Fred Aminga @faminga
Standard Chartered is banking on low-priced mortgages to stir interest in uptake after a period of slow growth. Through a low-priced Kenya shilling and dollar mortgages initiative, the lender is planning to see customers access up to Sh100 million at 13 per cent interest rate and six per cent annual interest rate for dollar mortgages.
The Kenya shilling dominated mortgage is a part-fixed rate mortgage package, where customers will enjoy the low-interest rate for the first two years after which the loan will be charged at market rate.
Through this initiative, the lender expects to disburse more than Sh4 billion in mortgages in the next two months. “We are introducing flexibility based on feedback we receive from customers.
This facility allows customers to plan in the long term,” said David Idoru, head of retail banking. Customers will also enjoy extended loan repayment tenure of up to 25 years. “We want to help our clients realise home ownership dreams,” said Idoru.