Life Insurance Policy Loans Surge to Over NPR 95 Billion in Nepal

Kathmandu – Life insurance companies in Nepal have collectively disbursed loans exceeding Rs 95.33 billion against insurance policies by the end of the second quarter of the current fiscal year. This marks a 6.62% increase compared to the same period last year when the total loan disbursement stood at Rs 89.41 billion.

According to the financial reports published by 14 life insurance companies, Nepal Life Insurance remains the highest lender, disbursing Rs 35.24 billion in loans. LIC Nepal follows in second place with Rs 21.83 billion, while National Life has provided Rs 11.56 billion. Other major lenders include Himalayan Life (Rs 7.38 billion), Asian Life (Rs 5.1 billion), SuryaJyoti Life (Rs 4.44 billion), and Rastriya Jeewan Beema Company (Rs 2.67 billion).

Additionally, Met American Life has disbursed Rs 1.81 billion, Sanima Reliance Rs 1.36 billion, Prabhu Mahalakshmi Life Rs 1.13 billion, Citizen Life Rs 918.5 million, IME Life Rs 819.8 million, Sun Nepal Life Rs 652.8 million, and Reliable Nepal Life Rs 460.3 million.

Loan Growth Trends

In terms of growth rate, IME Life recorded the highest increase in loan disbursement, rising by 37.60% compared to last year. Citizen Life followed with a 31.89% rise, while Reliable Nepal Life (29.76%), Sun Nepal Life (25.06%), Sanima Reliance (22.02%), SuryaJyoti Life (21.98%), and Himalayan Life (18.21%) also reported significant growth.

Among other insurance companies, Prabhu Mahalakshmi Life saw a 16.69% increase, Met American Life 8.62%, Nepal Life 7.59%, Asian Life 4.91%, and National Life 2.98%. However, LIC Nepal saw a slight decline of 0.41%, while Rastriya Jeewan Beema Company recorded a 7.59% decrease in loan disbursement.