INVESTRUST Bank Cuts Lending Rates By 4 %

INVESTRUST Bank has answered Government’s call for lower Kwacha base lending rate by reducing it from 20 percent to 16 percent per year.
This measure is with effect from tomorrow (November 1, 2011).
Investrust Bank managing director Friday Ndhlovu said the reduction follows numerous appeals and complaints from customers and other stakeholders over the high interest rates prevailing in the country.
Mr Ndhlovu said in a statement issued in Lusaka yesterday that the reduction relates to facilities to be granted after October 31.
“The bank took advantage of the strategic planning workshop held last week to discuss this very important subject and after a careful review of the various factors that we always take into account when determining interest rates, we found it necessary to review our base rate downwards,” he said.
Mr Ndhlovu said the bank reviewed its cost structure to ensure it optimises its operating costs and enhance the level of efficiency for the bank to be able to afford such significant reduction.
“The move is aimed at supporting Government’s desire for a vibrant local economy and we are hopeful that with the reduced cost of borrowing, as many businesses as possible will be able to access affordable credit to grow their businesses,” he said.
Mr Ndhlovu said as a local bank, its passion is for a flourishing local private sector and will remain committed to supporting efforts aimed at having a vibrant local economy.