Are you looking for a business loan in Kenya? The Central Bank of Kenya has published average bank lending rates on its website showing the most expensive and least expensive lenders in the business and personal loans category. This post will focus on business loans which often attract the highest interest rates and hidden charges.
Most expensive lenders for business loans in Kenya
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.
Cheapest Lenders for business loans in Kenya
|Gulf African Bank||16%|
|First Community Bank||16.8%|
|Diamond Trust Bank||17.2%|
|Bank of India||17.5%|
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. Therefore the effective rates charged by individual banks may be higher than these published interest rates depending on the other fees and charges.
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. 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.