mwekez@ji wrote:mwekez@ji wrote:mwekez@ji wrote:Ericsson wrote:Co-op Bank---16.5%
Barclays bank---15.5%
KCB---16%
HFCK---18%
On Coop, BBK, KCB, is that base rate or the effective rate coz for the HFCK it is effective rate and its revision is long overdue
.... and any idea on the loan processing fees charged by each of these lenders and any other charges imposed on the lending?
cc @Banker, et al #Post 32 >>>>
http://www.wazua.co.ke/forum.as...&m=403936#post403936 @Mwekezaji, these are actually the effective lending rates for mortgage only. Infact BBK and COOP are the only ones below 16%. i.e. BBK 15.5% & coop 15.75%. Which is a pity really because the largest bank in terms of assets and deposits is KCB. They can actually offer a rate of 14% on mortgage considering their low cost of funds.
The processing charges range from 1%-2.5%, then you throw in the legal and valuation fees.
ION; Did you know that you can still borrow and single digit in Kenya. My employer is lending foreign currency denominated loans at 8%. But you need to be earning in forex; either as a diaspora or in the export business.
Question : Suppose you earn in Kes like everyone else, If you borrowed @ 8%, then buy the forex to service the loan, would the savings in interest expenses take care of the exchange rate risk ?
A good homework for Wazuans ?