Kathmandu. It is seen that the demand for real estate loans in banks and financial institutions has not increased much. Recently, the demand for residential home loans has also started to slow down.
This is seen from the data released by Nepal Rastra Bank for the first seven months of the current fiscal year up to Magh. Although the economic indicators remain positive, the demand for loans for real estate has not increased.
According to the data, the real estate loans disbursed by banks have increased by only 3.3 percent up to Magh compared to last Ashar. Real estate loans disbursed from banks up to Magh of the current fiscal year have amounted to Rs 276 billion 863.5 million. As of last Ashar, banks had disbursed real estate loans worth Rs 268.128.9 billion.
The demand for residential personal home loans in banks and financial institutions has also increased moderately. According to the data, up to the first seven months of the current fiscal year, banks and financial institutions have disbursed residential personal home loans worth Rs 399.302.9 billion. As of last Ashar, such loans amounted to Rs 387.161 billion. Compared to last Ashar, such loans have increased by only 3.2 percent till Magh.
The National Bank has made arrangements for customers to take residential personal home loans of up to Rs 20 million from banks and financial institutions.
The flow of credit has not been able to pick up speed due to the failure of real estate transactions to improve and industrialists and businessmen are not very enthusiastic about taking loans.
On the other hand, banks are struggling to manage increasing bad loans and as such loans increase, non-banking banks are also increasing, so banks are under pressure. Experts say that this is why loans for real estate have not picked up speed.
