Nepalese Banks' Residential Home Loans Reach NPR 481.68 Billion, Up 12.71%
Residential personal home loans extended by Nepalese banks grew by 12.71% to reach NPR 481.68 billion by the end of Bhadra in the current fiscal year. According to the latest data from Nepal Rastra Bank, despite the growth in personal home loans, commercial real estate credit saw a marginal decline of 0.29%. NRB currently caps individual residential home loans at NPR 20 million.
KATHMANDU — Residential personal home loans extended by Nepalese banks and financial institutions have recorded significant growth. According to the latest figures released by Nepal Rastra Bank (NRB), bank investments in personal residential home loans exceeded NPR 481.68 billion by the end of Bhadra in the current fiscal year.
In the corresponding period of the previous fiscal year, such credit stood at NPR 427.36 billion. On a year-on-year basis, residential personal home loan disbursements expanded by 12.71% during the review period. Nepal Rastra Bank has currently fixed the maximum cap for individual residential home loans at NPR 20 million per borrower.
Slight Slowdown in Commercial Real Estate Loans
While personal home loans showed positive momentum, overall real estate credit flow experienced a slight deceleration. According to the data, banks disbursed NPR 270.72 billion in the real estate sector by Bhadra of the current fiscal year.
This represents a 0.29% decline compared to the same period last year, when bank exposure to the real estate sector stood at NPR 271.50 billion.