Nepal Investment Bank reports a slight base rate decline; Bank updates interest rates profile for loan schemes
Fri, Oct 2, 2020 10:21 AM on Latest, Interest Rates,
Nepal Investment Bank Limited (NIB) has updated its interest rates profile for loans and advances. The update will be effective from today, i.e. 16th Ashwin.
The base rate has declined slightly from 7.49% to 7.33%. Thus, the interest rates of various instruments that are added on the base rate have declined too.
Loan against shares was previously provided at 2% to 5% higher than the base rate of 7.49%. Now, loans against shares will be provided at 1.5% to 5% higher than the base rate of 7.33%.
Housing loan was previously issued at 1.5% to 5% than the base rate and loan against pledge of gold/silver at 3% to 5% higher than the base rate. The percentage added to the base rate is the same for these schemes this time. However, since the base rate is low itself, the interest rates for these schemes have fallen in equal proportion to the base rate decline.
Nepal Investment Bank will probably update its interest rates for deposit products soon. Until then, the existing interest rates will be maintained. This means that savings will get interest payment from 3% to 5% p.a. For individuals, fixed deposits generate 7.75% for deposits maturing in a year and 8.25% for deposits maturing in a longer timeframe. Institutions will get an interest of 7% from fixed deposits.
