Total Cost of Credit, a website that provides information on fees and charges of loan products offered by commercial and microfinance banks has been officially launched in Kenya.
The joint innovative initiative of the Central Bank of Kenya (CBK) and the Kenya Bankers Association (KBA) currently gives information on personal secured loans, personal unsecured loans and mortgage loans but will soon include information on additional loan facilities.
CBK and KBA seek to promote greater transparency and full disclosure of credit information to enable bank and financial institution customers make informed decisions prior to taking up a loan product.
The portal is expected to promote transparency and in turn enhance an effective, competitive and safe banking system in Kenya.
Total Cost of Credit also provides simplified and advanced Total Cost of Credit (TCC) calculators as well as the Annual Percentage Rate (APR) to allow consumers to compare different bank loan costs which are based on standardized parameters and a common computation model.
Also featured are a downloadable repayment schedule and mobile application version of the website.
Customers are advised to contact their respective financial institutions for more information as Total Cost of Credit is only complementary.
The CBK requires commercial banks and microfinance institutions in the country to provide customers with a Total Cost of Credit breakdown and loan repayment schedule.