CBK, KBA launch portal for borrowers to compare loan costs
Bank customers seeking a loan will from now be able to compare costs charged by the country’s banks in an effort of choosing a bank with the least charges.
This follows the launch of a portal created by the Kenya Bankers Association (KBA) and the Central Bank of Kenya (CBK) aimed at boosting transparency in the banking industry.
The portal found on www.costofcredit.co.ke, will list a banks charges, fees and other pricing factors related to loans enabling borrowers forecast charges that ultimately influence the cost of credit.
Initially, mortgages, personal secured and unsecured loans will be the products available on the portal with KBA and the banking regulator working on increasing the number of products.
“CBK and KBA consider transparency to be a key element of an effective, safe and sound banking system. Thus, it is in the interest of CBK and KBA to continue collaborating on innovative initiatives that promote greater transparency and full disclosure of credit information to enable customers make informed credit decisions,” reads a statement sent to newsrooms.
Central Bank of Kenya Governor Dr Patrick Njoroge said the initiative puts the power back in the hands of the customer, with the ability to shop for a preferred lender rather than contend with a fixed bank that may be charging higher for credit.
“Right from you’re your home, computer or mobile phone device, you will get this information. So you will be fully armed even before enter the banking hall to talk to your relationship manager you will already know how things stack up between the various banks that are options to you,” Dr Njorge said at the last Monetary Policy Committee meeting briefing.
To use the portal, loan seekers will be required to provide the amounts they wish to borrow, the type of loan, repayment period and frequency of repayment.
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