In case you have taken a mortgage from a financial institution then you definitely must learn this data

Kathmandu. Banks and financial institutions are now barred from revising the interest rate by more than 10 percent on an average. According to NRB, this arrangement has been made so that there is no problem in the banking system due to the decision of a bank.

Under the current arrangement, licensed banks and financial institutions will be able to fix interest rates on deposits by changing the average interest rate and minimum interest rate (excluding yesterday’s deposit) by a maximum of only 10 percent.

If the difference between the maximum and minimum interest rates to be maintained while determining the interest rate exceeds the limit of the provision of sub-point 5, then one of the maximum or minimum rates should be maintained and other rates should be adjusted. For example, if the average interest rate published by all Class A banks last month is 8.5 percent on average, the Class A banks will be able to fix the maximum interest rate only up to 9.35 percent, which will be increased by 10 percent.

This arrangement has been made on the basis of maximum and minimum of average interest rate. According to the NRB, the previous provision was 10 percent. Because of that, it seems that it can go far above the published 10 percent, so it has maintained an average of 10 percent to stop it. The average of the maximum and minimum of the average is taken as the basis.


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