Kathmandu. Interest rates on loans have come down massively. It has decreased by almost two and a half percentage points in one year. The statistics of the current economic and financial situation of the country for the last financial year 2080-81 published by Nepal Rastra Bank.

In the last year, the interest rate of development banks' loans has also decreased by 2.70 percentage points. In the previous year, the interest rate of Bikas Bank's loan was 14.10 percent. However, in the last year, it has decreased to 11.34 percent. On the other hand, the loan interest rate of finance companies has also decreased by 2.27 percent to 12.55 percent.

Lately, the interest rate of banks' loans has been decreasing month after month. According to Rastra Bank, the average loan interest rate was 10.15 percent in May, 10.34 percent in May and 10.55 percent in March. Since the beginning of last year, the loan interest rate has been continuously decreasing. Last July, this interest rate was 12.24 percent. Similarly, it was 12.23 percent in August, 12.11 percent in October, 11.96 percent in October, 11.85 percent in November, 11.39 percent in January, 11.08 percent in January and 11.78 percent in February.

Investable funds are accumulated in the banking system. Despite the increase in deposits, the demand for loans is low. As the demand for loans does not increase, the interest rate of deposits is also continuously decreasing. Which is continuously reducing the interest rate of the loan.

During the last one year, the interest rate of commercial bank deposits has also decreased by 2.09 percentage points. At the end of the previous year, the average interest rate of bank deposits was 7.86 percent. However, in the last year, it has decreased to 5.77 percent. On the other hand, the deposit interest rate of Bikas Bank has also decreased from 9.14 percent to 6.63 percent and that of finance company has decreased from 9.79 percent to 7.93 percent.

As the interest rate of deposits has decreased, the cost of the banks has also decreased. As the cost decreases, the base rate of banks is also decreasing. At present, the base rate of banks has reached a single digit. The base rate of commercial banks has also decreased by 2.03 percentage points to 8 percent during one year. On the other hand, Bikas Bank's base rate also decreased from 12.15 percentage points to 9.71 percent and finance company's from 13.41 percent to 11.21 percent.