Boom in consumer finance in
recent years has led to a
radical change in urban
living patterns, triggering
a rapid growth in the
purchasing power of the
middle-class. It has also
given banks a new niche for
investment. Rapid
urbanisation is what most
commercial banks are cashing
in on with products that
help meet the need of
people. Recognising the
value of offering a wide
range of services not only
to the corporate sector but
also to individuals, banks
have been aggressively
offering various consumer
loans as required by
individuals, helping people realise their dreams.
Home
loan has become an important
area in which bankers are
happy loosen their purse
strings. In the last couple
of years, the market for
consumer loans has become so
competitive that an
individual with a regular
source of income can pay
easy Equated monthly
installments (EMI) and own a
house. These loans ensure
that you are not burdened to
pay a huge amount at once.
The payment is spread over a
maximum duration of 20 years
or according to a mutual
understanding between a
consumer and the bank. From
a tiny household gadget to a
dream home, a consumer can
get loans and go on paying
easy EMIs. Between most
commercial banks and
financial institutions,
there is a cutthroat
competition for market
share, which is ultimately
benefiting customers. The
competition has resulted in
cutting down interest rates
as well as introducing other
features associated with
home loans. As a result,
banks are also providing
loan for house decorations.
Though interest rates vary
from bank to bank, from
seven per cent to ten per
cent depending upon the
tenure, the purpose of home
loans is common - the
purchase of a house or
apartment, construction,
renovation extension or even
decoration. Till some time
back, only private sector
banks and financial
institutions were trying to
cash in on the new trend.
But entry of the two largest
public sector commercial
banks -
Nepal Bank
Ltd (NRB)
and
Rastriya Banijya
Bank
(RBB),
in the consumer financing
sector, has added more
competition in this segment.
More
about investing in real
estate
Other investment news and
articles:
Nepal
Banks hit by capital flight
(25-9-2007)
initial public offering
Siddhartha Insurance
sold out (14-9-2007)
Transactions at the
stock market increased
by 142 percent
(28-7-2007)
Creating environment for
foreign investment
(19-4-2007)
improving investment
environment (20-2-2007)
Loans for purchasing
shares on stock market
(17-2-2007)
Narayani Industrial
Development Bank listed
on the Nepal Stock
Exchange
(6-2-2007)
Nepal Stock Exchange
suspends trading of
Nepal Credit and
Commerce Bank
(30-1-2007)
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