Kathmandu: The interest rate of share mortgage loans provided by banks and financial institutions has also started to decrease. Banks and financial institutions have been reducing interest rates on deposits due to excess liquidity for a long time.

When the interest rate is cheap, it is seen that investors who take loans by keeping shares as mortgages have also increased. Central Bank data shows that the number of people taking share mortgage loans is also increasing every month as the interest rate is decreasing. According to the data of the Central Bank, till the end of March, share loans worth 86.18 billion rupees have been disbursed. By the end of last June, share mortgage loans worth 76 billion 30 million rupees were disbursed. Based on this data, share mortgage loans increased by 12.3 percent in 10 months.

Share mortgage loan interest rate in Banks of Nepal 

Commercial banks have been extending share mortgage loans by adding some additional premium to the base rate. The base rate of banks is decreasing.

Now the base rate of many banks has fallen to single digits in the data. Banks have said that they have been providing loans by adding a premium from a minimum of zero to a maximum of 5 percent points on the base rate. Standard Chartered Bank has the lowest base rate. The base rate of National Commercial Bank is 7.35 percent. The bank has been providing loans by adding an additional 2.25 percent to 2.75 percent premium to this rate. According to which, when taking a share loan from this bank, the minimum interest rate is determined from 9.6 percent to 10.1 percent.