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Equity lending rate 25%
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Nabwire
#31 Posted : Wednesday, November 09, 2011 9:20:53 PM
Rank: Veteran

Joined: 7/22/2011
Posts: 1,325
25%?? Can we say default? Where are these lenders supposed to come up with money to cover that interest considering high inflation, fuel prices, unemployment?
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astute
#32 Posted : Wednesday, November 09, 2011 9:32:34 PM
Rank: Member

Joined: 3/24/2010
Posts: 101
Location: Nairobi
Assuming that you want to take a loan to invest in a business. Which are some of the businesses that can guarantee a return of more than 25%, to make a profit????
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kyt
#33 Posted : Wednesday, November 09, 2011 10:47:31 PM
Rank: Elder

Joined: 11/7/2007
Posts: 2,182
This s*it is all messed up!
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Pedro_Nasinyama
#34 Posted : Thursday, November 10, 2011 8:52:11 AM
Rank: New-farer

Joined: 5/11/2011
Posts: 63
GenghisCapitalLtd wrote:
With a 16.5% CBR rate we did expect an increase in bank rates of around 22%. Equity's 25% is enormous compared to SCB's 23% and CfC Stanbic's 20.25%...but then again, shouldn't they be increasing deposit rates as well smilejust a random thought!!! Let's watch how the analysts' expectations earnings changes when we factor this in.



I know Equity rate is the effective lending rate. Genghis are yu sure the rates quoted for other banks are not there base rates. They would then load additional interest depending on your risk factor and type of credit.
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Mpenzi
#35 Posted : Thursday, November 10, 2011 9:59:32 AM
Rank: Veteran

Joined: 10/17/2008
Posts: 1,234
Pedro_Nasinyama wrote:
GenghisCapitalLtd wrote:
With a 16.5% CBR rate we did expect an increase in bank rates of around 22%. Equity's 25% is enormous compared to SCB's 23% and CfC Stanbic's 20.25%...but then again, shouldn't they be increasing deposit rates as well smilejust a random thought!!! Let's watch how the analysts' expectations earnings changes when we factor this in.



I know Equity rate is the effective lending rate. Genghis are yu sure the rates quoted for other banks are not there base rates. They would then load additional interest depending on your risk factor and type of credit.


SCB and Cfc Stanbic new rates are base rates - their effective rates are definitely above Equity's 25%.
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bwenyenye
#36 Posted : Friday, November 11, 2011 12:07:54 PM
Rank: Elder

Joined: 5/24/2007
Posts: 1,805
guru267 wrote:
bwenyenye wrote:


Then secondly, Dr Mwangi, was quoted in the press yesterday saying the way he will not increase his rates... This is very inconsistent with his Brand.

my two cents.


You must think equity is a charitable organization if you expect them to lend at 15% when the CBR is 16.5%...

Dr mwangi's statements did not factor in a rate hike..


My Bad.

But my logic is that very few banks actually fund their loan books from overnight borrowing. Therefore, there is no real reason ( other than Greed) for them to raise interest rates for now. Most banks will retain a 20% buffer on deposits.

Me sees this as a scheme to rip off Kenyans as the election fever kicks in.
I Think Therefore I Am
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Thiong'o
#37 Posted : Friday, November 11, 2011 4:23:03 PM
Rank: Member

Joined: 10/14/2011
Posts: 661
guru267 wrote:
bwenyenye wrote:


Then secondly, Dr Mwangi, was quoted in the press yesterday saying the way he will not increase his rates... This is very inconsistent with his Brand.

my two cents.


You must think equity is a charitable organization if you expect them to lend at 15% when the CBR is 16.5%...

Dr mwangi's statements did not factor in a rate hike..


EBL the most expensive bank..
Equity Bank has become Kenya’s most expensive lender after the recent round of interest rates increments.

The cost of borrowing from the bank — which announced two days ago that it had increased its lending rate to 25 per cent — is partly enhanced by its charging of interest on the principle amount borrowed throughout the period of repayment as opposed to its rivals who charge interest on reducing balance.Sad

http://www.businessdaily.../-/676xu1z/-/index.html
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  | | Edit by user: Friday, November 11, 2011 4:26 PM | Reason: Not specified
guru267
#38 Posted : Friday, November 11, 2011 4:37:26 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Thiong'o wrote:
EBL the most expensive bank..
Equity Bank has become Kenya’s most expensive lender after the recent round of interest rates increments.

The cost of borrowing from the bank — which announced two days ago that it had increased its lending rate to 25 per cent — is partly enhanced by its charging of interest on the principle amount borrowed throughout the period of repayment as opposed to its rivals who charge interest on reducing balance.Sad

http://www.businessdaily.../-/676xu1z/-/index.html


And yet they are still growing their loan book at the fastest rate in kenya.. smile
Mark 12:29
Deuteronomy 4:16
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astute
#39 Posted : Friday, November 11, 2011 6:25:05 PM
Rank: Member

Joined: 3/24/2010
Posts: 101
Location: Nairobi
guru267 wrote:
Thiong'o wrote:
EBL the most expensive bank..
Equity Bank has become Kenya’s most expensive lender after the recent round of interest rates increments.

The cost of borrowing from the bank — which announced two days ago that it had increased its lending rate to 25 per cent — is partly enhanced by its charging of interest on the principle amount borrowed throughout the period of repayment as opposed to its rivals who charge interest on reducing balance.Sad

http://www.businessdaily.../-/676xu1z/-/index.html


And yet they are still growing their loan book at the fastest rate in kenya.. smile



Lets wait and see, Kenyans are aware: They are officially the most expensive lenders!! The loan book growth days are numbered.
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mwekez@ji
#40 Posted : Friday, November 11, 2011 6:27:02 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
guru267 wrote:
Thiong'o wrote:
EBL the most expensive bank..
Equity Bank has become Kenya’s most expensive lender after the recent round of interest rates increments.

The cost of borrowing from the bank — which announced two days ago that it had increased its lending rate to 25 per cent — is partly enhanced by its charging of interest on the principle amount borrowed throughout the period of repayment as opposed to its rivals who charge interest on reducing balance.Sad

http://www.businessdaily.../-/676xu1z/-/index.html


And yet they are still growing their loan book at the fastest rate in kenya.. smile


25% flat rate translates to 43.34% reducing balance rate. Members are seriously exploited
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