KATHMANDU, Sept 20: Banks and financial institutions (BFIs) are offering loans at average interest rates ranging from 5.53 percent to 7.30 percent per annum.
As per the records with Nepal Rastra Bank (NRB), the lowest average interest rate is observed on loans extended to the deprived sector. The interest rate on deprived sector lending stands at as low as 5.53 percent. This is followed by loans against shares as collateral, in which the BFIs issue loans at an average interest rate of 6.36 percent under this heading.
Revised interest rate corridor system introduced
The average interest rate for real estate loans stands at 6.65 percent. Similarly, the average interest rate for residential loans of up to Rs 20 million is 6.92 percent. The average interest rate for auto loans is 6.99 percent.
As loan interest rates continue to decline, it has now become possible to obtain loans from banks and financial institutions at an average rate of less than 6.48 percent, the lowest rate till date, according to the NRB.
With excess liquidity persisting in the banking system and slump in demand for loans, the BFIs have been facing pressure to offer loans at low interest rates. Bankers said the actual interest rate payable by the customer may differ, mainly as the base rate, premium rate, nature of the loan, and customer risk assessment vary among the BFIs.
