Home loan interest rates in Nepal have fallen to as low as 7% as banks struggle to use excess liquidity amid a slowdown in the real estate market. With weak property transactions and over Rs 1.1 trillion in unused funds, banks are offering more affordable and flexible home loan schemes. Nepal Rastra Bank has also relaxed the restrictions by giving more loan limits and a higher loan to value ratio, as well as loan restructuring, to stimulate the housing industry. This has led to an increase in home loan lending, more land trading in the Kathmandu Valley, and an increase in government revenues from land transactions as well.
Home Loan Interest Rates Fall to as Low as 7% Amid Excess Liquidity in Banks
