Education and Health Service Loans Rise as Consumer Loans Stabilize in 2025/26

According to the latest monetary data from Nepal Rastra Bank (NRB) for mid-August 2025 (fiscal year 2025/26), education and health service loans have shown steady growth, signaling increased household investment in essential service sectors. Meanwhile, consumer loans have stabilized, indicating a moderation in personal credit demand following the rapid expansion seen in previous fiscal years.

The data reveals that education sector loans, which had slightly declined earlier, have rebounded as private schools, colleges, and training institutions seek financing for infrastructure and digital upgrades. Similarly, health service loans rose by Rs. 2.37 billion (up 3.3%), driven by expansion of private hospitals, diagnostic centers, and clinics — particularly in urban centers like Kathmandu, Pokhara, and Biratnagar. This uptick reflects Nepal’s continued post-pandemic investment in health infrastructure and the growing middle-class demand for quality healthcare.

In contrast, consumer loans, including personal, hire-purchase, and home loans below Rs. 20 million, have remained stable at around Rs. 1.15 trillion, marking only a marginal change of 0%. While gold- and credit card–based loans rose slightly (1–7%), fixed account and hire-purchase loans declined, suggesting that consumers are becoming more cautious about high-interest borrowing.

Overall, the NRB data indicates a gradual shift in credit allocation — away from consumption and toward productive and essential service sectors like health and education. This trend, analysts note, aligns with Nepal’s goal of building a more resilient, knowledge-driven economy, as households and institutions prioritize long-term capacity development over short-term spending.