Kathmandu. Everest Bank is going to give share mortgage loan at low premium rate. The bank is going to give share loans by adding a minimum premium of 0.5 percent to 2.50 percent on the base rate. Currently, the base rate of the bank is 9.21 percent. Based on this, customers who take share loans from Everest will have to pay a maximum of 11.71 percent interest.

Lately, banks have started reducing interest rates on loans along with deposits. With the increase in liquidity in the banking system, the interest rates of the banks have been decreasing recently. As the interest rate is decreasing, the cost of the banks is also decreasing, which has also affected the base rate of the banks. In other words, the base rate of banks is also decreasing. When the base rate decreases, the interest rate of the loan also becomes cheaper. After this reduction, borrowers get loans at cheaper interest rates. Now the base rate of most of the banks has come down to single digits.

On the other hand, banks and financial institutions have also launched various offers to increase investment. Recently, as the amount of money that can be invested in banks is increasing, banks have started offering loans at low interest rates. It seems that banks are trying to increase investment in special real estate and share loans. They are ready to give loans at a single digit interest rate to increase the home loan. On the other hand, there is a search to invest in share loans by reducing the premium rate.

Nepal Rastra Bank has reduced the risk burden of share mortgage loans and real estate loans through the review of the monetary policy of the current financial year. The central bank has reduced the risk weight on share mortgage loans with margin above 50 lakhs from 150% to 125% and reduced the risk weight on real estate loans from 150% to 125%. With this policy of the National Bank, banks are seen to be leading to increase share loans.

Everest Bank has given the lowest premium among the operating ones. According to the base rate of the banks, it indicates that the interest to be paid when taking a loan is cheap and expensive. Banks charge a premium of up to 5 percent depending on the nature of the loan.

Currently, Nabil Bank's share loan is charging a premium of 1 to 4 percent. The base rate of the bank is 9.3 percent. In share loans, Nepal Investment Mega Bank, Prime, Himalayan and Nepal Bank have set a premium rate of up to 5 percent. Currently, the base rate of these banks is 9.81 percent, 10.68 percent, 10.86 percent and 9.05 percent respectively.

Similarly, NMB Bank, Citizen, Siddharth, Lakshmi Sunrise Bank have set a maximum premium rate of 4 percent for share loans. Now the base rate of these banks is 9.81 percent, 10.39 percent and 9.63 percent respectively.

Similarly, Kumari and Sanima Bank have also set a premium of 1.50 percent to 3.50 percent for share loans. Global IME has set a premium rate of 3.5 percent, NIC Asia 3 percent, Prabhu 3 percent to 5 percent, Standard Chartered 4.5 to 5 percent, Machhapuchhre 1 to 4 percent and Nepal SBI has set a premium rate of 2 to 4 percent. Banks provide loans by adding a premium to the base rate.