Kathmandu. Loans from banks and financial institutions have increased in the first half of the current fiscal year. In the first six months of the current fiscal year, 66.3 percent of the loans of banks and financial institutions were mortgaged, according to the Nepal Rastra Bank. In the corresponding period of the previous fiscal year, credit to banks and financial institutions stood at 64.9 percent.

According to the central bank, 12.2 percent of loans of banks and financial institutions during the review period were secured by current assets (agricultural and non-agricultural commodities). In mid-January 2012, the ratio of such collateral loans was 13.5 percent.

Of the total investment of banks and financial institutions during the same period, credit to agriculture sector was 20.2 percent, credit to industrial manufacturing sector was 6.9 percent, credit to construction sector was 6.3 percent, credit to transport, communication and public services sector was 6.9 percent, wholesale and retail. Credit to trade increased by 9.5 percent and credit to services increased by 11.9 percent. Of the loans disbursed by banks and financial institutions during the period under review, term loans were 11.5 per cent, overdraft loans 13.4 per cent, demand and working capital loans 13.6 per cent, real estate loans (including personal housing loans) 4.0 per cent, margin nature loans. Trust receipts (import) loans increased by 50.2 percent and higher purchase loans decreased by 4.4 percent.