Kathmandu. Loans from banks and financial institutions to the private sector have increased by 8 percent. According to Nepal Rastra Bank( NRB), rs 407.62 billion has been disbursed till Mid-May.

In the same period of the previous fiscal year, such loans stood at Rs 246.80 billion. In the same period of the previous fiscal year, credit flow had increased by 5.1 percent. On a year-on-year basis, private sector loans from banks and financial institutions increased by 8.7 percent in mid-May.

As of mid-May, the share of loans disbursed to the private sector from banks and financial institutions to the private sector was 63 percent and the share of loans to the individual and household sectors was 37 percent. In the same period last year, the share was 63.5 percent and 36.5 percent respectively.

Commercial banks account for 8.4 per cent of private sector loans as of May, development banks

Credit flow to finance companies increased by 4.7 per cent and finance companies by 6.9 per cent. As of mid-May, 14.5 per cent of the loans invested by banks and financial institutions were in the protection of current assets (agricultural and non-agricultural goods) and 65.0 per cent in real estate security.

In mid-May, the share of loans disbursed in such collateral was 12.0 percent and 68.5 percent respectively. In the 11 months of the fiscal year 2081÷82, loans to the industrial production sector increased by 8.2 percent, construction sector by 12.9 percent, wholesale and retail trade sector by 5.2 percent, transport, communication and public service sector by 13.5 percent, service industry sector by 8.8 percent and consumer sector by 10.9 percent.

Term loans increased by 5.1 per cent, margin loans by 42.8 per cent, trust receipt (import) loans by 62.2 per cent, higher purchase loans by 5.5 per cent, cash flow loans by 0.6 per cent and real estate loans (including personal residential home loans) by 5.0 per cent. Loans declined by 13.2 per cent.