Equity Bank (K) Ltd has announced cheaper loans for all its customers effective Monday, November 18, after lowering the interest rates on all credit facilities.
In a press release on Monday, November 18, the bank indicated that the move followed the reduction of the Central Bank Rate (CBR) from 12.75% to 12.0%.
This marks the second time the bank has reduced its interest rate in 2024, after announcing a separate reduction in September.
“The reduction, effective 18th November 2024, reflects Equity Bank’s proactive commitment to making credit more affordable and accessible to a wider range of customers, furthering financial inclusion and stimulating economic activity across Kenya.
“The reduced interest rate on all new and existing Kenya Shilling-denominated credit facilities will comprise the revised Equity Bank Reference Rate (EBRR) of 17.39% plus a margin, currently capped at a maximum of 8.5% per annum,” equity noted in the statement.
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Equity Banks Explain the Reduction
According to the bank, the reduction of interest rates to 17.39 percent is meant to maintain economic stability in the country.
Consequently, this will allow Kenyans to borrow at lower costs and attend to their financial ambitions.
“The reduction in our Equity Bank Reference Rate (EBRR) from 17.83% to 17.39% is in response to the MPC’s decision, which aims to maintain economic stability amid improving inflation trends and favourable economic indicators.
“With this reduction, all new and existing customers with Kenya Shilling-denominated loans will benefit from lower borrowing costs, providing immediate relief and supporting their financial aspirations,” explained the bank’s CEO James Mwangi.
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Additionally, Dr Mwangi noted that lower-interest loans will allow businesses to access more affordable credit, which in turn lowers the overall operational costs.
Also, he said that the financial relief for business owners will not only support their economic activities but also foster the growth of enterprises, leading to the creation of employment opportunities.
Also Read: REVEALED: Billions Equity, KCB & Other Top Kenyan Banks Have Made in 2024
What This Means for Households
For households, the lower interest rates mean reduced borrowing costs, an increase in disposable income and providing families with more finance.
This additional income, according to the bank, can stimulate consumer spending, further driving economic growth.
“Overall, this change aligns with the government’s efforts to bolster the country’s economy by making both business and personal finance more accessible and sustainable,” added the statement.
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and CEO Dr James Mwangi Speaking during the Q3 Investor Briefing1. PHOTO/ Equity Bank kenya
