Equity shakes market with mobile phone loans rate cut

Equity Bank yesterday pulled down interest rates charged on mobile phone-based loans, breaking ranks with rival Kenya Commercial Bank (KCB) and Commercial Bank of Africa (CBA), as it moved to comply with the new law capping the price of loans.

Equity Bank chief executive James Mwangi said customers borrowing through the lender’s Eazzy loans (its mobile phone-based credit offering) will be charged at the maximum rate of 14.5 per cent per annum on a reducing balance – a figure that translates to approximately 0.65 per cent per month.