Diamond Bank has cut all its retail lending rates to make loans more affordable by the people. The bank in a statement said it is also planning to launch Nigerian’s first ever fixed mortgage rate.
The statement said: “Diamond Bank has dropped interest rates on all retail lending products by up to 5 per cent per annum.” He pointed out that the rates apply to all new lending from 1st April, 2010 and will also apply to all existing borrowing that is not delinquent while all delinquent debt or customers in default will stay on their existing rate until the accounts are regularised.
“As part of our contributions towards boosting the growth and development of the Nigerian economy, especially at this critical period of recession, we are expanding our lending window. We have even moved a notch up in this initiative by crashing all our retail lending rates. Doing this, we strongly believe will create access to facilities required to drive the economy” the statement said.
Among the affected consumer products are Mortgages loans now pegged at 20 per cent variable with 2 per cent one off fee and the usual security and insurance requirements; auto Loans, which is now 22 per cent variable with 2.5 per cent one off fees; Personal Loans and Leases which is now 23 per cent variable with 2.5 per cent one off fees; while the Macro, Small, Medium Enterprises (MSME) that are (secured)- revolving credit and asset purchase loans is 24 per cent with 2.5 per cent one off fee; MSME (unsecured) - revolving credit and asset purchase loans is 25 per cent plus 2.5 per cent one-off fee.
The statement said: “We are fully aware of the challenges many Nigerians are passing through in acquiring their dream homes. That is why we are setting the pace in the mortgage industry with the introduction of our new Fixed Rate Mortgage pegged at 18.75 per cent fixed until 30th September 2011. It comes with a fee of N125, 000 plus the normal 2 per cent fee in addition to security and insurance arrangements.”