Banks applying fixed interest rate in lending from tomorrow

KATHMANDU: Banks have published fixed interest rate on loan to be effective from Saturday.

While few banks have already maintained fixed interest rate on loan following direction of Nepal Rastra Bank (NRB) last month, majority of banks today published the fixed interest rate on loan that have at least one year or more repayment period effective from Saturday.

Amending its Unified Directives 2019, the central bank on November 9 had asked the banks to maintain stable interest rates in the mobilisation of credit for more than a year’s period. However, banks had sought mid-October time from NRB to implement this direction.

The new fixed interest rate of banks will be applicable to all individual loans, including home loan/housing loan, auto/vehicle loan and hire-purchase loan, given with more than a year’s repayment period, that have monthly or other periodic repay provisions.

Among others, the Standard Chartered Bank has announced that it will charge interest rate on such loan between 10.75 per cent to 13.75 per cent while Nepal Investment Bank has set interest rate between 7.99 per cent to 13 per cent on such loans.

Similarly, NMB bank has fixed the interest rate between 9.49 per cent to 13.99 per cent while Rastriya Banijya Bank has set interest rate between 9 per cent to 11 per cent.

Likewise, Nepal Bank and Global IME Bank has fixed interest rate between 9.35 per cent to 13. 93 per cent and 7.99 per cent to 13.99 per cent, respectively.

As per the earlier directive of NRB,  changes in the terms of loan, repayment schedule or instalment amount should not be considered rescheduling or restructuring and the fixed interest rate should be set and published on a half-year basis.
On top of that, banks can change the interest rate in the deposits a month in advance.

Fiscal Nepal |
Friday October 16, 2020, 12:13:10 PM |

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