Coop cuts loan rates for teachers, police

Teachers, soldiers as well as other employees of State organisations are set to enjoy cheaper loans after Co-op Bank moved to reduce interest rates charged on personal loans and asset finance to select borrowers to 13 percent from 14 percent per annum starting April 1.

Borrowers who are set to benefit from this are key corporate and institutional employers including
the Kenya Defence Forces (KDF) and other armed services, the Kenya Police Service, the Teachers Service Commission (TSC), Government Ministries, the National Assembly, key state corporations such as Kenya Revenue Authority (KRA), KenGen among others.

The move goes contra to the industry trend where majority of the lenders are revising lending rates upwards, especially in light of the recent upward adjustment of Central Bank Rate by 75 basis points to 9.5 percent.

The bank said it retains a credit pricing model that is dynamic and attuned to responding effectively to credit performance.