Barclays waives insurance cost on unsecured loans

September 12, 2013
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Barclays Bank of Kenya Chief Executive Officer Jeremy Awori says the bank will absorb the life insurance premiums associated with unsecured loans/FILE
Barclays Bank of Kenya Chief Executive Officer Jeremy Awori says the bank will absorb the life insurance premiums associated with unsecured loans/FILE
NAIROBI, Kenya, Sep 12 – Barclays Bank of Kenya has waived loan insurance costs on all its unsecured loan products in bid to increase its loan uptake by 20 percent.

Barclays Bank of Kenya Chief Executive Officer Jeremy Awori says the bank will absorb the life insurance premiums associated with unsecured loans, providing significant cost savings to its customers on their monthly loan repayments.

Awori says the waiver translates to a 1.5 percent reduction on the customers interest rates charges which amounts to a monthly payment of a about Sh3,000.

In banking, credit life insurance is normally a mandatory requirement from customers taking out an unsecured loan.

The insurance provides debt protection cover which cushions the customer and their family in the unfortunate event of death or permanent disability by setting the balance of the loan.

Alongside the life insurance waiver, Awori revealed that customers opening both a loan and a salary accounts would receive a free Samsung galaxy tablet, a Lenovo smart tab or an iPad mini for every new loan above Sh500,000.

“This is part of our three-year strategic plan designed to facilitate faster growth in the future,” Awori said.

The strategy, seeks to position the bank on an ambitious but clear strategic roadmap in order to generate sustainable returns.

Awori says the three-year growth seeks to achieve stronger future sustainable revenue growth and productivity gains through a mix of options including efficiency through innovation and leveraging technology and mobile solutions in the delivery of banking services to the various market segments.

Awori says the bank will be revamping its investment-banking proposition to drive its new push providing capital markets solutions for their clients.

He says the bank will also focus on the energy, oil and gas sectors.

He revealed that the Bank has launched a fully-fledged risk management and fixed income trading arm buoyed by its sound capital and strong liquidity position.

“This will get the best from global, regional and local expertise,” he said.

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