CBN Publishes Interest Rates by Banks Peg at 1.15 percent for Saving, Maximum Loan Rate at 36 percent

• Nigerian banks access low cost funds from individual/corporate deposits, interventions from the Central Bank and development finance institutions
• The money collected by banks at interest rate of 11.5% is subsequently lent back to clients at a higher interest rate for profit
• While banks pay consumers an average interest rate of 1.15% for saving, loans are granted at a rate ranging from 18 to 36%

The Central Bank of Nigeria has revealed the latest maximum lending rates for various banks in a new report published on its website.

The publication on the CBN website is part of the apex bank's commitment to transparency and full disclosure.

Manufacturer

According to the publication dated September 17, 2021, manufacturers pay a maximum rate of 36 percent per annum for Stanbic IBTC loans, Heritage Bank (35 percent), Heritage Bank (35 percent), FCMB (30 percent), Zenith Bank (30 percent), Fidelity Bank (24 percent) and Keystone Bank (34 percent), among others.

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Agriculture

Heritage Bank priced its agriculture and forest loans at 35 percent per annum, followed by Keystone Bank (34 percent), Zenith Bank (30 percent), Providus Bank (30 percent), Sterling Bank (33 percent), Polaris Bank (32.50 percent) among others.

Government

Loans to the government were priced highest in the industry, with Union Bank collecting 49 percent per annum maximum loan rate from its government customers followed by FCMB and Stanbic IBTC (42 percent).

While for Heritage Bank charge is (41 percent), Sterling Bank (33 per cent), Providus Bank (30 percent), Wema Bank (30 percent), Zenith Bank (30 percent) among others.

How much each bank gives to customers for deposit

Ecobank, Access Bank, FCMB, Fidelity Bank, GTBank, Keystone Bank, and Polaris Bank, on the other hand, set their savings interest rate at 1.15%.

Stanbic IBTC, Sterling Bank, Titan Bank, UBA, Union Bank, Wema Bank, and Zenith Bank are among those that have implemented the same 1.15% rate on savings accounts.

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Heritage Bank pays the highest interest rate on savings deposits on the reviewed date, 4.20 percent, followed by SunTrust Bank, which pays 4.10%

Ecobank pays 9.67% for time deposit, others are Access Bank (9.52%), Coronation Bank (8.55%), Heritage Bank (13.88%) GTBank (5.57%), Keystone Bank, 8.22%), Nova Merchant Bank (10.72%), Rand Merchant Bank (8.85%), Sterling (9.77%).

Others are Zenith Bank (4.72%), Wema Bank (4.94%), UBA (1.00%) FCMB (0.25%), among others.

Check out the full list here

Loan Apps' Contributing to Financial Problems of Their Borrowers

Meanwhile legit.ng had earlier reported how loan apps are eliminating the cumbersome process of obtaining credit.

Although a good development, Legit.ng observed some Fintech companies behind loan apps are making it difficult for borrowers to repay their debts, and this increases interest on the loan

Borrowers are complaining that the loan apps are extorting them by making it impossible for some of them to repay their debts before the due date.

Source: Legit.ng