Secured Loans Kenya: The Central Bank of Kenya and the Kenya Bankers Association have released the list of banks charging the most for Sh. 1 million secured loan per year and those charging the least.
In this list, the most expensive bank is Absa Bank Kenya. For a Sh. 1 million secured one year loan, this bank will charge you Sh. 143,007. Absa’s charges are inclusive of interest (Sh. 71,807), negotiation fees (Sh. 33,000), legal fees (Sh. 25,000), credit life insurance (Sh. 6,600) and excise duty (Sh. 6,600).
Absa is closely followed in the list of expensive lenders by Sidian Bank whose Sh. 1 million secured loan costs Sh. 140,807. Ecobank Kenya is third with costs fuming at Sh.121,407.
The four Kenyan banks with the most expensive accounts
The list further says that if you take a Sh. 1 million loan at Family Bank, you will pay back an interest of 115,624. Standard Chartered Bank Kenya charges Sh. 115,000 and Equity Bank charges Sh. 108,057 for the same one year loan, the report noted.
Interest rates charged by the 36 banks in the database range from 11 percent to 13.63 percent, with the variations in the total cost of credit driven largely by differences in non-interest charges.
The bank with the cheapest loan charges is Bank of Baroda. For a Sh. 1 million secured one year loan, the bank charges Sh. 60,580. This implies that this lender does not slap additional charges disguised in terms such as insurance, processing fees, legal fees, and application fees which banks use to hike the cost of loans.
Credit Bank, First Community Bank, Housing Finance and Kingdom Bank are all pricing a Sh. 1 million personal secured loan at Sh. 71,807, almost all of it being interest charges. For a Sh. 1 million secured one year loan at KCB, a borrower will reportedly pay back a total of Sh. 71,807 in charges. However, it was not clear if this charge at KCB is inclusive of its negotiation charge or not. Secured Loans Kenya.