The maximum lending rate refers to interest charged by banks for lending to customers with a low credit rating.
Banks charge Prime lending rates to their largest, most secure, and most creditworthy customers on short-term loans.
The new lending rates reflect the rising Monetary Policy Rate (MPR) set by the Central Bank.
TimesNow.com.ng reported that in February 2024, the CBN raised the MPR by 750 basis points to 26.25% in May 2024.
According to the CBN’s latest data, as of May 17, 2024, 25 out of 31 lending financial institutions offer maximum borrowing interest rates above the MPR to various sectors of the economy.
Meanwhile, six lenders offer loans to some sectors at a rate below the benchmark interest rate.
Here is a breakdown of what banks charge customers seeking loans in different sectors of the economy.
Fidelity Bank
First Bank of Nigeria
FSDH Merchant Bank
Rand Merchant Bank
Standard Chartered Bank
TitanTrust Bank
United Bank for Africa (UBA)
Earlier, TimesNow.com.ng reported that after the CBN raised the benchmark interest rate, banks repriced their assets, meaning customers would have to pay more for borrowing money.
As a result, the cost of loans, mortgages, and other credit products has increased.
Recall that the CBN raised the monetary policy rate (MPR) on February 27, 2024, from 18.75% in July 2023 to 22.75%, a 400 basis point rise.
Source: TimesNow.com.ng
