Share Margin Loans form 1.8% of the total loans till Chaitra end; Total marginal loan amount stood at Rs 42.30 arba

As per the recent third quarter review of the monetary policy of the current fiscal year, it has been evident that the Banks and Financial Institutions have provided less than 2% as share margin loan.

Till the end of Chaitra 2074, the total share margin loans form 1.8% of the total loans floated.

The central bank has been strict towards the share margin loans along with the banks charging a high interest rate which has kept the investors away from such type of loan. As of Chaitra end, Rs 42.30 arba has been floated as share margin loan whereas it was Rs 40.50 arba as of Ashadh end.

Similarly, Overdraft takes up large share of total loans floated i.e. 17.7 percent which is followed by Home Loans 14.4% and Hire Purchase loans of 7.1%.

Rs 4.9 kharba was floated as Overdraft loan till Chaitra end. Likewise, Home loans stood at Rs 3.32 kharba and Hire purchase at Rs 1.64 kharba.

Due to these evident situations, the margin lending facility has been introduced in Nepal. It is expected to help the investors and increase the share margin loans as well.