CBK shares banks with the cheapest personal, business & corporate loans

The Central Bank of Kenya (CBK) has released data showing the weighted average lending rates of various commercial banks across different loan categories, including personal, business, and corporate loans.

The report highlights the banks offering the most competitive interest rates for each category as of July 2024.

Personal loans

In regards to personal loans, Premier Bank Kenya Limited offers the lowest interest rate at 9.0% for both overdrafts and loans with a maturity period of 1-5 years and over five years.

Access Bank (Kenya) PLC follows with an 11.31% interest rate for overdrafts and loans ranging from 1-5 years, and slightly lower at 11.30% for loans over five years.

Ecobank Kenya Limited also provides competitive rates, offering 4.75% for overdrafts, which increase to 11.06% for loans maturing in 1-5 years and 14.36% for loans over five years.

Here are the top 10 banks with the cheapest personal loans

1. Premier Bank Kenya Limited - Offers a consistent rate of 9.0% for overdrafts, loans with a maturity of 1-5 years, and loans over five years.
2. Access Bank (Kenya) PLC - Offers 11.31% for overdrafts and loans with a maturity of 1-5 years, and slightly lower at 11.30% for loans over five years.
3. Ecobank Kenya Limited - Offers 4.75% for overdrafts, 11.06% for loans maturing in 1-5 years, and 14.34% for loans over five years.
4. Bank of India - Offers 15.10% for overdrafts, loans maturing in 1-5 years, and over five years.
5. UBA Kenya Bank Limited - Offers 14.72% for overdrafts, 15.46% for loans maturing in 1-5 years, and 15.83% for loans over five years.
6. Guardian Bank Limited - Offers 14.04% for overdrafts, 11.06% for loans maturing in 1-5 years, and 15.38% for loans over five years.
7. National Bank of Kenya Limited - Offers 16.00% for overdrafts, 17.02% for loans maturing in 1-5 years, and 17.00% for loans over five years.
8. Co-operative Bank of Kenya Limited - Offers 13.00% for overdrafts, 15.54% for loans maturing in 1-5 years, and 16.14% for loans over five years.
9. Family Bank Limited - Offers 16.97% for overdrafts, 17.90% for loans maturing in 1-5 years, and 17.45% for loans over five years.
10. Equity Bank Kenya Limited - Offers 12.20% for overdrafts, 16.93% for loans maturing in 1-5 years, and 14.96% for loans over five years.

Business loans

For business loans, the banks offering the most affordable rates include UBA Kenya Bank Limited, which offers a 3.83% interest rate on overdrafts, the lowest in this category.

Ecobank Kenya Limited provides a 4.65% rate for overdrafts and 14.36% for loans with a maturity period of 1-5 years, while Gulf African Bank Limited has rates of 13.71% for overdrafts, decreasing to 11.10% for loans maturing over five years.

Premier Bank Kenya Limited offers a stable rate of 9.0% for all maturity periods.

Here are the top 10 banks with the cheapest business loans

1. UBA Kenya Bank Limited - Offers 3.83% for overdrafts, 15.48% for loans maturing in 1-5 years, and 15.83% for loans over five years.
2. Ecobank Kenya Limited - Offers 4.65% for overdrafts, 14.36% for loans maturing in 1-5 years, and 17.61% for loans over five years.
3. Bank of India - Offers 15.10% consistently for overdrafts, loans maturing in 1-5 years, and loans over five years.
4. Guardian Bank Limited - Offers 11.06% for overdrafts, 15.38% for loans maturing in 1-5 years, and 15.99% for loans over five years.
5. Gulf African Bank Limited - Offers 13.71% for overdrafts, 14.83% for loans maturing in 1-5 years, and 16.51% for loans over five years.
6. Premier Bank Kenya Limited - Offers 9.0% consistently for overdrafts, loans maturing in 1-5 years, and loans over five years.
7. Access Bank (Kenya) PLC - Offers 11.33% for overdrafts, 11.45% for loans maturing in 1-5 years, and 11.25% for loans over five years.
8. Equity Bank Kenya Limited - Offers 14.44% for overdrafts, 16.75% for loans maturing in 1-5 years, and 18.02% for loans over five years.
9. Co-operative Bank of Kenya Limited - Offers 15.37% for overdrafts, 16.24% for loans maturing in 1-5 years, and 16.14% for loans over five years.
10. Diamond Trust Bank Kenya Limited - Offers 12.25% for overdrafts, 12.40% for loans maturing in 1-5 years, and 12.18% for loans over five years.

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Corporate loans

Regarding corporate loans, the most competitive rates are offered by UBA Kenya Bank Limited, with a 3.83% rate for overdrafts, and Equity Bank Kenya Limited, with rates ranging from 4.41% for overdrafts to 18.02% for loans over five years.

Gulf African Bank Limited provides relatively low rates, starting at 13.71% for overdrafts and decreasing to 11.06% for loans over five years.

Top 10 Banks with the Cheapest Corporate Loans:

1. UBA Kenya Bank Limited - Offers 3.83% for overdrafts, 15.48% for loans maturing in 1-5 years, and 15.30% for loans over five years.
2. Ecobank Kenya Limited - Offers 4.65% for overdrafts, 19.23% for loans maturing in 1-5 years, and 20.73% for loans over five years.
3. Gulf African Bank Limited - Offers 13.71% for overdrafts, 16.25% for loans maturing in 1-5 years, and 16.51% for loans over five years.
4. Premier Bank Kenya Limited - Offers a stable rate of 9.0% across all maturity periods for corporate loans.
5. Guardian Bank Limited - Offers 11.06% for overdrafts, 15.73% for loans maturing in 1-5 years, and 16.18% for loans over five years.
6. Diamond Trust Bank Kenya Limited - Offers 12.35% for overdrafts, 12.40% for loans maturing in 1-5 years, and 12.44% for loans over five years.
7. Co-operative Bank of Kenya Limited - Offers 16.24% for overdrafts, 15.63% for loans maturing in 1-5 years, and 15.83% for loans over five years.
8. Family Bank Limited - Offers 17.10% for overdrafts, 16.71% for loans maturing in 1-5 years, and 17.00% for loans over five years.
9. Equity Bank Kenya Limited - Offers 14.96% for overdrafts, 19.55% for loans maturing in 1-5 years, and 18.02% for loans over five years.
10. Development Bank of Kenya Limited - Offers 17.10% for overdrafts, 16.31% for loans maturing in 1-5 years, and 16.56% for loans over five years.

Overview of lending rates across banks

The release of this data by the Central Bank of Kenya provides valuable insights into the lending landscape, enabling consumers and businesses to make informed choices regarding their financial needs.

With interest rates differing substantially across banks and loan categories, individuals and organisations are advised to assess the terms carefully before committing to a loan, ensuring they choose the most cost-effective options available.

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