After 30 months, the average single-digit loan interest rate

The loan's weighted average interest rate is now just in the single digits after 30 months.

By the end of December 2018, the weighted average interest rate on loans from commercial banks was 9.44 percent; however, in January, it rose to 10.30 percent.

The loan interest rate has been rising ever since, hitting 13.03 percent in January and February of 2079. For the past fifteen months, it has been declining.

The annual economic and financial condition report for 2080–2081 was made public by Nepal Rastra Bank on Sunday.

The report states that as of the end of June, the weighted average interest rate on loans made by commercial banks was 9.93 percent. June is 2078's lowest month. As of the end of May, the interest rate, which was 10.15 percent, appeared to be declining. Commercial bank loans had a weighted average interest rate of 12.30 percent in June 2080.

The banks are lowering the interest rates on deposits since there is a lack of demand for loans. Banks are required to hold deposits in banks at low interest rates when there is greater liquidity.

There is no need for banks to remove deposits and boost interest rates in this instance. Some of the term deposits matured two years ago at a time when the deposit rate was very high, and the cost of the deposit is still going down.

As of June 2081, the average interest rate on deposits is 5.77 percent, while the average base rate for commercial banks is 8 percent.