GTB, Zenith, UBA, Other Banks Announce Increase in Customers' Loan Rate After CBN’s Decision
- Nigerian banks have begun to notify their customers about the changes in interest rates on loans and savings accounts
- The changes reflect the latest Monetary Policy Rate (MPR) announced by the Central Bank of Nigeria (CBN)
- The CBN increased the MPR again in a bid to revive the economy and combat the rising cost of living
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
After the Central Bank of Nigeria (CBN) raised the benchmark interest rate, Deposit Money Banks (DMBs) have started reviewing upwards the interest rates on loans given to customers.
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Legit.ng had earlier reported that the CBN raised the interest rate from 26.25% to 26.75% as it bids to tackle rising inflation.
The new rate, announced on Tuesday, July 23, 2024, is the fourth increase under the leadership of Olayemi Cardoso at the CBN.
Nigerian banks notify customers of changes
BusinessDay reports that in response to the CBN, banks have started notifying customers about the changes to their accounts and loans. Guaranty Trust Bank (GTBank) is one of the banks that have shared the new adjustments with customers.
GTB told its customers that it is reviewing the interest rates on its MaxPlus loan facilities upward, effective August 6, 2024.
The bank said:
The new interest rate on MaxPlus loan facilities will be adjusted from the existing 28.5% to 29%. The bank attributes this adjustment to the current financial climate and the necessity to align with market trends.
"Customers with existing MaxPlus loan facilities are advised to take note of the revised rates and adjust their financial plans accordingly.
"GTBank remains committed to providing its customers with competitive and sustainable financial solutions, despite the challenges posed by the fluctuating money market.
"For more information, customers are encouraged to contact their relationship managers or visit the nearest GTBank branch."
Other banks are expected to follow suit in announcing new rates.
CBN shows $9bn drop in forex demand
Legit.ng earlier reported that the demand for foreign exchange by individuals and companies engaged in importation and other forex-related activities decreased by 42% year-on-year.
The total sectoral utilisation of foreign exchange indicated that 19 sectors and services received $21.12 billion in forex allocations in 2023.
This represented a 41.9% decline, or $8.87 billion, compared to the $29.98 billion allocated in 2022.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
