NRB Data 2025/26: Consumption Loans Hold Above Rs. 1.15 Trillion Despite Tight Policy

Nepal Rastra Bank’s mid-August 2025 monetary data shows that consumer lending has remained resilient despite ongoing tight monetary conditions and higher interest rates. According to the report, total consumption loans stood at Rs. 1.15 trillion, almost unchanged from the previous month, reflecting only a marginal decline of Rs. 516 million (0.05%). This stability suggests that household borrowing appetite in Nepal remains firm — even as credit costs rise — underlining the structural demand for personal, home, and gold-backed loans.

Within the segment, gold and silver loans rose by Rs. 927 million (1.1%), indicating that many individuals continue to leverage precious metals for short-term liquidity needs. Similarly, credit card loans expanded by 7.4%, reaching new highs as digital payment adoption grows. On the other hand, fixed account receipt loans and personal consumption loans recorded slight contractions, reflecting cautious lending behavior by banks amid policy restrictions and credit risk concerns.

Analysts note that this steady level of consumption credit underscores the Nepali banking sector’s deep integration with household consumption. While the overall pace of lending growth has moderated compared to the previous year, sustained demand for home, gold, and education loans demonstrates consumer confidence and urban spending resilience. However, policymakers remain cautious, as prolonged expansion in retail credit could keep liquidity tight and add to inflationary pressures if not balanced with productive sector lending.