Lumbini Bikas Bank Revises Deposit and Lending Interest Rates

14th June 2026, Kathmandu

Lumbini Bikas Bank Limited has officially published its revised deposit and lending interest rates schedule.

Lumbini Bank Interest Rates

The newly updated financial structures are set to take effect from June 15 2026, which corresponds to the 1st day of Ashad 2083 in the local calendar. By deploying this revised pricing model, the bank aims to balance its portfolio yields, offer attractive options for remittance inflows, and establish competitive lending benchmarks for local businesses and industrial borrowers.

Analyzing the New Fixed Deposit Structures for Individual Institutional and Remittance Savers

The updated interest rate matrix sets up distinct yield tiers based on deposit ownership types and the long-term commitment of the funds.

The bank continues to offer a premium return on funds coming from legitimate foreign remittance channels to support national foreign exchange reserves.

The updated local currency fixed deposit yield categories and tenure benchmarks include:

• Individual Fixed Savings Track: Savers committing funds for individual accounts up to 1 year will receive 3.01% per annum, while tenures above 1 to 3 years yield 3.10%. Placements stretching above 3 years to 5 years earn 3.60%, and long term individual commitments extending above 5 years reach the top standard tier at 4.70%.
• Remittance Backed Fixed Portfolios: Specialized inbound investment channels via the Remittance Fixed Deposit program receive a premium return, offering 4.01% per annum for tenures up to 1 year.
• Institutional Capital Placements: Corporate and institutional fixed deposits are standardized by the treasury, maintaining an interest rate of 2.75% per annum for terms spanning above 1 year to 2 years, and rising to 3.00% per annum for long term institutional placements exceeding 2 years.

The bank treasury department clarifies that a uniform minimum balance entry barrier of 10000 NPR is mandatory across all listed individual, institutional, and remittance fixed deposit categories. Deposions can select between quarterly interest distribution intervals or an alternative at-maturity posting layout.

Reviewing Savings Account Variations Special Accounts and Call Tiers

The updated retail savings model applies a baseline yield across the majority of consumer savings products while providing higher returns for specialized professional and premium saver lines.

The complete updated schedule of consumer savings accounts features the following annualized yields and minimum balance parameters:

• Normal Saving: 2.75% (Minimum Balance: 100 NPR)
• Check In Saving: 2.75% (Minimum Balance: NIL)
• Premium Saving: 2.75% (Minimum Balance: 5,000 NPR)
• Nari Bachat Khata: 2.75% (Minimum Balance: 100 NPR)
• Bal Surakshya Bachat: 2.75% (Minimum Balance: 100 NPR)
• Senior Citizen Saving: 2.75% (Minimum Balance: 1,000 NPR)
• Shareholder s Saving: 2.75% (Minimum Balance: 100 NPR)
• Welcome Account: 2.75% (Minimum Balance: 100 NPR)
• Locker Deposit: 2.75% (Minimum Balance: NIL)
• Provident Fund Other: 2.75% (Minimum Balance: 100 NPR)
• Sadharan Bachat: 2.75% (Minimum Balance: NIL)
• Bal Bhawishya Yojana: 2.75% (Minimum Balance: 100 NPR)
• Sahayatra Bachat Khata: 3.00% (Minimum Balance: 10,000 NPR)
• Lumbini Talab Khata: 2.75% (Minimum Balance: NIL)
• Samajik Surakshya Bachat: 2.75% (Minimum Balance: NIL)
• Remittance Bachat Khata: 4.00% (Minimum Balance: NIL)
• FCY Deposit USD GBP Euro: 1.00% (Minimum Balance: 50 USD GBP Euro)
• Call Account: Up to 1.37% (Minimum Balance: No minimum balance listed)
• Recurring Deposit: 2.75% (Minimum Balance: 1,000 / 3,000 / 5,000 NPR with tenures of 3, 4, or 5 years)
• Akshyaya Kosh Khata: Negotiable (Minimum Balance: 10,000 NPR)

The domestic savings lineup includes a dedicated quarterly interest posting frequency on the Sahayatra Bachat Khata line. For structural asset preservation, the Akshyaya Kosh Khata endowment framework offers negotiable interest terms subject to direct agreement with bank management.

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Evaluating Commercial Lending Premiums and Base Rate Additions

On the credit side of the balance sheet, floating rate commercial and retail loans are priced using custom premium additions over the primary three month moving average base rate of the bank, which stands at 5.74% as of Baishakh End 2083.

The primary credit risk parameters and floating loan premium ranges over the base rate include:

• Agro Plus Loan TL OD DL: Base Rate + Premium Up to 4.00%
• Auto Loan (Up to 3 Years): Base Rate + Premium Up to 4.00%
• Auto Loan (Above 3 Years upto 5 Years): Base Rate + Premium Up to 4.00%
• Auto Loan (Above 5 Years): Base Rate + Premium Up to 4.00%
• Hire Purchase Loan (Up to 3 Years): Base Rate + Premium 1.50% to 4.00%
• Hire Purchase Loan (Above 3 Years upto 5 Years): Base Rate + Premium 1.50% to 4.00%
• Hire Purchase Loan (Above 5 Years): Base Rate + Premium 1.50% to 4.00%
• Business Plus Loan OD DL TL: Base Rate + Premium Up to 4.00%
• Comfort Loan: Base Rate + Premium Up to 4.00%
• Education Loan: Base Rate + Premium Up to 4.00%
• Foreign Employment Loan: Base Rate + Premium 0.00% to 4.00%
• Personal Loan OD TL: Base Rate + Premium 1.00% to 4.00%
• Real Estate Loan OD DL TL: Base Rate + Premium 1.50% to 4.00%
• Home Loan: Base Rate + Premium Up to 4.00%
• Margin Lending Loan: Base Rate + Premium Up to 4.00%
• Swarna Karja Gold Loan OD TL: Base Rate + Premium Up to 4.00%
• Two Wheeler Loan: Base Rate + Premium Up to 4.00%
• LBBL Green Loan: Base Rate + Premium Up to 2.00%
• Deprived Sector Loan OD TL: Base Rate + Premium Up to 4.00%
• Professional Loan: Base Rate + Premium 2.00% to 4.00%
• Deprived Sector wholesale OD DL TL: Base Rate + Premium Up to 2.00%

The credit administration department notes that floating loans secured directly against Fixed Deposit Receipts, National Saving Bonds, or Development Bonds will face an interest premium capped up to 2.00% above the original asset coupon rate.

Fixed Interest Rate Structures for Individual Term Loans

To protect retail individual borrowers from shifting market fluctuations and macroeconomic cycles, the bank provides a clear fixed interest rate framework covering essential consumer lending categories.

The fixed annual interest paths for individual consumer term loans are partitioned by duration into the following tiers:

• Home Loan: 11.00% for tenures up to 5 years, rising to 11.50% for terms extending above 5 years.
• Personal Loan TL: 11.00% for tenures up to 5 years, rising to 11.50% for terms extending above 5 years.
• Comfort Loan: 11.00% for tenures up to 5 years, rising to 11.50% for terms extending above 5 years.
• Education Loan: 11.00% for tenures up to 5 years, rising to 11.50% for terms extending above 5 years.
• Two Wheeler Loan: 11.00% for tenures up to 5 years, rising to 11.50% for terms extending above 5 years.
• Auto Loan: 11.00% for tenures up to 5 years, rising to 11.50% for terms extending above 5 years.

The bank management clarifies that commercial financing structured under complex Consortium Loans containing combined overdraft, bridge gap, or term elements will be priced strictly according to the specific consortium bank group decision.

Special Risk Provisions and Regulatory Directives

To maintain strict risk coverage and remain fully compliant with central bank oversight, the bank operates specialized pricing rules for targeted development categories and underperforming credit lines.

The critical secondary conditions applied to the credit matrix include:

• Watch List Premium Penalties: In compliance with national risk guidelines, credit accounts classified under the official watch list or other degraded asset exposure classifications are subject to an additional mandatory 2.00% premium interest charge.
• Targeted Small Scale Agriculture Tracks: For state sponsored Deprived Sector Loans and small scale Agriculture Loans capped up to 15 Lakhs Rupees, the interest cost is anchored at Base Rate plus a fixed 2.00% premium addition in accordance with specific Nepal Rastra Bank directives.
• Premium Product Guidelines: Interest rates applied across premium consumer lending programs will be charged and maintained in continuous alignment with central bank circulars.

By keeping credit differentials aligned with local regulatory rules, Lumbini Bikas Bank Limited continues to support industrial expansion while protecting its depositors’ assets across its extensive national branch network.

For More: Lumbini Bank Interest Rates