Banks and financial institutions had disbursed Rs 183 billion in higher purchases till December last year. Car loans have declined as the economy has stagnated due to Covid. NRB has informed that the flow of credit has decreased as the old loan is maturing and new loan has not been added. Banks and financial institutions have been giving loans up to 65 percent in higher purchases.
Despite the decline in higher purchase loans in the first six months of the current fiscal year, real estate loans and margin lending loans have increased. Banks and financial institutions have increased margin lending to Rs 75.70 billion by mid-December. As of last December, banks and financial institutions had disbursed Rs 67.85 billion in this sector.

As of December of the last fiscal year, it was only Rs. 45.67 billion. In one year, margin lending increased by 65.76 percent to Rs. 75.70 billion. Lately, the stock market has started setting new records daily. The bull market has seen an increase in the number of investors investing in stocks secured by banks and financial institutions. Banks and financial institutions have been giving loans up to 6570 percent on the security of shares.

Similarly, real estate loans have also increased significantly in the first six months of the current fiscal year. Banks and financial institutions have disbursed Rs. 168.66 billion to the real estate sector so far this fiscal year. Till last month, such loans were Rs 167.55 billion, while in December last year, only Rs 161 billion was disbursed.

Nepal Rastra Bank (NRB) has fixed the loan security price ratio at 40 percent for loans within the Kathmandu Valley and 50 percent for other places. In other words, 40 percent of the collateral will be available in the Kathmandu Valley and up to 50 percent of the collateral outside the Kathmandu Valley.

The real estate sector has seen a resurgence in open economic activity among the Kovids. Along with the increase in real estate business, the number of institutions taking loans from banks has also increased. Investors seeking secure investment have begun to increase their investment in the sector.