CBK and KBA Cost of Credit Platform for borrowers to compare loan costs
By Soko Directory Team / August 24, 2017
The Central Bank of Kenya (CBK) and Kenya Bankers Association (KBA) have set up a website (www.costofcredit.co.ke) on which all banks will publish the annual percentage rate (APR), loan repayment schedule and any additional cost of credit on their loans.
The platform provides information on fees and charges relating to loan products offered by commercial banks and microfinance banks; specifically, personal secured loans, personal unsecured loans and mortgage loans.
The site currently compares products from a panel of 34 lenders and providers across personal secured loans and mortgage loans while additional loan facilities will be added in gradual phases.
The website/App allows customers to search and compare loans with the best interest rates. Additionally, the platform also provides a repayment schedule which can be downloaded from the website by the users.
“Consumers must note that the information provided on the website is intended to complement the information provided by banks licensed under the Banking Act and Microfinance Act, regarding their fees and charges on loan facilities. Consumers are therefore, expected to perform their own due diligence and should contact their respective banks for details prior to entering into any loan agreement.” CBK & KBA said in a joint statement.
“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.”