When looking for the Cheapest bank loans in Kenya, it is essential to compare the interest rates and other terms offered by different lenders. The cost of credit is one of the most important factors to consider when choosing a loan.
The Central Bank of Kenya (CBK) regulates the maximum interest rate banks can charge on loans. The maximum rate is currently 14 percent. However, this does not mean that all banks charge the same interest rate.
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Why is it essential to Consider the Cheapest Bank Loans in Kenya before you Apply?
The actual cost of credit will vary depending on the bank you choose and the type of loan you are looking for. It is essential to compare the offers from different banks before you decide which one to apply to.
Interest rates: The interest rate is the most critical factor when comparing bank loans. Make sure to compare the interest rates offered by different banks.
The total cost of credit: The total cost of credit includes the interest rate plus any additional charges that the bank may levy. Make sure to compare the full price of credit before you decide which loan to apply for.
Loan repayment period: The length of time you have to repay the loan will also affect the total cost of credit. Compare the repayment periods offered by different banks before deciding which loan to apply for.
Minimum monthly payment: The minimum monthly payment is the lowest amount you will have to pay each month to repay the loan. Compare the minimum monthly prices before you decide which loan to apply for.
Late payment charges: Some banks may charge you a fee if you miss a payment or make a late payment. Compare the late payment charges before you decide which loan to apply for.
Pre-payment charges: Some banks may charge you a fee if you repay the loan early. Compare the pre-payment charges before you decide which loan to apply for.
Cheapest Bank Loans in Kenya
The cost of living in Kenya is constantly on the rise. This has made it difficult for many people to make ends meet. As a result, more and more people are turning to loans to help them make ends meet. However, with the high-interest rates charged by most banks, getting a loan can be pretty expensive.
Fortunately, according to research done by Business Daily, a few banks in Kenya offer relatively cheap loans. Here is a list of the most affordable bank loans in Kenya.
1. Bank of Baroda
The Bank of Baroda is one of the leading banks in Kenya that offers cheap loans. The bank provides various loan products at relatively low-interest rates, making it an excellent option for borrowers looking to save on their loan payments.
In addition to offering some of the cheapest loans in Kenya, the Bank of Baroda also provides excellent customer service and a wide range of banking products and services.
As a result, the Bank of Baroda is an excellent option for borrowers looking for a reliable and affordable bank loan.
2. Kenya Commercial Bank
KCB is the largest bank in Kenya regarding assets and deposits and has a long-standing reputation as one of Kenya’s most stable and reliable banks.
The bank offers loans at very competitive rates with flexible repayment terms, thus making it another excellent option for borrowers looking for cheap loans in Kenya.
It offers a wide range of products and services, including loans, credit cards, savings accounts, and investment accounts. The bank focuses on customer service and offers competitive interest rates on its loan products.
3. Housing Finance (HF)
HF is a mortgage bank that focuses on providing affordable housing solutions to its customers. It is one of the oldest mortgage banks in Kenya, founded in 1965, and has experienced rapid growth in the past few years.
Today, HF is one of the leading housing finance providers in Kenya, with a strong focus on serving low- and middle-income families.
In addition, the company has a solid commitment to social responsibility, supporting initiatives such as housing for low-income families and microfinance for small businesses as a result of its focus on affordability and social.
4. First Community Bank
First Community Bank is a Sharia-compliant bank in Kenya approved by the CBK founded in 2007.
It is one of the few financial institutions in the country that provides an Islamic banking experience.
The bank has a wide range of products and services, including current accounts, savings accounts, term deposits, foreign exchange, money transfer, mobile banking, online banking, personal loans, business loans, corporate banking, etc.
5. Credit Bank Limited
Credit Bank is a small commercial bank in Kenya founded in 1986.
The bank focuses on providing affordable banking products and services to its customers. This bank offers one of the cheapest overdraft facilities in Kenya. The facility comes with low-cost installments and a very low-interest rate.
The bank also offers other products such as savings accounts, term deposits, personal loans, car loans, home loans, and credit cards.
6. Access Bank Kenya
Access bank is one of the top banks in Kenya, known for offering loans at relatively lower rates.
The bank has a wide range of loan products that cater to the needs of both individuals and businesses.
For instance, the Access Bank Personal Loan is ideal for those who need quick access to funds to finance an emergency or unplanned expenditure. The loan is also affordable, with rates as low as 14.5% per annum.
7. Bank of India-Kenya
This is a subsidiary of the Bank of India headquartered in Mumbai. The bank has five branches across the country and has been operational in Kenya since 1953, making it one of the oldest banks in the country. It offers a wide range of banking products and services, including loans.
BOI-Kenya provides short-term and long-term loans at reasonable interest rates and repayment periods. The bank has an outstanding reputation among the people of Kenya and is known for its efficient service and competitive interest rates.
8. Habib Bank AG Zurich
Habib Bank AG Zurich is a leading Swiss bank that has been operational in Kenya since 1978. The bank has grown to become one of the top banks in the country due to its strong commitment to providing excellent customer service and its focus on innovation.
Habib Bank AG Zurich is constantly innovating its products and services to better meet its customers’ needs. In addition, the bank has a strong focus on environmental, social, and governance (ESG) issues.
This means that Habib Bank AG Zurich is committed to supporting sustainable development in Kenya. As a result, Habib Bank AG Zurich is an excellent choice for those looking for a responsible and forward-thinking bank.
9. M Oriental Bank
The Oriental bank is one of the most trusted financial institutions in Kenya. The bank has been in operation for over 20 years and offers a wide range of banking products and services. Among the services offered by Oriental banks are loans. The bank offers both unsecured and secured loans with very competitive interest rates.
10. Victoria Commercial Bank
Victoria Bank is a private bank in Kenya that was formed in 1987. The bank provides a wide range of financial products and services to its customers. Loans, mortgages, credit cards, and investments are just a few available services. Unsecured and secured loans with meager interest rates are available from this institution.
The Bottom Line
When looking for the cheapest bank loans in Kenya, it is essential to compare the interest rates, fees, and other terms offered by different lenders.
The actual cost of credit will vary depending on the bank you choose and the type of loan you are looking for. Consider comparing the offers from different banks before deciding which one to apply to.