Full List: CBN Releases New Interest Rates Access, UBA, GTB, Other Banks Charge Customers for Loan

• The Central Bank of Nigeria publishes the maximum and minimum lending rates for various banks
• The publication, released on the CBN website, is part of the apex bank's commitment to transparency and full disclosure
• The lending rate is the interest charged by banks when they advance loans to their customers in need of funds

The Central Bank of Nigeria has released the latest maximum and prime lending rates for various Deposit Money banks (DMBs)

The maximum lending rate refers to interest charged by banks for lending to customers with a low credit rating.

Banks charge Prime lending rates to their largest, most secure, and most creditworthy customers on short-term loans.

New lending rates

The new lending rates reflect the rising Monetary Policy Rate (MPR) set by the Central Bank.

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Legit.ng reported that the CBN raised the MPR by 750 basis points to 26.25% in May 2024.

According to the CBN's latest data, as of May 17, 2024, 25 out of 31 lending financial institutions offer maximum borrowing interest rates above the MPR to various sectors of the economy.

Meanwhile, six lenders offer loans to some sectors at a rate below the benchmark interest rate.

Breakdown of banks' lending rate

Here is a breakdown of what banks charge customers seeking loans in different sectors of the economy.

Access Bank

• Maximum lending rate: 28.50%
• Borrowing rate for prime customers: 22%

Citi Bank

• Maximum interest rate: 28%
• Rate for prime customers: 21.50%

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Coronation Merchant Bank

• Loan rate: 30% for both prime and maximum
• Prime rate in mining, quarrying, and manufacturing: 9%

Ecobank

• Maximum lending rate: 30%
• Prime lending rate: 26.75%

FBN Quest Merchant Bank

• Prime rate in agriculture and forestry: 9%
• Prime rate in manufacturing: 7%
• Maximum lending rate in manufacturing: 30%

FCMB

• Maximum loan rate: 40%
• Prime lending rate: 22.50%

Fidelity Bank

• Prime lending rate: 27%
• Maximum rate: 30%

First Bank of Nigeria

• Prime lending rate: 25%
• Maximum rate: 32%
• Prime rate in manufacturing: 15%

FSDH Merchant Bank

• Prime rate: 18%
• Maximum lending rate: 43%
• Prime rate in manufacturing: 9%

Globus Bank Limited

• Lending rates: 9% to 29% for prime and maximum rates

Guaranty Trust Bank

• Maximum rate for agriculture and manufacturing: 24%
• The prime rate for manufacturing: 10%
• The prime rate for agriculture: 22%
• Rate for mining and quarrying: 9%

Keystone Bank

• Prime lending rate: 31%
• Maximum rate: 36%
• Prime and maximum rates in manufacturing, real estate, and public finance: 12% and 20%

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Optimus Bank

• Prime lending rate: 23.75%
• Maximum rate: 35%

Polaris Bank

• Prime rate in certain sectors: 9%
• Maximum rates for agriculture and manufacturing: 35% and 32%

Premium Trust

• Maximum lending rates: 32% to 33%
• Prime rate: 28%

Providus Bank

• Maximum rate: 30%
• Prime lending rate: 25%

Rand Merchant Bank

• Maximum lending rate: 32.5%
• Prime lending rates: 22% to 24.75%

Signature Bank

• Prime lending rate: 32%
• Maximum rate: 35%

Stanbic IBTC Bank

• Maximum rate: 50%
• Prime lending rate: 8% to 27%

Standard Chartered Bank

• Prime rate: 19%
• Maximum rate: 26%

Sterling Bank

• Prime lending rate: 29%
• Maximum rate: 37%

SunTrust Bank

• Prime lending rates: 7% to 18%
• Maximum rates: 20% to 29%

TitanTrust Bank

• Prime lending rates: 25% to 28.50%
• Maximum rates: 25% to 36%

United Bank for Africa (UBA)

• Borrowing rates for prime customers: 28.50%
• Maximum rate: 32%

Union Bank

• Prime lending rate: 19.65%
• Maximum rate: 35%

Unity Bank

• Lending rates: 9% to 30%
• Maximum rate: 38%

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Wema Bank

• Prime lending rate: 32.50%
• Maximum rate: 34.50%

Zenith Bank

• Prime lending rate: 25.28%
• Maximum rate: 30%

Nigerian banks adjust rate for loan

Earlier, Legit.ng reported that after the CBN raised the benchmark interest rate, banks repriced their assets, meaning customers would have to pay more for borrowing money.

As a result, the cost of loans, mortgages, and other credit products has increased.

Recall that the CBN raised the monetary policy rate (MPR) on February 27, 2024, from 18.75% in July 2023 to 22.75%, a 400 basis point rise.

Source: Legit.ng