Starting from 1st chaitra, 2079, a majority of banks and financial institutions in Nepal have decreased the interest rates given to depositors, causing a decline in the interest rates for savings, term deposits, and loans provided by commerce, development banks, and finance companies.
The Commercial Bank's interest rate on savings has been decreased by 0.4 percentage points, which means depositors will now receive a minimum interest rate of 6 percent and a maximum of 8 percent on ordinary savings, compared to the previous rate of 6.42 to 8.42 percent. However, interest rates on fixed deposits have not decreased, and currently, commercial banks offer an interest rate of up to 11 percent on fixed deposits.
Moreover, the interest rate on loans has also decreased, particularly after the Nepal Bankers Association's decision to cap the maximum loan premium rate to 5 percent, which has come into effect from Wednesday. Earlier, banks could charge a premium of up to 6 percent on the base rate while giving loans.
Similarly, the Development Bankers Association has reduced the interest rate on term deposits by 0.25 percentage points for March, and the interest rate on fixed deposits has been fixed according to the time period. The interest rate of individual term deposits of one year or more is a maximum of 11.60 percent, while that of personal term deposits of less than one year remains at 11.50 percent.
In the case of finance companies, the interest rate for deposits over three months has been reduced by 0.15 percent, and the interest rate for one-year term deposits has been reduced to 11.90 percent from the previous rate of 12.10 percent. Finance companies will now offer an interest rate of 6.60 percent to 8.60 percent on ordinary savings.
Overall, these reductions in interest rates are expected to provide some relief to borrowers and help stimulate economic activity in Nepal.
