I&M Bank and Standard Chartered lead a group of large lenders in offering the most expensive loans in the market, according to the ranking based on tabulations of banks’ charges.
A borrower taking a Sh1 million personal unsecured loan for one year from I&M will incur a total credit cost of Sh127,140 and in StanChart, a similar loan will incur a cost of Sh117,745.
The same loan size on similar duration at Equity Bank at Sh114,057 and Co-operative Bank at Sh111,929.
According to the site, the lowest cost of credit is an Absa Bank loan at Sh76,147 while the other four lenders charge between Sh95,807 (DTB) and Sh107,207 (KCB) for their loans.
KCB, Equity, NCBA, and DTB charge interest at 13 per cent, with I&M at 14.3 per cent, StanChart at 14 per cent, while Absa and Stanbic levy 13.77 per cent, and 13.65 per cent respectively.
DTB published the lowest non-interest costs at Sh24,000, while the highest charges are on I&M loans at Sh48,000.
The ranking is based on tabulations of banks’ charges on the website developed by the Kenya Bankers Association (KBA) and the Central Bank of Kenya (CBK) to boost transparency and competition in the lending market.