Co-operative Bank of Kenya is the to go to bank if you are looking for the cheapest overdraft, according to the latest data from the Central Bank of Kenya (CBK).
The CBK’s average lending rates data compiled for September 2024, indicates that Co-operative Bank of Kenya charges the lowest interest on overdraft among the largest banks in Kenya, in the three categories of customers comprising personal, business and corporate clients.
This is the second month in a row that Co-operative Bank of Kenya has beat peers in offering the lowest overdrafts.
The data shows that the interest charged by Co-operative Bank of Kenya for overdrafts is nearly half when compared to the most expensive peer.
If you are looking for an overdraft repayable in less than a year, Co-operative Bank of Kenya will charge you 11.05% while the NCBA charges 20.66%.
Interest on overdraft for personal loans
- Co-operative Bank – 11.05%
- Diamond Trust Bank – 12.06%
- Equity Bank – 12.69%
- Standard Chartered Bank – 13.39%
- Absa – 13.64%
- KCB – 16.32%
- Stanbic Bank – 17.47%.
- I&M – 17.94%
- NCBA – 20.66%
For businesses, Co-operative Bank of Kenya charged 12.15% for overdrafts repayable in less than a year, while Absa slapped 22.52% interest on the same facility.
Interest on overdraft for business
- Co-operative Bank – 12.15%
- Diamond Trust Bank – 12.40%
- Equity Bank – 13.61%
- Standard Chartered Bank – 17.24%
- I&M – 17.26%
- KCB – 17.56%
- Stanbic Bank – 17.75%.
- NCBA – 20.63%
- Absa – 22.52%
Co-operative Bank of Kenya charged 10.48% on overdrafts by corporate clients repayable in over five years as compared to 19.59% by Absa on a similar facility.
Interest on overdraft for corporate for over five years
- Co-operative Bank – 10.48%
- Diamond Trust Bank – 12.84%
- Equity Bank – 13.97%
- KCB – 17.25%
- I&M – 17.26%
- NCBA – 18.22%
- Standard Chartered Bank – 18.82%
- Stanbic Bank – 19.38%.
- Absa – 19.59%
On average, the data shows that Co-operative Bank of Kenya was very competitive in pricing its loans. The lender offered the second lowest interest rate on loans on average among the nine large banks in Kenya.
The CBK data shows that Co-operative Bank of Kenya charged a mean overall interest rate of 14.88% which compared very favourably to fellow tier-one Absa’s 20.02%.
Overall average lending rates among tier-one banks
- Diamond Trust Bank – 12.44%
- Co-operative Bank – 14.88%
- KCB – 16.02%
- Equity Bank – 16.20%
- Standard Chartered Bank – 17.75%
- I&M – 18.24%
- NCBA – 19.22%
- Stanbic Bank – 19.36%.
- Absa – 20.02%
The CBK’s average lending rates data shows that Co-operative Bank of Kenya is among banks charging low lending rates in the banking industry.
