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Residential housing loans have shown sluggish growth despite banks and financial institutions (BFIs) prioritizing the sector and offering competitive rates. 

According to the latest data from the Nepal Rastra Bank, housing loans up to Rs 20m extended by commercial banks increased by just 4.07 percent over the past year, reflecting the broader slowdown in credit expansion and the economy.

Total housing loans under Rs 20m increased to Rs 325.36bn in mid-May 2025, up from Rs 312.63bn in mid-May last year. This reflects a low appetite for residential borrowing even though interest rates have dropped to some of the lowest levels yet.

Although banks are offering home loans at premiums of less than one percent above their base rates, credit disbursement has remained below expectations. Bankers say that although housing and real estate loans are a top priority, weak consumer confidence and sectoral distress have hindered credit uptake.

The Nepal Rastra Bank (NRB) has been adopting more flexible policies to boost lending in the real estate sector. The central bank last year reduced the risk weight on housing loans above Rs 5m to 125 percent through a monetary policy review. It allowed homebuyers to use up to 70 percent of their income for loan repayment—principal and interest combined. Before that, only 50 percent of a borrower’s income could be allocated for loan installment payments.

Bankers attribute the slowdown primarily to the ongoing economic downturn, which has dampened individual income and weakened borrowing capacity. “The majority of people can no longer verify stable income sources, making it difficult to qualify for new loans,” one banker said.

Among commercial banks, NIC Asia Bank has the highest exposure to residential housing loans with Rs 48.7bn invested in loans under Rs 20m. Global IME Bank was next with a total housing loan portfolio of Rs 39.94bn. Nepal SBI Bank has the lowest at Rs 2.42bn.

The real estate sector itself is going through a severe downturn, with banks failing to offload their non-banking assets despite publishing auction notices repeatedly. When borrowers default on loans, banks and financial institutions (BFIs) acquire the property pledged as collateral. Banks are supposed to sell off these properties at the earliest and recover their investment, but a slowdown in the real estate sector means banks are not finding buyers. This accumulation of non-banking assets is hitting bank profitability.

Malaysia Airlines continues to redefine the travel experience with its innovative Bonus Side Trip (BST) programme, offering international travellers the opportunity to explore Malaysia’s hidden gems at no extra fare.

Whether transiting through Kuala Lumpur or planning an extended stay, travellers can explore a second Malaysian destination effortlessly, experiencing more of the country’s cultural richness, natural landscapes, and authentic local hospitality.

Available to Malaysia Airlines’ international passengers who travel through Kuala Lumpur, BST offers a domestic return flight to one of seven selected Malaysian destinations at no extra fare. 

Travellers can choose to stop over in Langkawi, Penang, Johor Bahru, Kuantan, Alor Star, Kuala Terrengganu and Kota Bharu before continuing to the last leg of their journey. 

Unlike traditional stopover packages, BST is fully integrated into the ticket fare and booking journey, turning every international journey into a multi-destination Malaysian adventure.

Birgunj Customs Office has collected the highest revenue--Rs 73.18 billion from the import of petroleum products in 11 months of the current fiscal year.

The Office had spent Rs 174 billion to import five types of petroleum products in the 11 months.

Of the total revenue collected from the import of 20 major goods, petroleum products have the share of 46.43 pecent. 

Chief Customs Administrator of the Office, Deepak Lamichhane, said import of petroleum products and vehicles is the main basis of the revenue of Birgunj Customs Office. 

Similarly, a total of 17.70 billion was collected in revenue import of vehicles and their spares which stood at 11.23 percent. 

Likewise, the Office collected Rs 5.78 billion in revenue from iron and things manufactured from iron while Rs 5.26 billion in revenue was collected from import of machinery goods and their parts.

Lamichhane shared that Rs 3.67 billion in revenue was collected from the import of electric machinery and their parts as well as Rs 3.06 billion in revenue was collected from import of all types of clothes during the period.  

The Office collected Rs 2.58 billion in revenue from the import of tobacco and tobacco related products, Rs 2.52 billion from cosmetic products, Rs 2.32 billion from raw material of plastics, and Rs 2.19 billion from other lubricant oil, he mentioned. 

The price of gold has dropped by Rs 1, 500 per tola in the domestic market on Wednesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 192, 000 per tola today. 

Similarly, the price of silver has dropped by 20 and is being traded at Rs 2, 140 per tola today.