Loan Interest Rate
A dual-part formula mandated by NRB primarily determines the Loan Interest Rate in Nepali banks. The Credit Interest rate in Nepal gives you a clear idea for setting up your financial goal offered by each BFIs. Loan products in Nepal vary based on the banks and their credit strategy. Every BFI named the nature of the Loan based on their productivity and marketing strategy. We can find Home loan, Auto Loan, Personal loan, Mortgage Loan, Term Loan, and Education Loan in practice. So, here’s the key menu to find your required loan products to explore their interest rates offered by every bank and Financial institution.
How Loan Interest Rate Calculated?
Loan interest rates in Nepali banks are primarily determined by a transparent dual-part formula regulated by the Central Bank of Nepal. NRB has set a certain guideline for setting and leading the loan to the customers. We can find the basic formula in practice, which is based on the bank’s internal cost of funds, by adding a risk and profit margin (premium).
Loan Interest Rate = Base Rate + Premium