Service Industries Credit Crosses Rs. 480 Billion Amid Tourism and Health Sector Growth

According to the Nepal Rastra Bank’s Sectorwise Outstanding Credit Report for Mid-August 2025, loans to the service industries have exceeded Rs. 480 billion, reflecting continued recovery in tourism, healthcare, and related sectors. The data shows that total service sector credit stood at Rs. 481.1 billion, slightly lower than July’s Rs. 488.5 billion but up 10.5% compared to last year, signaling resilience in post-pandemic service expansion. Within the category, key growth drivers were tourism, health services, and automotive services, while hotels and education institutions experienced mild contractions.

Tourism-related lending rose by 3.3% to reach Rs. 29.6 billion, supported by renewed domestic travel, trekking, and hospitality activities. Likewise, health sector loans increased by 3.3% to Rs. 74.1 billion, reflecting the ongoing expansion of private hospitals, clinics, and diagnostic centers across Nepal. Automotive services also saw a notable 13% jump in credit, driven by post-Dashain demand and vehicle service expansion. However, hotel financing declined by 3.9%, suggesting slower repayment cycles and reduced new investments in luxury accommodation, possibly due to lower occupancy rates outside peak tourist months. Similarly, education services saw a 4.8% drop in credit exposure, pointing to subdued private investment in schools and colleges amid slow enrollment recovery.

Despite these mixed sub-sectoral movements, the overall service industry remains one of Nepal’s most dynamic growth engines in 2025. Expanding credit in health, tourism, and automotive services underscores a structural transformation in Nepal’s tertiary economy — moving toward consumption-driven and experience-based services. Analysts suggest that if this credit momentum continues, the service sector could soon overtake traditional industrial lending in terms of annual growth rate, further diversifying the nation’s economic foundation.