Absa Bank Kenya, Sidian Bank and Ecobank Kenya are the most expensive banks in terms of personal secured loan offerings, latest disclosures have shown.
A personal secured loan from Absa Bank of Ksh1million for a year will have a total credit cost of Ksh143,007, Sidian Bank Ksh140,807 and Ecobank Kenya Ksh121,407.
This is according to disclosures by the Central Bank of Kenya (CBK) and the the Kenya Bankers Association (KBA), which have developed a website to show the tabulations in a bid to promote transparency.
In the tabulations, Family Bank ranks fourth with a cost of 115,624 on the same amount of loan for one year, followed by Standard Chartered Bank Kenya (Ksh115,000) and Equity Bank (Ksh108,057).
The website ranks 36 banks whose interest rates range from 11 percent to 13.63 percent. The total cost of credit is largely driven by differences in non-interest charges.
Top ten most expensive banks
On the other hand, Bank of Baroda is ranked as the cheapest with a cost of credit of Ksh60,580. The lender does not charge legal, insurance and processing fees, hence the total cost is purely interest charges.
In the same cadre with Bank of Baroda is Credit Bank, First Community Bank, Housing Finance and Kingdom Bank whose cost for a Ksh1 million personal secured loan for one year is Ksh71,807.
Top 10 cheapest Banks