Nairobi, 22nd JUNE 2017: The Central Bank of Kenya (CBK) and the Kenya Bankers Association (KBA) are pleased to announce the official launch of Cost of Credit website. The website 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.
Key Features of the Cost of Credit Website
- As a start, three types of loans are featured on the website: personal secured loans, personal unsecured loans and mortgage loans. Additional loan facilities will be added gradually in phases.
- The website provides consumers with a simplified, as well as an advanced, Total Cost of Credit (TCC) calculator to inform their decision-making prior to taking up a loan product.
- The website features a downloadable mobile application for customers’ ease in computing the cost of credit.
- The website provides two key outputs that allow consumers to compare loan facilities across banks: the Total Cost of Credit and Annual Percentage Rate (APR).
- It 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 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. We believe that the cost of credit website initiative will go a long way in promoting greater transparency and enhance competition in the banking sector.
The cost of credit website can be accessed through this link: http://www.costofcredit.co.ke
