I&M Bank which Offers Free Bank-To-M-Pesa Transactions Slashes Loan Rates

• I&M Bank announced a reduction of its interest rates by 0.5%, effective December 23, 2024, following a 0.25% reduction implemented on Thursday, November 28
• The interest rate reduction is expected to provide much-needed relief to businesses and individuals who have been grappling with higher rates for the better part of the year
• The rate reduction follows the Central Bank of Kenya’s decision to cut the Central Bank Rate (CBR) from 12.75% to 12.0%

TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.

I&M Bank is the latest Kenyan lender to cut loan rates after the Central Bank of Kenya reduced the base lending rate.

The bank announced a reduction in interest rates by 0.5%, effective December 23, 2024. This follows a 0.25% reduction implemented on Thursday, November 28, bringing the total interest rate reduction to 0.75%

The interest rate reduction is expected to provide much-needed relief to businesses and individuals who have been grappling with higher rates for the better part of the year.

I&M Bank’s chief executive officer, Gul Khan, said lowering interest rates across the banking sector was good news for businesses and borrowers.

“At I&M Bank, we strive to prioritise our customers’ needs in line with our customer-centric approach to doing business. The interest rate reduction will lower operational costs for our customers in the corporate, SME and personal banking segments to achieve their growth ambitions. Directionally, interest rates are coming down in Kenya, and this is good news for businesses and consumers,” Khan said in a statement seen by TUKO.co.ke.

Before the cut, data by the Central Bank of Kenya showed the bank offered personal overdraft loans at 16.84%, 17.95% for five-year loans and 17.26% for business loans.

How many new customers did I&M Bank register?

After a year of providing free bank-to-M-Pesa transactions, I&M Bank doubled its personal accounts.

According to its June 2024 financial results, the lender registered 68,666 new accounts in 2023, up from 33,359 in 2022.

I&M Bank data showed that as of December 2023, it had 326,054 personal accounts, compared to 257,388 in the previous year.

What is Equity Bank’s loan rate?

Elsewhere, Equity Bank Kenya lowered interest rates on all new and existing Kenya shilling-denominated loans, effective November 18, 2024.

The rate reduction follows the Central Bank of Kenya’s decision to cut the Central Bank Rate (CBR) from 12.75% to 12.0%.

The revised Equity Bank Reference Rate (EBRR) is now 17.39%, with a maximum margin of 8.5% per annum.

Source: TUKO.co.ke