NAIROBI, Kenya, Oct 29 – The Bank of Africa (BOA) Kenya has offered a one month loan repayment holiday to their loan customers as it seeks to drive credit uptake.
The monthly loan repayment waiver is expected to cushion borrowers from the impulse of the high cost of living by allowing them to manage their annual credit repayment schedule.
BOA Kenya Managing Director Kwame Ahadzi says the gradual easing of the cost of credit will benefit the Kenyan economy as more households step up consumption on the back of low interest rates and flexible repayment options.
Ahadzi says customers will be able to pick what month in the year to enjoy the loan repayment holiday, giving them greater control of their finances.
“As an institution, our customers are at the centre of our operations, we are continually looking into ways of giving them a reprieve from the rising cost of living, this new break in the repayment will make their lives easier through flexible repayment of the loan facility,” Ahadzi added.
They will be able to borrow between Sh50,000 and Sh2 million in personal loans, which is repayable from 12 to 72 months with new bank customers expected to have maintained debt free accounts with their bankers and willing to make Bank of Africa their main banker.
“Eligible individuals are those who have been in continuous employment for over six months either on a permanent basis or on contract, with permanent employees having completed their probation period and contract employees subject to consideration to the loan being fully repaid three months before expiry of the contract,” he said.
The new product comes as appetite for credit in Kenya grows with figures from the Central Bank of Kenya (CBK) indicating that gross loans and advances in the country’s banking sector stood at Sh1.40 trillion in March 2013, up from Sh1.36 trillion in December 2012.