied issuing loan to power-operated vehicles breaching the provision laid down in the government’s existing policies and programs.

Banks have hesitated to issue loan despite Nepal Rastra Bank (NRB)’s direction that they should provide loan to electric vehicles through the Ministry of Finance, said Sundar Yatayat P. Ltd.

Sundar Yatayat P. Ltd. in a statement said banks denied it loans for electric vehicles despite frequent requests.

“Banks seem reluctant on issuing loan to electric vehicles despite assurance of collateral in line with the Nepal government’s regulations,” reads the statement.

It is the first company that brought electric vehicles into operation.