Standard Chartered Bank has set aside Sh10 billion to be loaned to its retail customers through unsecured loans in 45 days.
The move is expected to improve credit availability which has hit a low of 2.1 per cent as lenders remain cautious.
The return of the unsecured loans is also expected to spur renewed activity in the retail segment with the bulk of the credit channeled towards short-term purchases in the real estate and automobile sectors.
Through a Grand Sale Campaign which commenced today and ends on 11th October 2017, the bank’s customers can now borrow up to Sh7 million unsecured loan, the highest in the local market.
The campaign aims at increasing loans uptake and deposit mobilization by offering competitive offers over a period of 45 days.
“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,” Manjang added
In addition to the unsecured loan, 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.
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 Sh123 billion at the close of 2016.
Last year, the Retail Banking segment contributed 46 per cent of Standard Chartered Bank’s total income.