@ all,as of last week stanchart lowered their interest rate for unsecured personal loans from 19.75% to 16%. (RB). I have not checked with them to see when this will be effected,but may be someone here has. People,whats your take on this? Is it going to be sustained at this level or they want to suck us into the vicious cycle of debts?

Someone moved my post from investments to pennywise but...hai(t)dhuru may be i wasnt sure where to post it! @ Wote,thanx man bt am more confused. All along from my earlier experience with Kenyan banks,the hidden charges and what not are levied on the principal that you borrow. They are not lumped up together with the interest rate,that is,16% does not translate to 24%. You still payback @ 16%? I stand to be corrected by the banking experts in the house.

Litro,the figures i gave you are extracted from my loan given to me by K.C.B at the base rate of 15%when i realised what i had just signed,i decided to repay the same in one installment and that is when i got to see 3% early repayment.

Ask them to do for you what they call loan amortization and the picture will be very clear.


wote

Just called them and;

Insurance 0.3%
Processing 3%
Legal fee - N/A
Borrow upto KES 3M
Free Loan transfer
Repayment upto 60 Month
They come to you i.e. At your door service

Need More details?

Randomly insane

@Kamaa,If you have a loan with another institution you can transfer the loan balance at no extra charge,and enjoy the 16% interest rate offer...... 3293900 for more details

Randomly insane

@ K22 just called them as well and the terms and conditions that apply are as follows;

1. Arrangement fee (Processing fee) @ 2.5 % of the principal.

2. Insurance fee @ 0.3%.

3. Free loan transfer (if any) from your current institution.

4. Copy of ID,Coloured passport,intoduction letter from employer stating your current salary,statement from your bank for the past 6 months showing the proceeds from your employer,if you dont bank with them.

5. 16% interest repayment rate which is subject to the prevailing economic conditions. *****Can change if the base lending rate of stanchart changes.

6. All in all,i think its a good move by stanchart,but all we want is,certainity that the interest rate is not going to skyrocket to 24% in 6 months time. and just like they said,its dependent on the prevailing economic conditions,which are out of their control.

Your take on it guys- but more on the economic prospects?

also: when one transfers a loan from BBK which was charging 18% interest,will the rates drop to 16% as soon as one moves to stanchart?

retirement at 40.

@ Kamaa..i will have to concur with you that this free loan transfer thingy is not quite clear. But i suppose,initially they used to charge you if you transfered your debts from your current bank to them. This sounds strange because it is like asking your mechanic to pay you inorder for them to service your car. But i am sure if you transfered your current loan to stanchart,your ex bank will charge you for that....may be breach of contract??? i am not sure.

Stanchart need to reduce the interest rate for existing borrowers as well. The new rate applies to new borrowers only.

God is good

@Sasha

ooh; so they loan me the penalties charged by my current creditor/bank incase of early repayment,i initially thought there is some arrangement between the banks to waive the penalty when i transfer the loan from bank A to B.... now I know.

none