In compliance with the Central Bank of Kenya guidelines, Equity Bank has lowered the interest rate charged on loans to a maximum of 13 per cent with effect from Wednesday, August 1, 2018.
This reflects the new Central Bank Rate (CBR) of 9 per cent. This move comes a few days after CBK announced the drop in rates.
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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.
The minimum interest on saving deposits at Equity Bank has also been capped at 6.3 per cent which follows the stipulation of the Monetary Policy Committee (MPC) to pay interest at 70 per cent of CBR.
Equity Group CEO and Managing Director 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.