January 30, 2025
Hire purchase is an arrangement for buying expensive goods. Simply put, a hire purchase loan is a type of financial arrangement where the buyers make a certain downpayment instead of paying upfront and spread the cost in installments.
How Hire Purchase Loan Works
Benefits Of a Hire Purchase Loan
Considerations When Opting for Hire Purchase Loans
Hulas Finserv’s Hire Purchase Offerings
Conclusion
FAQs
Here is how hire purchase loan works:
Ownership Transfer
The buyer takes possession of the item immediately after the agreement is made. However, he doesn’t own it completely, until all installments and interest are paid fully.
Down Payment
A percentage of the item’s cost (down payment) is usually required upfront.
Monthly Installments
The buyer pays the remaining balance and interest within the predetermined tenure period.
Ownership Completion
Ownership of the item is fully transferred to the buyer when all payments are made.
There are numerous benefits of an Hire Purchase loan.
No Large Upfront Payment
There is no need to pay the full price of the item all at once. Instead, you pay a smaller amount (down payment) upfront, and the rest is divided into monthly installments. This makes it easier to afford expensive things by staying within budget.
Immediate Use
Even though you haven’t finished paying for an item, with an Hire Purchase Loan, you can start using the item right after the agreement is signed. You don’t have to wait until you’ve paid the full amount.
Manageable Payments
The total cost is spread over several months or years depending upon the financial institution, which means you pay smaller amounts at a time. This makes it easier to fit into your monthly budget.
Flexible Terms
Hire purchase loans often come with flexible repayment terms. You can choose a plan that suits your financial situation. The customizable repayment period helps to cater to the diverse needs of everyone.
Improves Credit Score
Making your payments on time helps to build or improve your credit score. As a result, you qualify for other loans in the future.
Ownership at the End
The item becomes fully yours once all the payments are made. You can enjoy the benefits from the beginning while paying gradually.
Budget-Friendly for Big Purchases
There is financial pressure while making a big purchase. However, an Hire Purchase loan allows one to buy costly items without feeling the pressure of paying the full amount at once. This is especially useful for people who want to manage their cash flow better.
When choosing an Hire Purchase loan, here are some things to keep in mind:
Total Cost
You might end up paying more than the product’s original price because of interest charges. Make sure you understand the total amount you’ll need to pay before agreeing to the loan.
Ownership Rights
You won’t own the item until you’ve paid off the full loan. If you miss payments, the lender can take back the item.
Maintenance Responsibilities
Even though you don’t own the product right away, you are usually responsible for taking care of it during the loan period.
Hulas Finserv Hire Purchase Ltd., part of the Golchha Group, has been helping people with easy financing options since 2012. Approved by Nepal Rastra Bank, we provide simple, affordable, and clear loan services. This allows customers to buy what they need while maintaining financial health.
Our services cover a range of products, including two-wheelers, three-wheelers, four-wheelers, consumer electronics, furniture, and laptops. Here’s a simple breakdown of our loan details:
Two-Wheelers: Borrow up to 70% of the cost. Payback in 6 to 36 months with interest rates from 0% to 14%.
Three-Wheelers: Get up to 70% of the cost as a loan with a 24-month repayment plan and interest rates from 0% to 14%.
Four-Wheelers: Loans cover 60% of the cost. You can repay over up to 60 months with a 13% interest rate.
Consumer Electronics: Borrow up to 70% of the cost, and pay in 6 to 12 months with 0% interest.
Furniture: Get a loan for 50% of the cost, repay in 6 to 12 months, no interest.
Laptops: Loans cover 60% of the cost, and repay in 3 to 12 months with 0% interest.
The interest rates can change from time to time. Before making any decision visit the website to check the most up-to-date rates.
A hire purchase loan lets you buy expensive goods without paying all at once. Are you planning to purchase high-value items but are worried about managing your financial health? Consider Hulas Finserv as your go-to financial partner. Visit the Hulas Finserv website to check the latest rates and get started today.
What is a hire purchase loan?
Hire Purchase loan is a way to buy something expensive by paying a small amount first and then paying the rest in easy monthly payments. You get to use the item immediately, however, don’t fully own it until you’ve paid off everything.
What is the difference between a hire purchase and a personal loan?
A hire purchase lets you use something right away but you only own it after paying all installments, while a personal loan gives you full ownership from the start.
Which is the best hire purchase company in Nepal?
Hulas Finserv is one of the best hire purchase companies in Nepal.
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