KATHMANDU, Nov 3: Despite Nepal Rastra Bank (NRB)’s effort to curb interest rates on loans, the base rates of commercial banks have soared as high as 9.81 percent, which has made borrowing expensive.
According to the financial reports unveiled by the commercial banks, most of the banks have raised the base rate as of mid-October. Mega Bank has fixed the highest base rate at 9.81 percent, up from 6.48 percent in mid-July.
Banks charge interest rates on lending by adding premiums to their base rates. Based on the new base rates, the interest rates on loans are likely to go into double digits, although the central bank a few weeks ago directed the banks to maintain their interest rate at single digit.
The base interest rate of Standard Chartered Bank Nepal stands at 5.18 percent, the lowest of all. Similarly, Rastriya Banijya Bank has also maintained its base rate at 5.41 percent.