Banks and financial institutions (BFIs) in Nepal issued loans worth Rs 35.42 billion against shares as collateral during the first ten months of the current fiscal year 2024/25. According to data from Nepal Rastra Bank (NRB), this represents a 39.2 percent growth in margin lending compared to the start of the fiscal year.
By mid-May 2025, total outstanding margin loans had reached Rs 125.52 billion, up from Rs 90.93 billion recorded in mid-July 2024. The most significant rise was observed in high-value loans of Rs 10 million and above, which surged by 53.3 percent to Rs 85.73 billion, compared to Rs 55.93 billion at the beginning of the fiscal year.
Similarly, loans between Rs 5 million and Rs 10 million increased by 21.1 percent, reaching Rs 15.05 billion. Loans in the range of Rs 2.5 million to Rs 5 million grew by 15.3 percent to Rs 16.62 billion during the same period.
The rapid growth in margin lending reflects increased investor activity and confidence in the stock market, but also raises concerns over market volatility and risk exposure among borrowers and lenders.
