Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
Banks charge premiums of up to 16.57pc in new loan pricing
CBK does not approve banks’ premium rates, which are denoted as K, in the new pricing framework, but lenders are still obligated to furnish the apex bank with the price point after approvals by their respective boards.
Banks are charging a premium of up to 16.57 percent on personal loans before fees and other charges, revealing a wide gap in how lenders determine factors like costs and customer risks amid a change in the pricing formula.
The average premium applied to personal loans ranges between 4.11 percent and 16.57 percent, a difference of 12.46 percentage points as per an analysis of current data published on the total cost of credit website.
