(Press Release)
Standard Chartered Bank Kenya (Stock; SCBK) has set aside Sh10 billion to be loaned to its retail customers through unsecured loans in 45 days.
The bank’s Chief Executive Officer Lamin Manjang said that despite the credit slowdown being experienced in the financial sector, the Bank has effectively addressed the risk issues around unsecured lending by profiling customers effectively.
“In the last one year, there was a remarkable slowdown in lending to the retail segment as we adjusted to the rate-cap regime. During the period we have put in a lot of work in segmenting our customers and identifying their credit needs,” said Mr. Manjang.
The Bank’s customers can now borrow up to Sh7 million in unsecured loan, the highest in the local market, says Manjang.
The product is, however, valid during the Grand Sale Campaign which commenced today and ends on 11th October 2017.
“In this year’s offer, borrowers will also enjoy a one-month repayment holiday before the Bank effects loan deductions. The offer is available to salaried individuals and can be repaid over a period of up to 72 months,” said Manjang.
The move by Standard Chartered is expected to improve credit availability which has hit a low of 2.1 percent as most lenders turn to government securities post interest-rate capping.
In the year first quarter of 2017, Standard Chartered announced a 19 per cent drop in pretax profit partly occasioned by deceleration in credit growth. During the period, Loans and advances to customers declined by 5 per cent to stand at Sh117 billion compared to Shs123 billion at the close of 2016. Last year, the Retail Banking segment contributed 46 per cent of Standard Chartered Bank’s total income.
