Source; Buisness Daily
http://www.bdafrica.com/index.php?option=com_content&task=view&id=6938&Itemid=5812
……. The survey done for the Central Bank of Kenya (CBK) by Research International, indicates that Barclays and Equity Banks offer the most expensive micro-finance loans. These are loans of not more than Sh50,000.Although Equity has traditionally been associated with microfinance, the survey shows that a Sh50,000 from the bank costs the borrower more than most banks. The bank asks for a total of Sh67,150 by the end of 24 months for a Sh50,000 loan while Barclays asks for Sh66,911. The report attributes these high charges to the calculation of the interest based on a flat rate rather than the reducing balance formula that other banks use.
http://www.bdafrica.com/index.php?option=com_content&task=view&id=6938&Itemid=5812
……. The survey done for the Central Bank of Kenya (CBK) by Research International, indicates that Barclays and Equity Banks offer the most expensive micro-finance loans. These are loans of not more than Sh50,000.Although Equity has traditionally been associated with microfinance, the survey shows that a Sh50,000 from the bank costs the borrower more than most banks. The bank asks for a total of Sh67,150 by the end of 24 months for a Sh50,000 loan while Barclays asks for Sh66,911. The report attributes these high charges to the calculation of the interest based on a flat rate rather than the reducing balance formula that other banks use.
1 comment:
Good post.
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