Kathmandu, August 25
Commercial banks in Nepal have reported an alarming increase in the “default rate” of credit cardholders.
It means the number of people not paying back credits that they used on credit cards is on the rise in Nepal.
Of late, the number of notices that they publish in newspapers calling the cardholders to pay back has increased.
Whereas the average credit card default rate was around 10 per cent before Covid, it has reached around 20 per cent now, according to a banker.
Bankers worry if this trend continues, it will create problems in the sector in the long run although credit card use has been quite popular across the world.
According to the Nepal Rastra Bank data, there are 238,794 credit cardholders in Nepal as of mid-July 2022.
