Kenyan Banks With Cheapest And Most Expensive Loans

(Last Updated On: June 9, 2015)

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For quite a long time, it was hard to know what interest rate you will be charged in different banks when seeking a loan hence its hard to make comparisons. The Kenya Banks Reference Rate (KBRR) was introduced to provide a standard pricing mechanism. Banks then are allowed to add a premium on the base to cater for their operating expenses and costs of cash.

interest rates

Currently the KBRR stands at 8.5%. The cost of a loan in most Kenyan banks is higher than this. Most lenders will need you to have a banking history for at least 6 months before they can hand you any money in form of loans.

Here are some of the loan interest rates provided by various banks in Kenya.

ASSET FINANCE LOANS

This is a short loan given to customers mainly to buy moveable capital assets like motor vehicles, construction equipment, office equipment, plant and machinery in industries, agricultural equipment etc.

10 Cheapest Banks In Asset Finance Loans

1. K-Rep Bank – 9.91%

2. Equity Bank  – 10%

3. Trans-National Bank – 10%

4. African Banking Corporation – 13%

5. Kenya Commercial Bank – 13.85%

6. Co-operative Bank – 15.43%

7. Commercial Bank of Africa (CBA) – 15.43%

8. CFC Stanbic – 15.58%

9. Stanadrd Chartered Bank – 15.9%

10. NIC Bank – 16.12%

 

10 Most Expensive Banks In Asset Finance Loans

1. Oriental Commercial Bank – 18.21%

2. Consolidated Bank Ltd – 18.31%

3. Credit Bank Ltd – 19%

4. Guaranty Trust Bank Ltd – 19.55%

5. Bank Of Africa – 19.7%

6. Jamii Bora Bank – 20.41%

7. Equatorial Commercial Bank – 20.5%

8. First Community Bank – 20.54%

9. Barclays Bank of Kenya – 21.41%

10. Ecobank Kenya – 21.5%

 

BUSINESS OVERDRAFT FACILITY

This is when one is able to withdraw more money than they have in their account. The amount that is over the amount that was in their account is counted as a loan.

10 Cheapest Banks In Business Overdraft Facility

1. Paramount Universal Bank – 14%

2. CBA – 14.58%

3. Equatorial Commercial Bank – 15%

4. NIC Bank – 15.08%

5. Habib Bank  – 15.3%

6. KCB – 15.71%

7. Giro Commercial Bank – 15.88%

8. ABC – 16.13%

9. Bank Of Baroda – 16.37%

10. Development Bank – 16.91%

 

10 Most Expensive Banks In Business Overdraft Facility

1. Housing Finance -19%

2. Guardian Bank – 19.28%

3. Dubai Bank – 19.29%

4. Chase Bank – 19.3%

5. Co-operative Bank – 19.34%

6. Credit Bank – 19.5%

7. Consolidated Bank  Ltd – 19.91%

8. Jamii Bora Bank – 20.41%

9. Standard Chartered Bank Ltd – 24%

10. K-Rep Bank Ltd – 24.41%

 

CONSUMER LOANS OF 1-2 YEARS

5 Cheapest Bank In Consumer Loans of 1-2 years

1. Paramount Universal Bank – 9.5%

2. Bank of India – 12.17%

3. ABC – 12.5%

4. Dubai Bank – 12.91%

5. UBA Kenya Bank – 14.75%

 

5 Most expensive Banks In Consumer Loans of 1-2 years

1. Middle East Bank of Kenya – 19%

2. Barclays Bank of Kenya – 19.86%

3. Ecobank Kenya – 20.33%

4. Guardian Bank – 20.77%

5. Imperial Bank – 21.16%

 

CONSUMER LOANS OF 2 YEARS TENURE OR MORE

5. Cheapest Banks In Consumer Loans of 2 years or more tenure

1. Dubai Bank – 12.91%

2. Family Bank – 14.62%

3. National Bank of Kenya – 14.71%

4. Commercial Bank Of Africa- 15.3%

5. NIC Bank – 15.38%

 

5 Most Expensive Banks In Consumer Loans of 2 years or more tenure

1. First Community Bank – 17.87%

2. African Banking Corporation – 19%

3. Standard Chartered Bank – 19.4%

4. Ecobank Kenya – 19.57%

5. Gulf African Bank – 19.57%

 

SME LOANS

5 Cheapest Banks In SME Loans

1. African Banking Corporation – 14.63%

2. CBA – 14.81%

3. Bank Of Africa Kenya – 15.69%

4. Standard Chartered Bank Kenya – 16%

5. Guardian Bank Kenya – 16.56%

 

5 Most Expensive Banks In SME Loans

1. Habib Bank – 24.41%

2. K-Rep Bank – 24.41%

3. Trans-National Bank – 21.13%

4. Ecobank Kenya – 20.77%

5. Equatorial Comm. Bank – 20.75%