KENYAN BANKS WITH FRIENDLY RATES ON LOANS 2016

Most Kenyans don't or usually get loans from Kenyan financial institutions with the fear of paying heavy interest rate in comparison to the intended use of the money. They worry about not getting value from their loans.
According to CBK,in a review of institutions offering various types of loans to Kenyans done by February 2016,t  here are the banks with consumer friendly rates.

Housing Finance and Family Bank had
the lowest loan rates in the last quarter
of 2015 while Middle East Bank and
Guaranty Trust Bank were the most
expensive.
The move is meant to promote
competition and transparency in
pricing of loans and reign in on high
interest.
In the personal loans category of
between one and five years, K-Rep Bank
at 25.7 per cent offered the most
expensive credit as at mid-December
2015. Consolidated Bank comes second,
charging 25.4 per cent interest as
December 15.
The lender with the third cheapest
personal loans is Middle East
Commercial Bank at 24.2 per cent. UBA
Bank takes the number four slot at 24.1
per cent on personal loans. Guaranty
Trust Bank charged 23.7 per cent
interest.
Conversely, in the personal loans
category for between one and five
years, Habib Bank Ltd at 8.4 per cent
charged the cheapest rate. Guardian
Bank Ltd at 14.1 per cent offered the
second cheapest loans while National
Bank of Kenya at 14.7 per cent was the
third most affordable. Family Bank and
Housing Finance share fourth slot.
In its comparative report, CBK notes
that over and above these interest rates,
the banks may levy other fees and
charges, including administration,
processing, valuation, legal and
commitment fees, among others.

EFFECTIVE RATES CHARGED
“Therefore the effective rates charged
by individual banks may be higher than
these published interest rates depending
on the other fees and charges levied on
loan products by the specific bank,” says
the regulator.
“The actual rates are based on
negotiations between the bank and the
borrowing customers. It should be noted
that the published interest rates only
constitute banks’ lending rates.”
For business loans repayable between
one and five years, K-Rep Bank at 27.2
per cent gave the most costly loans as at
December 15. It is followed by Jamii
Bora Bank at 24 per cent with Guaranty
Trust Bank coming in third at 23.4 per
cent.
Meanwhile NIC Bank at 22.7 per cent
comes in at number four as the lender
with the most costly loans.
Transnational Bank is the fifth most
expensive lenders at 23 per cent
interest rate.
Conversely, UBA Kenya at 15.2 per cent
offered the cheapest business loans
while Gulf African Bank at 16 per cent
was the second cheapest lender of
business loans. First Community Bank
at 16.8 per cent is the third cheapest
lender of business loans.
Diamond Trust Bank at 17.2 per cent is
the fourth cheapest lender while Bank
of India at a rate of 17.5 per cent is the
fifth cheapest lender.
For the overall average weighted
lending rate for each commercial bank
which represents the weighted average
rate across all loan categories
(corporate, business and personal) and
maturities (overdraft, 1-5 years and
over 5 years) Middle East Commercial
Bank at a rate of 24.6 per cent is the
most expensive lender.
It is closely followed by K-Rep Bank at
24.2 per cent which makes it the second
most costly lender with Guaranty Trust
Bank at a rate of 23.8 per cent
becoming the third most expensive
lender. Credit Bank at a rate of 22.5 per
cent is the fourth mostly costly lender
while I&M Bank at 20.8 per cent is the
fifth most costly lender.
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