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National bank Personal Loan: Rates, Terms and Fees

ByElizabeth Atieno

Mar 9, 2023
National bank Personal Loan

Last updated on March 23rd, 2023 at 07:26 pm

A personal loan from a national bank can be a great financial tool for people who need funds for a variety of reasons. Whether it’s to consolidate debt, pay for unexpected expenses, or fund a major purchase, a personal loan can help you get the funds you need while keeping your interest rates and fees low.

National banks are known for their competitive rates, flexible terms, and easy application process. However, before you apply for a personal loan from a national bank, there are a few things you should know.

National bank Personal Loan Rates, Terms and Fees

Here are some key factors to consider when applying for a personal loan from a national bank:

Loan TypeInterest RateFeesLoan AmountLoan TermsCredit Score RequirementsRepayment Terms
Personal Loan13.5% – 25%Processing fee of 1.5% of loan amountKsh 50,000 – Ksh 4,000,0006 – 72 months600 and aboveEqual monthly installments

Please note that the interest rate, fees, loan amount, and credit score requirements may vary based on the individual borrower’s creditworthiness and the bank’s discretion. Additionally, some banks may require collateral for certain loan amounts. It’s important to carefully review the loan terms and conditions before applying for a personal loan.

Also Read: Equity Bank Personal Loans

Interest rates and fees

Interest rates and fees are the two main factors that determine the overall cost of your personal loan. National banks typically offer lower interest rates than other lenders, making them an attractive option for borrowers. However, it’s important to note that the interest rate you receive will depend on your credit score, income, and other factors. You should also be aware of any additional fees, such as application fees or prepayment penalties, that may be associated with your loan.

Loan amount and term

The loan amount and term are also important factors to consider when applying for a personal loan from a national bank. National banks typically offer higher loan amounts than other lenders, which can be beneficial if you need to borrow a large sum of money. However, it’s important to make sure you can afford the monthly payments and that the loan term is long enough to fit your budget.

Read Also; KCB personal loan Eligibility, Rates and Terms

Application process

National banks typically have an easy application process that can be completed online or in-person. You will need to provide basic information about yourself, such as your income and employment status, as well as details about the loan amount and purpose. Some national banks may also require additional documentation, such as pay stubs or bank statements, to verify your income and creditworthiness.

Credit score requirements

National banks typically require a minimum credit score to qualify for a personal loan. The exact credit score requirements will vary depending on the bank and loan program. It’s important to check your credit score before applying for a loan and to make sure you meet the minimum requirements.

Repayment terms

Finally, it’s important to understand the repayment terms of your personal loan from a national bank. National banks typically offer flexible repayment terms, ranging from one to five years. You should choose a repayment term that fits your budget and allows you to make payments on time each month.

In conclusion, a personal loan from a national bank can be a great financial tool if you need funds for a variety of reasons. By considering the interest rates, fees, loan amount, term, application process, credit score requirements, and repayment terms, you can choose the best loan program that fits your budget and financial goals. Always make sure to read the terms and conditions of your loan carefully before signing on the dotted line.