Kathmandu. In the month of Chaitra, the maximum interest rate set for share collateral loans by most banks is in single digits. Investors are attracted to share collateral loans as both the minimum and maximum interest rates are in single digits.
The large amount of investable money in the banking sector has made it easier for stock market investors. It is seen that the number of people taking share collateral loans from banks at cheap interest rates and investing in the stock market is increasing.
Many banks are providing loans to invest in the stock market by adding a premium of about 2 percent to the bank’s base rate. Recently, the base rate of banks has been decreasing. Due to which it is becoming easier for interest rates to decrease. This is having an impact on the interest rate on loans.
According to Pal Rastra Bank, margin loans have increased by 27.8 percent to Rs 115.11 billion by mid-Magh of the current fiscal year. By mid-Ashar last year, such loans had expanded to only Rs 85.17 billion.
The private sector is not able to increase the demand for loans due to the inability to overcome the economic slowdown. Loans in real estate and other sectors have also not been able to increase at the expected pace. However, due to flexible policies, an investment environment is also being created in the stock market.
Market experts say that the number of people taking loans in the stock market is also increasing. Although the situation is now comfortable, many investors have not entered the stock market due to the time of the governor’s appointment and the pressure of mid-Chait. They say that the number of people taking loans to invest in the stock market will increase further in the coming months.
Rastyra Banijya Bank is providing share collateral loans to investors at the cheapest interest rate as per the interest rate of Chait. This bank has set the minimum interest rate for share collateral loans at 6.28 percent and the maximum at 7.28 percent. Similarly, Everest Bank is providing share loans at an interest rate ranging from a minimum of 6.46 percent to a maximum of 8.46 percent.
Investors can avail margin-type share collateral loans at an interest rate of 6.52 percent and a maximum of 8.52 percent.
Similarly, Global IME Bank is providing share collateral loans at an interest rate of 6.56 percent and a maximum of 9.06 percent, while Siddhartha Bank is providing share loans at an interest rate of 6.69 percent to 9.94 percent, and Citizens Bank is providing share loans at an interest rate of 6.95 to 10.45 percent.
10 banks, including Prime Commercial Bank, have a minimum interest rate of 7 percent for share loans. to less than 8 percent.
Among which, Prime offers share loans ranging from 7 percent to 12 percent, while Nabil Bank has set interest rates ranging from 7.05 percent to 9.05 percent for loans below Rs. 5 million. Nabil Bank has set a minimum interest rate of 7.05 percent to a maximum of 8.80 percent for loans above Rs 50 lakh.
Similarly, Machhapuchhre Bank is offering share loans at 7.18 to 9.18 percent, Himalayan Bank at 7.38 to 9.38 percent, Nepal Bank at 7.46 to 9.46 percent, NMB Bank at 7.59 to 9.59 percent, Sanima Bank at 7.60 to 9.60 percent, Nepal Investment Mega Bank at 7.75 to 9.75 percent and Nepal SBI Bank at 7.85 to 9.85 percent.
In Chaitra, NIC Asia Bank is offering share loans of prime nature at 7.41 to 9.41 percent and share loans of standard nature at a minimum of It is offering interest rates ranging from 8.41 percent to a maximum of 10.41 percent. Similarly, Kumari Bank is offering share loans at interest rates ranging from a minimum of 9.24 percent to a maximum of 10.9 percent, Himalayan Bank is offering share loans at interest rates ranging from 9.38 to 10.88 percent, and Prabhu Bank is offering share loans at interest rates ranging from 9.43 to 11.43 percent.
