Kathmandu — Over the past 16 years, MAW Hire Purchase Pvt. Ltd. has established itself as a key pillar in Nepal’s financial landscape, becoming a vital catalyst for entrepreneurship and consumer financing. Fully licensed by the Nepal Rastra Bank (NRB) since 2070 BS (2013), the company is successfully bridging the financial access gap for everyday consumers and unbanked populations across the country.

Diversified Financing: From Smartphones to Heavy Machinery

Traditionally known for financing two-wheelers, four-wheelers, commercial vehicles (trucks, buses, tractors), and heavy construction equipment (excavators, backhoe loaders), MAW Hire Purchase has aggressively expanded its portfolio. Under the leadership of General Manager Pran Nath Bhattarai, the company now finances electric vehicles, multi-brand automobiles outside the MAW group, and even used cars through recondition houses (offering up to 50% financing on second-hand vehicles).

Adapting to shifting consumer trends, the company ventured into the consumer electronics space two years ago. It currently offers highly attractive 0% interest EMI options for premium mobile phones (costing above NPR 30,000) from brands like Xiaomi and Vivo. Under this scheme, customers make a 40% down payment and pay the remaining 60% over 9 to 12 months with zero added interest. The company is actively working to bring more smartphone brands into this financing loop.

Strong Financial Fundamentals and Low Risk

By regulation, hire purchase companies in Nepal cannot collect public deposits. Instead, they rely on their paid-up capital, retained earnings, and wholesale borrowing from commercial banks. The NRB mandates a minimum paid-up capital of NPR 300 million (30 Crores) and permits these companies to borrow up to 10 times their net worth.

MAW Hire Purchase currently holds a strong net worth of around NPR 670 to 700 million. Despite its massive borrowing capacity, the company has maintained a healthy leverage, utilizing only about 5.28 to 5.3 times its net worth (borrowing roughly NPR 3.8 billion from banks). To date, the company has successfully disbursed over NPR 5.01 billion in loans, extending financial services to more than 60,000 customers.

Remarkably, despite the current economic climate, the company’s Non-Performing Loan (NPL) ratio stands at a very low 1.95% (down from 2% the previous year). This exceptionally low rate is a testament to their strict credit appraisal standards, loan diversification, and efficient digital recovery mechanisms.

Credit Rating Upgrade

Reflecting this solid financial health and robust risk management, MAW Hire Purchase recently received a notable credit rating upgrade from ICRA Nepal. The agency upgraded the company’s long-term borrowing rating from LBB+ to LBBB-, and its short-term rating from A4+ to A3+. This upgrade validates the company’s operational stability, paving the way for increased lending capacity in the future.

Expanding Financial Inclusion

A core strength of MAW Hire Purchase is its nationwide footprint and customer-centric approach. While traditional bank loans can involve tedious paperwork and require branch visits, MAW Hire Purchase frequently reaches customers directly at their locations—even in remote and rural areas where banking access is scarce.

“Whether it is a twenty-thousand-rupee mobile phone or a one-crore bus, we have specialized mechanisms to provide accessible financing,” says GM Pran Nath Bhattarai.

With ample borrowing capacity remaining and an upgraded credit rating, MAW Hire Purchase plans to continually expand its services into new sectors, maintaining its reputation as a reliable partner for aspiring entrepreneurs and consumers alike.