The maximum and minimum lending rates for different banks are published by the Central Bank of Nigeria. As part of the apex bank’s dedication to openness and complete disclosure, the publication was made available on the CBN website. The interest that banks charge when they advance loans to their customers who are in need of money is known as the lending rate.
The interest rate that banks charge to consumers who have a low credit rating is known as the maximum lending rate.
For short-term loans, banks charge Prime lending rates to their biggest, safest, and most creditworthy customers.
They have implemented a new lending rate. The expanded Monetary Policy Rate (MPR) that the Central Bank set is reflected in the new lending rates.
According to the local press, in May 2024, the CBN increased the MPR by 750 basis points to 26.25%.
As of May 17, 2024, 25 out of 31 lending financial institutions provide maximum borrowing interest rates to different economic sectors that are higher than the MPR, according to the CBN’s most recent data.
Six lenders, meanwhile, provide loans to certain industries at interest rates lower than the benchmark.
Breakdown of banks’ lending rate
Below is a summary of the fees that banks charge borrowers in various economic sectors.
Access Bank’ s Maximum lending rate is 28.50%, while her Borrowing rate for prime customers is 22%. Citi Bank follows suit with Maximum interest rate at 28% and Rate for prime customers at 21.50%. Coronation Merchant Bank has it’s loan rate at 30% for both prime and maximum, while it’s Prime rate in mining, quarrying, and manufacturing is 9%. Eco Bank has it’s Maximum lending rate at 30%, and Prime lending rate at 26.75%.
Continuing, FBN Quest Merchant Bank has it’s Prime rate in agriculture and forestry at 9%, Prime rate in manufacturing at 7%, and Maximum lending rate in manufacturing at 30%. First City Monument Bank (FCMB), sets it Maximum loan rate at 40%, and Prime lending rate at 22.50%. Fidelity Bank gives the Prime lending rate at 27%, and Maximum rate: 30%. First Bank of Nigeria has it’s Prime lending rate at 25%, Maximum rate at 32%, and Prime rate in manufacturing at 15%.
FSDH Merchant Bank set it’s Prime rate at 18%, Maximum lending rate at 43%, and Prime rate in manufacturing at 9%. Globus Bank Limited with Lending rates at 9% to 29% for prime and maximum rates. Guaranty Trust Bank with Maximum rate for agriculture and manufacturing at 24%, Prime rate for manufacturing at 10%, Prime rate for agriculture at 22%, and Rate for mining and quarrying at 9%.
Keystone Bank’s Prime lending rate at 31%, Maximum rate at 36%, Prime and maximum rates in manufacturing, real estate, and public finance at 12% and 20%. Optimus Bank’s Prime lending rate at 23.75%, Maximum rate at 35%. Polaris Bank’s Prime rate in certain sectors at 9%, Maximum rates for agriculture and manufacturing at35% and 32%. Premium Trust’s Maximum lending rates at32% to 33%, and Prime rate at 28%.
Furthermore, Providus Bank set it’s Maximum rate at 30%, and Prime lending rate at 25%. Rand Merchant Bank; Maximum lending rate at 32.5%, and Prime lending rates at 22% to 24.75%. Signature Bank; Prime lending rate at 32%, and Maximum rate at 35%. Stanbic IBTC Bank; Maximum rate at 50%, and Prime lending rate at 8% to 27%. Standard Chartered Bank; Prime rate at 19%, and Maximum rate at 26%.
Sterling Bank; Prime lending rate at 29%, and Maximum rate at 37%. SunTrust Bank; Prime lending rates at 7% to 18%, and Maximum rates at 20% to 29%. TitanTrust Bank; Prime lending rates at 25% to 28.50%, and Maximum rates at 25% to 36%. United Bank for Africa (UBA); Borrowing rates for prime customers at 28.50%, Maximum rate at 32%. Union Bank; Prime lending rate at 19.65%, and Maximum rate at 35%. Unity Bank; Lending rates at 9% to 30%, and Maximum rate at 38%. Wema Bank; Prime lending rate at 32.50%, and Maximum rate at 34.50%.
However, Zenith Bank’s Prime lending rate is set at 25.28%, and Maximum rate at 30%.
Nigerian banks modify their rates in order to facilitate lending. According to earlier local reports, banks repriced their assets, which meant that clients would have to pay more for borrowing money, when the CBN raised the benchmark interest rate.
Consequently, the price of mortgages, loans, and other credit products has gone up.
Remember that on February 27, 2024, the CBN increased the monetary policy rate (MPR) by 400 basis points, from 18.75% in July 2023 to 22.75%.
