Sunday, July 21, 2024
HomeEditor's PickEquity Bank lowers lending rates

Equity Bank lowers lending rates

Reduced rates will apply to new and existing loans, including group loans, microfinance loans and mobile loans as well as credit cards

Nairobi, August 3, 2018 .In compliance with the Central Bank of Kenya guidelines, Equity Bank has lowered the interest rate charged on loans to a maximum of 13%p.a with effect from Wednesday, 1 August 2018 to reflect the new Central Bank Rate (CBR) of 9%.

This move comes a few days after CBK announced the drop in rates. It is a welcome relief to Equity Bank customers as it will apply to new and existing loans, including group loans, microfinance loans and mobile loans as well as credit cards.

Equity Bank has consistently aligned its interest rates to the CBR in a bid to provide affordable and convenient financial solutions to its customers. The Bank slashed its lending rates to 13.5% in March 2018, and before that to 14% in September 2016, after the interest capping law came into effect on 14th of the same month.

The minimum interest on saving deposits at Equity Bank has also been capped at 6.3% which follows the stipulation of the Monetary Policy Committee (MPC) to pay interest at 70% of CBR.

While announcing the reduction in interest rates, Equity Group CEO and Managing Director Dr. James Mwangi said he was positive that this move will result in economic growth, which will create significant opportunities and employment for the youth.

“It is now anticipated that the affordable interest rates will stimulate private sector borrowing, thus enhancing the economic growth rate,” he said.

The new revised rates are in compliance with the interest capping law that requires commercial banks and mortgage finance companies to lower lending rates to 13% from 13.5%.  The law allows an interest margin of only 4 percentage points above the CBR. In the latest review, the MPC cut the base lending rate by 50 basis points to 9% down from 9.5%.

Alex Muhia,Equity Bank Group,T: 0763 026 007 (Office)



- Advertisment -

Most Popular

Recent Comments

Anthony Mutai on Kephis certfied nurseries
GEORGE GAKUO on Kephis certfied nurseries
Beatrice Atieno on Change of guard at Sian Roses
Thomas M.Nzesi on Kephis certfied nurseries
Samson Ongus on Kephis certfied nurseries
Mr Ombeva Iduvagwa on Flowers From Molo Greens
Kipkemoi Samson on Cabbage production tips
JOYCE NAKHANU WAMALWA on Kenya avocados export on the rise
justus wandera on Cabbage production tips
MICHAEL BENEDICT on Kenya avocados export on the rise
murimi gathoni on Cabbage production tips
Olipha Kerubo Atambo on Kenya avocados export on the rise
Mbusa Stephen on Production of Apples
Sospeter Lemoigo on Kephis certfied nurseries
Benjamin temo on Cabbage production tips
Rashid Kipchumba on Kenya avocados export on the rise
Beatrice Ledama on Cabbage production tips
Akello Babra on Cabbage production tips
David gechure ondora on Cabbage production tips
Rutoh titus on Cabbage production tips
Emmanuel Barasa on Cabbage production tips solomon on Bungoma’s growing passion