Home loans floated by BFIs surge by around Rs 29 billion

The real estate market has shown signs of improvement recently, driven by an increase in the number of individuals taking out personal home loans.

According to Nepal Rastra Bank, banks and financial institutions (BFIs) have disbursed a total of Rs 393.60 billion in personal housing loans as of the end of  the Nepali month of Bhadra (mid-August to mid-September) in the current fiscal year. This represents an increase of Rs 28.40 billion compared to the same period last fiscal year when the amount stood at Rs 365.20 billion.

Moreover, by the end of the said month, the total loan disbursement by banks and financial institutions reached Rs 5.223 trillion, which is Rs 316.02 billion higher than the figure recorded in the same period a year earlier.

Commercial banks alone have disbursed Rs 4.618 trillion in loans during the review period this fiscal, marking an increase of Rs 274.37 billion compared to the same period last year.

Development banks have also increased their loan disbursement in the personal housing category, providing Rs 62.40 billion, which is Rs 2.84 billion more than the amount disbursed during the same period last year. As of the end of Bhadra last year, development banks had issued Rs 59.55 billion in personal housing loans.