33 And a Half Billion Rupees Loan Disbursement From Banks and Financial Institutions

Kathmandu : Loans from banks and financial institutions to the private sector have increased by 0.7 percent in the month of August of the current financial year 2023-024. According to data released by Central Bank, 33 billion 600 million rupees of loans were disbursed from banks and financial institutions during the review period.

During the same period of the previous year, such loans increased by 0.5 percent and stood at 2 billion 43 million rupees. On an annual point-by-point basis, loans from banks and financial institutions to the private sector increased by 4.0 percent at the end of August. According to public information, in the end of August, among the loans from banks and financial institutions to the private sector, the share of loans to the non-financial institutional sector was 63.0 percent and the share of loans to individuals and households was 37.0 percent.

In the same period of the previous year, this share was 63.8 percent and 36.2 percent, respectively. Similarly, among the loans to the private sector during the review period, commercial banks increased by 0.8 percent, development banks increased by 0.1 percent, and finance companies increased by 0.3 percent.

Of the loans invested by banks and financial institutions, 12.1 percent of the loans are secured by current assets (agricultural and non-agricultural goods), while 67.2 percent of the loans are secured by real estate mortgages.