Kathmandu. As the economy slows down, the demand for credit from various sectors has also decreased. Loans from banks and financial sector have not picked up pace after youths joined the agitation along with political instability and frustration in the private sector.
On the other hand, banks are struggling to recover old loans. As a result, non-banking assets are piling up in the overall banking sector.
The direct impact of the slowdown in the economy has also been seen in the automobile sector. The demand for loans from this sector has not increased much.
Nepal Rastra Bank (NRB) has released the current fiscal year 2082. This is according to the data for the first five months of ’83. Till mid-August of the current fiscal year, banks have disbursed Rs 136.58 billion in vehicle loans. Last fiscal year 2081. In the same period of 2018, banks had extended vehicle loans worth Rs 128.63 billion. Compared to the previous year, car loans have increased by 6.18 percent. Which is not very encouraging.
As of mid-December of the current fiscal year, banks have disbursed Rs 92.14 billion for commercial purposes and Rs 44.43 billion for personal loans. In the same period last year, banks had disbursed Rs 86.96 billion for commercial purposes and Rs 416.7 million for personal loans.
In the review period, the vehicle loan for commercial purpose increased by 5.96 percent and personal loan by 6.63 percent compared to the previous year.
