Kathmandu. In recent months, there has been a slight increase in the construction of personal housing. As a result, the number of loans going to this sector is also increasing. The personal housing loan disbursed by banks and financial institutions has increased by Rs 24.63 billion till Mid-June of the fiscal year 2081/82 BS. This growth is significant compared to the previous fiscal year 2080/81. Bankers said this indicates high demand for investment in the housing and construction sectors.
According to nrb data, 54 banks and finance companies, including commercial banks, development banks and finance companies, have disbursed loans worth Rs 410.45 billion for the construction of individual houses. In the same period of the previous year, this amount was only Rs 385.41 billion.
According to experts, home loans have increased due to the decrease in interest rates in recent times. According to them, the construction of personal housing has been encouraged even after the high rate of remittance. Experts say that the attraction of taking such loans has increased due to the slow real estate coming back on track and housing projects are expanding rapidly.
Commercial banks have disbursed rs 326.72 billion in personal home loans till Mid-May, an increase of Rs 11.62 billion over the previous year. During this period, development banks have disbursed loans worth Rs 68.67 billion. Compared to the previous year, the loan flow has increased by Rs 11.06 billion. Similarly, the finance company has extended a loan of Rs 14.64 billion towards personal housing.
This is an increase of Rs 1.94 billion over the previous year.
Personal housing loans will increase employment and economic activity in the construction and real estate sectors and bring the economy back on track. The monetary policy of the current fiscal year has also adopted ease in increasing the loan towards real estate. Experts say that this will help the overall economy.
In recent times, banks and financial institutions have been attracting customers by making public various offers and schemes and schemes on the loans provided for the construction of houses. At a time when land prices are stable, the credit in this sector has increased slightly.
Apart from housing loans, the total credit in the banking sector has expanded so far. In the 11 months of the last fiscal year, the total loan has reached Rs 5,554.64 billion, which is an increase of Rs 426.23 billion compared to the previous year. Commercial banks have the largest share, while development banks and finance share the second and third positions respectively.
According to experts, banks and financial institutions have maintained low interest rates with sufficient liquidity and there is also a good situation in the sovereign credit assessment. Bankers also see some ease in credit expansion this year as the monetary policy for the current fiscal year has been flexible. However, they believe that due to the increase in non-banking assets and the capital fund is under pressure, the flow of loans cannot be encouraged.
