Himalayan News Service

Kathmandu, May 3:

Nepal Industrial and Commercial Bank Ltd has launched ‘NIC Ghar Subidha’, a personal house loan product.

NIC Ghar Subidha offers the lowest interest rate in Nepal, said Sashin Joshi, chief executive officer, NIC Bank at a press meet, today.

Under the scheme, NIC Bank will provide loans for various purposes like re-financing of existing loans with other financial institutions, equity finance of land or house, purchase of new house or apartments, renovation or extension of house, purchase of land and construction of new houses.

The loan will be available at an interest rate of 6.99 per cent per annum for re-finance of existing loans and 7.49 per cent for new loans.

According to the scheme, 6.99 per cent interest rate will be charged for the first year only under refinance of the existing loans, whereas it will be 7.99 per cent up to five years and 8.99 per cent up to 10 years. The interest rate for the loans up to 15 years has been set at 9.99 per cent. For new loans, 7.49 per cent of interest rate will be applicable up to five years, while the rate will be 7.99 per cent up to 10 years, 8.99 per cent up to 15 years and 9.99 per cent up to 20 years.

Financing up to 110 per cent is yet another unique feature bundled with this scheme to construct a new house for people who already own land, said Bhanu Babadi, manager-credit, consumer banking at NIC. “The bank will finance up to 100 per cent of the cost of construction and an additional 10 per cent for furnishing, decoration and purchase of household equipment,” he added.

The scheme enables customers with regular income to make their own home by paying monthly instalment almost equal to the house-rent, said Joshi.