Following a directive by the Central Bank of Kenya, Equity Bank has issued a notice to its customers announcing new lending interest rates. The directive caused the bank to lower their lending rates from 14% which had been there since 2016 to 13.5%. The rates will also include Micro, mobile loans and credit card facilities such as Eazzy loan and Eazzy Plus Loan.
In 2016 September, The Central Bank of Kenya issued a directive lowering the interest rates to 14%. Equity customers will now be able to borrow at a lower interest rate for all the mentioned services. The new Central bank Rate (CBR) is 9.5 %, then you add 4% which brings the maximum interest on loans to 13.5%. This is because the law allows banks to cap their interest rates just 4% above the Central Bank of Kenya.
The statement issued by Central Bank of Kenya applies to all loans through mobile phones or through other third-party platforms or collaborations with Mobile Network Operators (MNOs), credit card facilities as well as microfinance loans.
The directive applies to any facility provided by an institution that falls under the Banking Act. The new lending rates will apply effective from Tuesday 20th March 2018. This new interest rate is in line with the Bank’s commitment to providing innovative affordable and convenient financial solutions that will continue to expand customer opportunities. The move will also help existing borrowers since they can save on their interest payments.