CBN publishes List of Banks With Most Expensive, Cheapest Lending Rates As Borrowers Get Change Notification
- CBN has released an updated list of the interest rate Nigerian banks are lending to customers
- Loan interest rates vary depending on the sector the customer is operating and the commercial bank.
- Following the change in MPR, banks have been sending messages to customers notifying them of their new rates on loans
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Nigerian banks have hiked mortgage, personal, and business loan interest rates by at least 2%.
The interest rate hike is in response to the recent increase in the central bank’s monetary policy rate (MPR), which was jacked up from 11.5% to 13%.
The MPR is a benchmark rate used by the apex bank to lend money to commercial banks in Nigeria.
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When determining interest rates for its borrowers, banks frequently apply a premium to the MPR.
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A commercial bank advised debtors in a letter that they will be "reviewing the interest rate" upwards owing to "prevailing market conditions" in the market.
Another bank advised the consumer in another letter that "due to market conditions, your interest rate has been modified."
Banks lending rates
The CBN of Nigeria mandates 27 banks to submit their lending and saving rates for publishing.
According to the most recent rate published by the Central Bank of Nigeria in April 2022, the average interest rate paid by commercial banks on savings is 1.15% with only Heritage Bank and SunTrust Bank paying more than 4%.
For lending, CBN often provides guidance on rate bands, with maximum and prime lending rates often the guide.
Prime lending rates are the interest rate that commercial banks charge their most creditworthy customers, generally large corporations.
The maximum lending rate refers to interest charged by banks for lending to customers with a low credit rating.
Five most expensive general lending rates(max)
- Union bank- 49%
- FCMB, Stanbic- 42%
- Keystone- 35%
- Sterling- 33%
- Wema, Zenith, Eco Bank- 30%
Five cheapest general lending rates(max)
- Coronation bank- 12%
- FBN merchant- 17.50
- FSDH Capital- 19%
- SunTrust bank- 20%
- Globus bank LTD- 21%
The full list can be downloaded here.
Kuda Bank announces charges on deposit, blames govt new tax
In another report, Kuda Bank has announced new bank charges for deposits in a statement to its customers
The statement noted that the deposit charge includes all forms of deposit from N10,000 and above
The popularity of fintech companies among Nigerians stemmed from commercial bank customers' constant complaints about charges
Source: Legit.ng
