Interest rate declines to historic low; BFIs offer loans for 5.53-7.30 percent
Summary
Banks and financial institutions are offering loans at average interest rates ranging from 5.53 percent to 7.30 percent as excess liquidity and weak credit demand push rates to historic lows. The lowest average rate is on deprived sector lending, while real estate, residential and auto loans also remain relatively cheap.
Key Points
- Banks and financial institutions are offering loans at average interest rates of 5.53 percent to 7.30 percent per annum.
- The lowest average rate is 5.53 percent for deprived sector lending, followed by loans against shares at 6.36 percent and real estate loans at 6.65 percent.
- Residential loans of up to Rs 20 million average 6.92 percent, while auto loans average 6.99 percent.
- Nepal Rastra Bank says the banking system’s excess liquidity and weak loan demand have pushed borrowing costs to historic lows.
