StanChart slashes loan rates by 3.5pc

By James Anyanzwa

Standard Chartered Bank has reduced the cost of borrowing on personal loans by 3.5 per cent.

The move follows efforts by Central Bank of Kenya (CBK) to stimulate the economy after reduced the Central Bank Rate (CBR) by four times and reduced the Cash Reserve Ratio (CRR), expecting commercial banks to transfer the same benefits to the customer.

Mr Bhartesh Shah, the bank’s head of retail products said that bank was optimistic that the move will open access to credit to people who wished to borrow but were restricted by the cost of credit.

The rate of 16 per cent represents the lowest rate for personal loans offered by any major bank in Kenya. "As a bank, we are always looking for ways to fulfill our customer needs. Our customers can also use this lower rate to consolidate loans at the lowest repayment rates," said Shah yesterday in a statement.

Shah said the bank would remain open for business and would continue to weigh opportunities depending on the response from its customers and chart a longer-term pricing strategy.

While most banks remain sceptical about the opportunity to attract more business and minimise the risk of defaults, Standard Chartered customers can borrow up to a maximum of Sh3 million at 16 per cent per annum, enjoy free loan transfers from other banks, fastest loan processing and pay up to 60 months at Standard Chartered Bank.