Personal Housing Loans Surge as Interest Rates Drop

Kathmandu – The demand for personal housing loans has seen a sharp rise as interest rates continue to decline, rejuvenating the real estate sector. Banks and financial institutions have been offering loans of up to Rs 20 million for personal housing construction, drawing significant interest from citizens eager to build or purchase homes.

The decline in loan interest rates, driven by lower deposit rates and increased liquidity in the banking system, has fueled this surge. Previously, high interest rates and liquidity shortages had slowed loan flows, but the current environment has become more favorable for borrowers. Banks have introduced attractive schemes, including single-digit and fixed-rate interest loans, making housing loans more accessible and affordable.

NIC Asia Bank has emerged as the leading provider of personal housing loans, disbursing Rs 56.3 billion. Other major contributors include Global IME Bank with Rs 35.77 billion, Nabil Bank with Rs 26.49 billion, and Rastriya Banijya Bank with Rs 25.94 billion. Similarly, Everest Bank, Lakshmi Sunrise Bank, and NMB Bank have also played significant roles, providing loans of Rs 22.84 billion, Rs 18.52 billion, and Rs 15.97 billion, respectively.

The increased availability of affordable loans has not only reignited enthusiasm among potential homeowners but also intensified competition among banks.