Interest Rates in Financial Sector Drop by Over 1 Percent

As of the end of Baisakh in the current fiscal year, the average base rate of commercial banks has decreased to 4.97 percent compared to the previous year. During this period, the average base rates of development banks and finance companies stood at 6.95 percent and 7.30 percent respectively, according to the Nepal Rastra Bank. The weighted average interest rate on loans is recorded at 6.73 percent for commercial banks, 7.87 percent for development banks, and 9.14 percent for finance companies. (May 26, Kathmandu)

By the end of Baisakh in the current fiscal year, the average base rate of commercial banks was 4.97 percent. This interest rate is more than 1 percent lower than the same period in the previous fiscal year. According to the Nepal Rastra Bank, the average base interest rate for commercial banks was 6.17 percent during the last fiscal year. Likewise, up to Baisakh of the current fiscal year, development banks’ base rate was 6.95 percent, and finance companies’ was 7.30 percent.

At the end of Baisakh 2082, the average interest rates of development banks and finance companies were 8.24 percent and 9.11 percent respectively. By Baisakh 2083, the weighted average deposit interest rates for commercial banks stood at 3.35 percent, development banks at 3.70 percent, and finance companies at 4.59 percent. At the end of Baisakh 2082, these deposit interest rates were 4.37 percent for commercial banks, 5.11 percent for development banks, and 6.15 percent for finance companies.