Banks and financial institutions increased loans to the private sector by 8.4% in FY 2081/82, reaching NPR 4.23 trillion. Of these loans, 62.8% went to non financial institutions and 37.2% to individuals and households.
By type of bank, commercial banks’ lending rose 8.6%, development banks 6.1%, and finance companies 8.4%.
Collateral-wise, 64.7% of loans were secured by land and property, while 14.5% were backed by current assets, slightly down from last year’s 66.5% and 13.2% respectively.
Sector-wise, loans grew in industrial production (7.9%), transport, communication & public services (15.5%), wholesale & retail trade (3.4%), and service industries (12.8%), while agricultural loans fell by 0.2%.
Loan type growth: term loans 7.1%, real estate loans 5.9%, margin loans 56.2%, trust receipt (import) loans 51.1%, hire purchase loans 3.7%, demand & working capital loans 13.2%; overdraft loans decreased by 10.4%.
