Share-Backed Loans Surge by 39% in 10 Months, Driven by Large Borrowers

In just 10 months, margin loans against shares have surged significantly in Nepal, rising by 39.3 percent. According to the latest data from Nepal Rastra Bank, the total share mortgage loan reached Rs. 125.52 billion by the end of Baisakh. While the growth of other types of loans has slowed, loans against shares have shown a notable spike.

Large borrowers dominate this growth. Share loans exceeding Rs. 10 million (1 crore) increased by a massive 53.3 percent, reaching Rs. 85.73 billion. Loans in the range of Rs. 5 to 10 million grew by 21.1 percent, amounting to Rs. 15.05 billion by the end of Baisakh. Similarly, share-backed loans between Rs. 2.5 to 5 million stood at Rs. 16.62 billion, reflecting a 15.3 percent increase.

This rapid rise in margin lending indicates increasing reliance on share collateral, particularly by large-scale investors.