Cooperative Bank of Kenya has the cheapest loan rates for tier-one commercial banks in Kenya for those taking personal or business overdrafts.
This is according to the latest Central bank of Kenya (CBK) data for August 2024, which indicates that those taking an overdraft in the personal loans category will be charged 12.02% by Cooperative Bank of Kenya. The report highlights that those who borrowed an overdraft in the business loan category in August 2024 were on averaged charged 12.28%.
This is compared to 25.11% charged by Middle East Bank Kenya for an overdraft in the personal loans category and 22.47% charged by Absa Bank Kenya for an overdraft in the business loan category.
The CBK data indicates that Cooperative Bank of Kenya charges the second lowest interest rate on loans on average for tier-one commercial banks in Kenya.
The data indicates Co-op Bank charged a mean interest rate of 15.14% on all loans in August 2024. This rate was only bettered by Diamond Trust Bank whose monthly average was 12.41%.
There are nine tier-one commercial banks in Kenya namely; Equity, KCB, Co-operative Bank, NCBA, Absa, Standard Chartered Bank, I&M, Diamond Trust Bank and Stanbic Bank.
Ranking in terms of the average interest rates on loans for August 2024;
- Diamond Trust Bank – 12.41%
- Co-operative Bank – 15.14%
- Equity Bank – 16.12%
- KCB – 16.26%
- Stanbic Bank – 17.39%.
- Standard Chartered Bank – 17.81%
- I&M – 18.53%
- NCBA – 18.73%
- Absa – 19.92%
The second CBK report on interest rates published Friday about how the 38 commercial banks in Kenya priced their loans during the month of August 2024 indicates that Middle East Bank with an overall lending rate of 21.36% per annum is the most expensive bank in the country.
The report indicates that Premier Bank offers the most affordable loans at a mean of 9%.