Kathmandu. In October, commercial banks have increased the interest rate of loans. As the banks increased the base rate, the loan interest also increased dramatically. In October, the average base rate of banks was 9.56 percent, but in October, it was increased to around 10.5 percent.

Among the commercial banks that announced interest rates, Mega Bank, Kumari Bank, Century Bank, Sanima Bank, Siddharth Bank, Everest Bank, Rashtriya Commercial Bank and Standard Chartered Bank have increased their base rates.

Mega Bank increased from 10.19 percent to 10.46 percent, Kumari Bank increased from 10.49 percent to 10.87 percent, Century Bank increased from 10.40 percent to 10.75 percent, Sanima Bank increased from 9.57 percent to 10.41 percent, Siddharth Bank increased It increased from 9.5 percent to 9.85 percent, Everest Bank increased from 8.92 percent to 9.25 percent, National Commercial Bank increased from 7.86 percent to 8.20 percent and Standard Chartered Bank increased from 8.4 percent to 8.45 percent.

There is a policy arrangement of Rashtra Bank that allows banks to change the Aadhaar rate in three months. According to the same arrangement, banks have increased the base rate. Banks determine the interest rate by adding a certain percentage premium to their base rate. When the base rate of banks increases, the interest rate of loans also increases automatically. When the base rate decreases, the interest rate of banking loans also decreases.

Sunrise Bank has announced the base rate for the month of June. Earlier, the bank had announced the base rate for the month of July as 10.42 percent, but now it has announced the base rate for the month of June as 10.08 percent. Nepal SBI Bank, Prime Bank, NMB Bank, Civil Bank, Prabhu Bank, NCC Bank, Krishi Bikas Bank, Nabil Bank and Nepal Bank have kept the base rate unchanged.

Nepal SBI Bank 10 percent, Prime Bank 9.99 percent, NMB Bank 9.95 percent, Civil Bank 9.5 percent, Prabhu Bank 9.42 percent, NCC Bank 9.35 percent, Krishi Bikas Bank 8.90 percent, Nabil Bank's is 8.77 percent and Nepal Bank's 7.99 percent. These banks have to maintain the previous base rate.

At present, the base rate of most commercial banks is in double digits. Borrowing from banks with base rates in double digits will cost more. Adding the premium in these banks, the interest rate of the loan becomes more than 18 percent. As the banks have increased the base rate as well as the premium, it is seen that the interest rate of most of the banks' loans will reach around 18 percent. It is seen that the bank charges up to 18 percent interest on the loan while taking 11 percent base rate and 7 percent premium.

The spread rate, which is around half a percent, has also increased to 4 percent. Banks are going to apply the interest rate of the month of October while keeping the deposit interest rate unchanged. Currently banks are offering maximum interest of 12.133 percent on deposits. Similarly, banks have set interest rates up to 15 percent on remittance term accounts. Banks have set 10.333 percent interest rate on ordinary savings account.