A website allowing prospective borrowers to compare the cost of credit by various Kenyan banks has been launched in a move expected to boost transparency in the lending market.
Users can now estimate the pricing of loans from specific banks at www.costofcredit.co.ke, a portal created by the Kenya Bankers Association (KBA) and the Central Bank of Kenya.
“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,” the parties said in a joint statement.
Additional loan facilities will be added gradually in phases. Users need to provide the amounts they wish to borrow, the type of loan, repayment period and frequency of repayment.
The website then generates the interest and other charges as well as the total amount to be repaid.
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