According to Nepal Rastra Bank’s latest data (up to the end of Jestha 2082), share mortgage loans (margin loans) increased by 42.8% compared to last Ashar. In total, share loans grew by Rs. 38.57 billion in the last 11 months.
Last Ashar, the total share loan amount stood at Rs. 90.09 billion, and now it has reached Rs. 128.67 billion.
Loan Types That Increased
| Product Type | Growth (%) | Key Highlights |
|---|---|---|
| Import/Trust Receipt Loan | 🔼 62.24% | Highest growth; driven by trade activity. |
| Margin Nature Loan (Share Loan) | 🔼 42.82% | Second-highest; increased investor confidence in share market. |
| Bills Purchased | 🔼 46.94% | Suggests rise in short-term credit demand. |
| Demand & Working Capital Loan | 🔼 17.86% | Linked to improved business operations. |
| Other Products | 🔼 15.82% | Includes diversified credit products. |
| Hire Purchase Loan | 🔼 5.52% | Suggests rise in vehicle/asset financing. |
| Term Loan | 🔼 5.11% | Consistent demand; largest in total volume. |
| Residential Home Loan (Up to Rs. 2 Cr) | 🔼 3.58% | Steady growth in housing finance. |
| Real Estate Loan | 🔼 5.96% | Reflects rising demand in property sector. |
| Cash Credit Loan | 🔼 0.56% | Minimal growth |
Loan Types That Decreased
| Product Type | Decline (%) | Reason/Notes |
|---|---|---|
| Overdraft | 🔽 -13.15% | Businesses reducing overdrawn credit exposure. |
| Deprived Sector Loan | 🔽 -7.99% | Indicates possible neglect in inclusive lending. |
Why share loans are rising
Experts say several factors have contributed to the rise in share-backed loans:
- Liquidity is ample in banks and financial institutions.
- Interest rates are falling.
- Other investment sectors have not improved significantly.
- The stock market is low compared to its recent highs.
- NRB removed the Rs. 20 crore loan cap for institutional investors in this year’s monetary policy, encouraging large investors.
However, the Rs. 15 crore limit for individual investors remains unchanged, though many are demanding its removal.
