HomeBusiness DigestLending rates up again

Lending rates up again

Staff Writer

COMMERCIAL banks have again increased Minimum Lending Rates (MLR), making the already ailing Zimbabwean economy deteriorate even further.

vetica, sans-serif”>Banks recently hiked lending rates from approximately 72% to about 80%.

They have now increased the rates from the 80% to between 90 to 95%.

This means customers now need to pay nearly double the amount borrowed and this discourages borrowing and as a result reduces consumption.

“Minimum Lending Rates increase everyday,” said a banker at Zimbank.

Not all the banks are charging the same lending rates.

Banks such as Barbican Bank and NMB have the highest rates, charging 95% and 91% respectively.

At NMB the minimum rate is about 84% and they add a bank margin of 7%, amounting to 81%.

Trust Bank Ltd announced that it had increased its MLR from 80% to 88,5%.

First Bank Corporation Ltd increased its minimum lending rate to 85%.

With the lowest rate is Royal Bank, which has an MLR of 75%.

The bank says it has not increased its rate for quite some time now.

Despite these frequent hikes of lending rates, they still lag behind the galloping inflation which reached a record 399,5% as of July.

Analysts however predict the rate will continue rising to bash the 500% mark by year-end.

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