Business / News
Friday, 23 Jun 2017 13:03 EATtkimani@kenyafreepress.com
The Central Bank of Kenya and Kenya Bankers Association have officially launched the cost of credit website. The website is set to provide information on fees and charges relating to loan products offered by Commercial Banks and Microfinance Banks.
There are three types of loans that are featured on the website: personal secured loans, personal unsecured loans and mortgage loans. Additional loan facilities will be added gradually, but in phases.
The website also provides consumers with a simplified, as well as an advanced Total Cost of Credit (TCC) calculator to inform consumers of their decision-making prior to taking up a loan product.
It features a downloadable mobile application for customers’ ease in computing the cost of credit. It provides two key outputs that allow consumers to compare loan facilities across banks, the Total Cost of Credit and Annual Percentage Rate (APR) and 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 by the banks licensed under the Banking Act and Microfinance Act, regarding their fees and charges on loan facilities”, CBK said in a statement, adding that consumers are therefore, expected to perform their own due diligence and should contact their respective banks for details prior to entering into any binding legal agreement.
The statement said 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 initiative that promote greater transparency and full disclosure of credit information to enable customers make informed credit decisions. “We believe that the cost of credit website will go a long way in promoting greater transparency and enhance competition in the banking sector”, stated the statement.