Kathmandu. While the demand for loans in the banking sector has slowed down, the share mortgage loans have increased rapidly. In one year, banks have provided loans of more than 13.5 billion in share securities. The statistics obtained from Nepal Rastra Bank for the last fiscal year 2080-81 from July to mid-June showed this. In one year, share mortgage loans have increased by 18.1 percent. By the end of last June, banks had invested a total of 76 billion 30 million 83 million rupees in loans. However, by the end of last June, it has increased by 13 billion 13 billion 78 billion 49 million rupees. Along with this, banks have invested 90 billion 932 million rupees in share mortgage loans.

In the last year, more than 1 crore share mortgage loans have increased. During one year, the loan of such limit has increased by 25.1 percent. By the end of June last year, banks and financial institutions had invested 44.71 billion 61 million rupees in loans. However, in the last year, the share mortgage loan amounting to more than 10 million has reached 55.93 billion 2 lakh rupees. Investors in that limit have purchased shares by taking loans of 11 billion 21 crore 41 lakh rupees in one year.

Similarly, share mortgage loans ranging from 2.5 million to 5 million rupees have also increased by 12.8 percent. Such limit banks have given 1 billion 64 crore 12 lakh rupees in one year. Till the end of last June, 12 billion 78 crore 19 lakh rupees was disbursed in this limit. However, in the same period last year, it has increased to 14 billion 42 billion 31 lakh rupees.

In the last year, there was an increase of 5.5 percent in share mortgage loans above 50 lakhs and 3.9 percent in loans up to 25 lakhs. Last year, such limits were Rs 65.32 lakh and Rs. 27 crore 64 lakh respectively. By the end of June of the previous year, banks and financial institutions had provided loans of Rs. However, as of last year, this limit has been fixed at 12.42 billion 77 million and 7.31 billion 23 million rupees respectively.

In particular, policy flexibility seems to have contributed to the growth of share mortgage loans. Nepal Rastra Bank has introduced some loose policies through the monetary policy of the current financial year. The Central Bank has canceled the limit of Rs 20 crore imposed on institutional investors in margin nature of share mortgage loans. It is said that this will further increase the amount of loans that will flow into share securities in the future.

Lately, the interest rates of banks are continuously decreasing month by month. As interest rates started to decrease, share mortgage lending also increased. Due to the economic slowdown, overall loan demand is very slow. However, share mortgage loans have increased in double digits.

In recent times, the investable amount in the banking system has increased. As the liquidity in the system becomes easier, the interest rates of the banks are decreasing. As the interest rate is decreasing, the loan disbursement is increasing. Gradually, the stock market is also increasing.