The Central Bank of Kenya (CBK) has released data showing the weighted average lending rates of various commercial banks across different loan categories, including personal, business, and corporate loans.
The report highlights the banks offering the most competitive interest rates for each category as of July 2024.
In regards to personal loans, Premier Bank Kenya Limited offers the lowest interest rate at 9.0% for both overdrafts and loans with a maturity period of 1-5 years and over five years.
Access Bank (Kenya) PLC follows with an 11.31% interest rate for overdrafts and loans ranging from 1-5 years, and slightly lower at 11.30% for loans over five years.
Ecobank Kenya Limited also provides competitive rates, offering 4.75% for overdrafts, which increase to 11.06% for loans maturing in 1-5 years and 14.36% for loans over five years.
For business loans, the banks offering the most affordable rates include UBA Kenya Bank Limited, which offers a 3.83% interest rate on overdrafts, the lowest in this category.
Ecobank Kenya Limited provides a 4.65% rate for overdrafts and 14.36% for loans with a maturity period of 1-5 years, while Gulf African Bank Limited has rates of 13.71% for overdrafts, decreasing to 11.10% for loans maturing over five years.
Premier Bank Kenya Limited offers a stable rate of 9.0% for all maturity periods.
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Regarding corporate loans, the most competitive rates are offered by UBA Kenya Bank Limited, with a 3.83% rate for overdrafts, and Equity Bank Kenya Limited, with rates ranging from 4.41% for overdrafts to 18.02% for loans over five years.
Gulf African Bank Limited provides relatively low rates, starting at 13.71% for overdrafts and decreasing to 11.06% for loans over five years.
The release of this data by the Central Bank of Kenya provides valuable insights into the lending landscape, enabling consumers and businesses to make informed choices regarding their financial needs.
With interest rates differing substantially across banks and loan categories, individuals and organisations are advised to assess the terms carefully before committing to a loan, ensuring they choose the most cost-effective options available.
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