New bank interest rate: Majority of commercial banks reduces interest rate on loans

KATHMANDU: Commercial banks have announced new interest rates on loans and deposits with effect from July 16, the beginning of new fiscal year. As majority of banks have reduced the base rate, interest rate on loans of many banks has also come down.

Anil Kumar Upadhyaya, vice-president of the Nepal Bankers Association (NBA) and the chief executive officer (CEO) of Agriculture Development Bank (ADB), said that interest rates would continue to fall due to high liquidity in the banking system. According to him, interest rates on deposits and loans have declined by 1 percent and 1.5 percent this year.

At present, banks and financial institutions have collected Rs 470.12 billion in deposits and disbursed Rs 410.56 billion in loans.

Nabil Bank

Nabil Bank has set a minimum interest rate of 1.51% and a maximum of 3.51% on savings. The company has said to give a maximum of 6.51% interest in individual fixed and will give 5.01% interest on individual fixed deposit for three months. Meanwhile, the base rate of the bank is 5.71% till mid-June. The bank has stated that it will provide loan by adding premium up to 7%. The bank has stated that it will provide loans at a minimum interest rate of 8.49% to 11.50% for home loans at fixed interest rates.

Nepal SBI Bank

Nepal SBI Bank has fixed the interest rate on savings at 3.01% and the maximum interest rate of 8% on individual fixed deposit. Meanwhile, the bank’s base rate till mid-June is 7.38%. The bank has stated that the interest rate of the loan will be determined by adding premium from minimum 1.50% to maximum 5%.

Rastriya Banijya Bank

Rastriya Banijya Bank has announced the new interest rate with effect from July 16. The interest rate on individual fixed deposit will be 5.50% to 7.25% and 5% to 6.50% for institutional fixed deposit. The bank has fixed the interest rate based on its base rate as of mid-April (5.50%). The bank has stated that it will provide loan by adding premium from 1% to 3%.

Century Commercial Bank

Century Commercial Bank has set a minimum interest rate of 3% and a maximum of 5% on deposits while The maximum interest on individual fixed deposits has been fixed at 8%. Meanwhile, the base rate of the bank till mid-June is 7.38%. The bank says that loans will be disbursed adding premium up to 6% on it. The interest rate for fixed-term loan has been set at 11.49% to 12.99%.

NMB Bank 

NMB Bank has set a minimum savings rate of 2.5% and a maximum of 4.50%. The maximum interest rate for individual fixed deposit has been set 7.50% and the minimum at 6.50%.  The base rate of the bank till mid-April is 7.19%. The bank says that it will provide loan by adding premium up to a maximum of 5%.

NIC Asia Bank

The bank has fixed the interest rate on savings at 2.56%. According to the new interest rate announced by the bank, the interest on fixed deposits will be up to 7.56%. The base rate of the bank till mid-June is 6.74%. The bank has stated that it will give loan by adding premium up to 6%.

Himalayan Bank 

Himalayan Bank has set a minimum savings rate of 2% and a maximum of 4%. The minimum interest rate for individual fixed deposit has been set at 5% and the maximum interest rate at 7%. The bank’s base rate as of mid-April is 6.75% and will provide loan by adding premium up to a maximum of 5%.

Agriculture Development Bank

The Agriculture Development Bank has set a minimum interest rate of 3.50% and a maximum interest rate of 5% o n savings. The maximum interest on individual fixed deposit has been set at 7.5%. As of mid-April, the bank’s base rate is 7.48% and will provide loans with an additional premium of 2% to 5%.

Prabhu Bank 

Prabhu Bank has fixed minimum 2% to maximum 4% interest rate on savings. The interest rate on individual fixed deposits has been set from minimum of 6.50% to a maximum of 7% . The base rate of the bank till mid-June is 7.06% and will give loan by adding premium up to 5%.

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