CIT & EPF raises interest rate on both saving and credit effective from today

KATHMANDU: The Employees Provident Fund (EPF) and Citizen Investment Trust (CIT)  are increasing their interest rate on the collected funds effective from Sunday– the first day of the new fiscal year 2022/23.

Amid surge in market interest rates by the banks and financial institutions recently, these government entities are also revising the interest rates on the amount they receive as deposit. These organizations will also be raising the interest rate for the borrowers.

According to the EPF, it is increasing the interest rates on both the deposits and lending by 1.5 percent per annum. In the revised rate, the savers in EPF will be receiving eight percent interest while the borrowers on home loan, education loan and house maintenance loan will have to pay 9.75 percent in interest.

Similarly, the borrowers from EPF to purchase land will have to pay 10.25 percent interest rate. More than 600,000 employees working in the government and the private organizations are the contributors to the EPF.

Likewise, the CIT is raising the interest rate on its pension fund from 6.5 percent to eight percent annually. The borrowers, who can take up to 80 percent of the contributed amount in loans, will have to pay interest of 9.5 percent per annum.