NAIROBI, Kenya
Loan borrowers will now be able to enjoy a one month repayment holiday every year, as Bank of Africa-Kenya firms up its unsecured lending proposition to drive credit uptake. BOA-K’s monthly loan repayment waiver is an industry first that is expected to cushion borrowers’ from the vagaries of the high cost of living by allowing them to manage their annual credit repayment schedule.
According to Kwame Ahadzi, the Managing Director of Bank of Africa-Kenya, the gradual easing of the cost of credit will auger well for the Kenyan economy as more households step up consumption on the back of low interest rates and flexible repayment options.
“As an institution, our customers are at the centre of our operations. We are continually looking into ways of giving them a reprieve from the rising cost of living. This new break in the repayment will make their lives easier through flexible repayment of the loan facility,” Mr Ahadzi added.
Customers will be able to pick what month in the year to enjoy the loan repayment holiday, giving them greater control of their finances. They will be able to borrow between Ksh50,000 and Ksh2,000,000 in personal loans, which is repayable from 12 to 72 months.
Eligible individuals are those who have been in continuous employment for over 6 months either on a permanent basis or on contract, with permanent employees having completed their probation period and contract employees subject to consideration to the loan being fully repaid 3 months before expiry of the contract.
New bank customers will be expected to have maintained debt free accounts with their bankers and willing to make Bank of Africa their sole banker unless there is prior deduction.
The new product comes as appetite for credit in Kenya grows. Figures from the Central Bank of Kenya indicate that gross loans and advances in the country’s banking sector stood at Ksh1.40 trillion in March 2013, up from Ksh1.36 trillion in December 2012.
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