Cost of Credit Kenya: If you are looking to take a bank loan, you will do well to target lenders who have the most affordable cost of of credit. Here is a list of the top five lenders with cheap loans. Cost of Credit Kenya:
1). Bank of Baroda
According to the KBA’s cost of credit tabulations, Bank of Baroda has one of the cheapest personal secured and unsecured loans in Kenya. If you take a loan of Sh. 500,000 for a period of 12 months at this bank, your total cost of credit inclusive of interest will be Sh. 30,290. You will pay back a total of Sh. 530,290 with monthly repayments of Sh. 44,191. Those eligible to apply are salaried persons, businessmen, and professionals such as doctors. To apply, you may need your ID, a copy of your KRA PIN, certified copies of last three months’ pay slips, proof of address, certified copies of last six months bank statement (in case of borrowers who are not customers), guarantor who is a customer to the bank and whose salary is remitted through to bank, and guarantee of the employer.
2). Credit Bank
At Credit Bank your total cost of credit will be Sh. 35,904. The total amount you will pay back will be Sh. 535,904 with monthly installments of Sh. 44,659. To get a personal loan from this bank, you will need to be a salaried employee. If you’re on contract, the tenure of your loan will match the remaining term of your contract. You will need to present a letter of introduction from your employer, letter of irrevocable instruction to remit salary, 6 months certified bank statements from your previous bankers, proof of address, and 3 months certified and latest original pay slips.
3). Diamond Trust Bank
Your will repay a total of Sh. 545,904. This will be inclusive of bank charges and interest amounting. To get a secured personal loan at NSE-listed DTB, you will need to present your KRA Pin, bank statements for the last six months, account status reports if you have loans from other banks, copies of logbook, valuation report, and title deed if any of them is security, details of your fixed deposit if allowed to be security.
At this top tier bank, the total amount you will pay back will be Sh. 548,439 for the personal secured loan and Sh. 551,258 for personal unsecured loan. You will however be eligible to borrow a minimum of Sh. 50,000 and a maximum of Sh. 4 million. To get this loan, the bank will require that you be employed with a regular salary. Your application will be appraised with your credit score. If your credit score is good and you have a regular salary, the bank will require that you open an account and submit a copy of your KRA Pin, salary slips for last 3 months, a filled loan application form, and a copy of your ID.
5). Bank of Africa
Your total cost of credit will be Sh. 49,593. Your total interest will be Sh. 33,093 while the total amount you will repay will be Sh. 549,593. To get a loan from this lender, you will be required to apply for a minimum of Sh. 50,000 and a maximum of Sh. 2 million. You will present your KRA Pin, a copy of your ID, original pay slips for the immediate past three months, certified copies of bank statements for the last six months if you’re not a bank customer currently, a letter from your employer confirming employment and commitment to send your monthly salary through this bank, and a duly filled loan application form.
The costs at NSE-listed lenders
According to KBA’s cost of credit estimates, the total amount you will repay if you take the same loan at these NSE listed top tier banks will be as follows:
- Stanbic Bank: Sh. 550,235 for both personal secured and unsecured loans.
- KCB: Sh. 551,104 for both personal secured and unsecured loans.
- Equity Bank: Sh. 551,529 for the personal secured loan and Sh. 554,029 for personal unsecured loan.
- Standard Chartered: Sh. 557,500 for the personal secured loan and Sh. 552,442 for the personal unsecured loan.
- ABSA Kenya: Sh. 568,204 for the personal secured loan option and Sh. 555,704 for the unsecured option.