Base Rate of Nepali Banks Who Offers the Lowest Lending Rate?

Using Nepal Rastra Bank’s mid-July 2025 (Asadh 2082) commercial banks’ data, we can closely analyze the Base Rates — the minimum lending rates that banks can charge borrowers. This metric is a critical indicator of banking sector competitiveness and the cost of credit for businesses and households.

Across the 20 commercial banks, the average base rate stands at 5.99%, reflecting a steady downward adjustment compared to previous fiscal years when base rates were above 8–9%. The decline is mainly driven by easing liquidity pressures, NRB’s accommodative monetary stance, and banks’ efforts to attract borrowers in a recovering economy.

Looking at individual banks, Standard Chartered Bank Nepal reported the lowest base rate of 4.96%, which is consistent with its global reputation for efficiency and strong liquidity buffers. This makes it highly attractive for corporate borrowers, multinational clients, and high-value businesses. Among domestic players, Nabil Bank (5.71%), Global IME Bank (5.58%), and Nepal Bank Limited (5.58%) also maintain relatively low lending benchmarks, signaling competitive pricing strategies.

On the other hand, several banks are still operating with higher base rates above the average. NIC Asia Bank (7.04%), Prabhu Bank (6.67%), and Kumari Bank (6.44%) are at the upper range, reflecting their higher cost of funds and aggressive lending models. Similarly, Laxmi Sunrise Bank (6.49%) and Prime Commercial Bank (6.49%) also fall in the high-base-rate category. Borrowers dealing with these banks are likely to face comparatively higher interest costs.

The trend reveals two important insights. First, foreign-owned or multinational banks like Standard Chartered continue to lead in offering the lowest lending costs, leveraging global best practices. Second, large domestic banks such as Nabil and Global IME are successfully competing with relatively lower base rates, creating more options for borrowers. Meanwhile, banks with higher base rates may find it difficult to expand lending without offering other value-added services.