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With an abundance of investable capital in the banking system and loan interest rates dropping to single digits, investors’ interest in margin-based loans, where shares are used as collateral, has surged. While entrepreneurs in other sectors remain hesitant to take loans, capital market investors are actively borrowing for transactions, as recent data reveals.

According to Nepal Rastra Bank, margin-based loans against shares increased by 32.78 percent by the end of the current fiscal year (2024/25) compared to the same period last year. As of the first four months of the current fiscal year, the flow of such loans reached Rs 107.76bn, up from Rs 81.16bn in the same period last year.

Despite having an estimated Rs 500bn to Rs 700bn in the banking system, the central bank has expressed concerns about monetary management. Bankers report limited demand for new loans. Ganeshraj Pokharel, CEO of Citizens International Bank, attributes this to reduced confidence among entrepreneurs. “Although we are allowed to lend up to 90 percent of the credit-deposit (CD) ratio, we are currently at 83 percent. Even with seven percent additional lending capacity, loans are not being issued. Many entrepreneurs seem to be in a ‘wait and watch’ mode,” he said.

Pokharel noted that sluggish real estate transactions and minimal economic activity have contributed to the lower demand for loans. However, he expressed optimism about gradual improvements, emphasizing the need for more lending to stimulate economic growth.

Meanwhile, margin-based loans from the 20 commercial banks, which hold over 90 percent of the market share, have increased by 35.08 percent this fiscal year. These banks disbursed Rs 8.59bn in margin loans, up from Rs 6.36bn during the same period last year. Similarly, the 18 development banks operating in the country recorded a 25.07 percent rise in margin loans, with lending growing to Rs 1.76bn from Rs 1.4bn last year. Additionally, 18 finance companies saw a 22.02 percent annual growth, disbursing Rs 4.23bn in the first four months of this fiscal year compared to Rs 3.47bn in the previous year.

The central bank’s 2022 amendment to its integrated directive raised the limit on margin loans against shares. Individuals can now borrow up to Rs 150m, while institutional investors can borrow up to Rs 200m. Previously, there was no cap for institutional investors.

Earlier, the central bank had imposed limits on margin loans, categorizing the capital market as an unproductive sector. However, following criticism from investors, the limits were relaxed, allowing borrowers to access up to Rs 120m from multiple licensed institutions.

Shree Thangpal Valley Secondary School, located in Panch Pokhari Thangpal Rural Municipality, Sindhupalchowk, uses vegetables grown in its own garden for lunch.

The vegetables, cultivated in a tunnel by members of the school’s eco and health clubs, are incorporated into the school’s midday meals, according to Principal Raju Tamang. “The vegetables we use in lunch are produced here. This initiative allows students to generate income while also benefiting from fresh, nutritious produce,” said Tamang. “Aligning with state policy to link knowledge with skills and labor, we aim to foster self-reliance among students by creating opportunities for income generation.”

Principal Tamang explained that the school vegetable garden program was launched to achieve several goals: providing organic lunches, enhancing the greenery of the school premises, and utilizing resources that would otherwise go to waste. By consuming vegetables grown on-site, students enjoy healthy and sufficient lunches at a lower cost while gaining practical knowledge about vegetable farming.

School Management Committee Chairman Sundar Sapkota highlighted the program's effectiveness. He shared that the initiative helps eliminate junk food in the school and provides students with skill-based education. “We plan to transform the school into a model institution and eventually a technical school by offering practical and experimental education. This will involve requesting support from the rural municipality as well as state and federal governments,” said Sapkota.

The program receives additional support from KOICA’s ERCN project, which provides training on nursery management, seasonal vegetable production, and fertilizer preparation. KOICA field coordinator Kumar Bhattarai noted that the vegetable garden initiative equips students with valuable knowledge and skills. The organization has observed that students often apply these skills at home, increasing their families’ income.

The school has also used the proceeds from vegetable sales to fund public awareness programs and activities organized by the children’s club. Sapkota himself contributes to the initiative by planting and watering vegetables during vacations and holidays.

The garden serves as a practical learning space for students in grades 6, 7, and 8, who plant crops such as cabbage, cauliflower, coriander, spinach, and chili. These vegetables are purchased by the school and used to prepare midday meals, reinforcing the program’s objectives of sustainability, education, and self-reliance.

The price of gold has dropped by Rs 1, 200 per tola in the domestic market on Friday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 153, 000 per tola today.

Similarly, the price of silver has dropped by Rs 65 and is being traded at Rs 1,860 per tola today.

The Nepal Stock Exchange (NEPSE) plunged by 33. 42 points to close at 2,682.29 points on Thursday.

Similarly, the sensitive index dropped by 6. 44 points to close at 458. 22 points.

A total of 12,371,318-unit shares of 304 companies were traded for Rs 6. 14 billion.

Meanwhile, Trishuli Jal Vidhyut Company Limited was the top gainer today with its price surging by 8. 55 percent. Likewise, Janaki Finance Company Limited (JFL) was the top loser as its price fell by 9. 99 percent.

At the end of the day, the total market capitalization stood at Rs 4. 44 trillion.