Stanbic Bank slashes interest rates on personal loans

Ugandans looking to buy their first house can now do so with up to 100% financing from Stanbic Bank at 14.5% per annum in a move aimed at helping working Ugandans to live rent-free and channel resources to invest in their own property.

As part of its new campaign dubbed "Get it done" the bank has also slashed lending rates on personal consumer loans to 15.5%, the lowest in the market and accessible within two minutes to prequalified customers through the lender’s mobile banking platform.

Customers with loans in other banks can also migrate to Stanbic Bank under special terms and settle their obligations at lower rates; they can also top up their existing loans.

Customers can access up to Shs 250 million in collateral free credit while affluent customers with a high-net worth can access credit cards financing with up to Shs 100 million or borrow up to shs10billion to buy property.

"These are tough economic times for our Ugandan customers, and they expect us as their bank to do something about it—so we have reduced our lending rates on personal loans to 15.5% and offering 100% financing to customers seeking to buy their buy their first house at 14.5%," said Sam Mwogeza, the executive head, Consumer Banking.

With price pressures escalating across the country, many would agree that one is better off living under their own roof than renting, Stanbic Bank has partnered with local property developers to avail affordable housing with up to 100% funding for Ugandans seeking to buy their first house.

Our offer of up to 100% home financing is aimed at removing the burden on the customer of the 15-20% contribution of the asset’s total value—if you have a house too,” said Israel Arinaitwe, head of client coverage at Stanbic Bank.

Arinaitwe said the home financing is for properties valued in both shillings and dollars and will all enjoy competitive rates starting from as low as 14.5% (for shillings) and 9% (for USD) with priority given to first time home buyers who will also be exempted from paying loan processing fees.

For businesses, the bank, through its partnership with Kampala City Traders Association (KACITA) revealed that local traders can secure special credit access to clear taxes and allow them to secure their goods and repay after selling.

"The tax payment pressure is a huge problem for many of our customers as taxes are statutory obligations.We are therefore now enabling them to clear the taxman and settle the bank while ensuring that business doesn’t stop, this way, all parties benefit," said Aaron Akampa, head of SME banking at Stanbic Bank.

According to the Uganda Bureau of Statistics (Ubos), inflation as measured by the Consumer Price Index for Uganda for the 12 months to April 2022, increased to 4.9%, up from 3.7% registered in March 2022 inspiring a sharp rise in prices for primary commodities such as cooking oil, soap, and fuel.