Loan Interest Rates Decline by 1.48 Percent

According to recent data, the loan interest rate of commercial banks has decreased by 1.48 percent, reaching 6.77 percent by the end of the fiscal year in Chaitra month. Development banks’ loan interest rate stood at 7.96 percent and finance companies’ at 9.26 percent as of the end of Chaitra 2082. Deposit interest rates up to Chaitra this fiscal year are currently 3.40 percent for commercial banks, 3.77 percent for development banks, and 4.74 percent for finance companies. This update was reported on 28 Baishakh from Kathmandu.

Loan interest rates have dropped by 1.48 percent by Chaitra in the current fiscal year. The decrease in interest rates is attributed to increased liquidity in the financial system paired with stagnant loan demand. The weighted average interest rate on loans from commercial banks was 6.77 percent at the end of Chaitra, which is 1.48 percent lower compared to the same period last year when it was 8.22 percent.

The central bank has reported that development banks’ loan interest rate is 7.96 percent and finance companies’ is 9.26 percent. By Chaitra 2081, these rates were 9.59 percent for development banks and 10.40 percent for finance companies. Deposit interest rates as of Chaitra 2082 are 3.40 percent for commercial banks, 3.77 percent for development banks, and 4.74 percent for finance companies. Previously, at the end of Chaitra 2081, deposit interest rates were 4.45 percent for commercial banks, 5.22 percent for development banks, and 6.24 percent for finance companies.