Kathmandu. There has been a significant increase in share collateral loans (margin nature loans) disbursed by commercial banks in Nepal. According to the data up to mid-Magh of the current fiscal year, such loans have increased by 42.90 percent compared to the same period last year.

Such loans, which were 93.12 billion 49 million rupees as of mid-Magh last year, have reached 133.76 billion rupees as of mid-Magh this year. Looking at the data of a total of 19 commercial banks, it is seen that the investment has expanded by more than 42 billion rupees overall.

Nabil Bank's aggressive Investment for Share Collateral loan
According to the data, Nabil Bank is at the forefront of share-backed loan flow. Nabil has disbursed Rs 17.5 billion 33 million as of mid-Magh. This is an increase of 35.06 percent compared to Rs 12.95 billion 95 million last year.

Similarly, Global IME Bank, which is in second place, has disbursed Rs 13.39 billion 69 million. Kumari Bank and Prime Bank are in third and fourth place respectively with Rs 10.59 billion 34 million and Rs 9.79 billion 31 million. Prime Bank's loan expansion has increased by 49.39 percent compared to the previous year.

Although Nabil is ahead in terms of loan amount, Agriculture Development Bank has made the biggest leap in terms of growth rate. This bank's loan flow has increased by 286.30 percent to Rs 7.87 billion 73 million. Last year, the bank had disbursed only Rs 2.39 billion 91 million in loans during the same period.

Similarly, Machhapuchhre Bank's loan investment has increased by 181.09 percent, Laxmi Sunrise Bank's by 115.3 percent and NMB Bank's by 87.25 percent. NIC Asia Bank has expanded its investment by 86.03 percent and Sanima Bank's by 81.8 percent.

Nepal Bank's share collateral loan has decreased by 10.27 percent to Rs 6.93 billion. Similarly, Citizens Bank has also decreased by 3.95 percent to Rs 5.90 billion.

Siddhartha Bank has invested Rs 8.93 billion, Rastriya Banijya Bank Rs 8.9 billion, Prabhu Bank Rs 6.63 billion and Everest Bank Rs 4.38 billion in share collateral. Similarly, Nepal Investment Mega Bank has invested Rs 4.2 billion, Himalayan Bank Rs 3.34 billion and Nepal SBI Bank Rs 596.1 million.

19 banks, excluding Standard Chartered Bank, have mobilized more than Rs 133 billion in the market as share-backed loans.

Share Collateral loan in Nepal

Maximum Limit: Generally, banks allow up to NPR 200 million (NPR 20 Crore) as per regulatory norms, often capped at 50% for promoter shares in some institutions.

Tenure: Usually 1 year, with options for renewal.

Interest Rates: Often tied to the bank's base rate plus a premium (e.g., Base Rate + 2.00% to 4.00% or higher).

Purpose: Investment in shares, trading, or personal obligations