NATSAVE says the bank’s interest rates are reducing in view of increased liquidity in the financial markets, with its popular Bunjimi Asset Plus Scheme sustained at 13.5 per cent.

NATSAVE managing director Cephas Chabu said the interest rates on its asset and loan facilities have started to reduce following the availability of liquidity in the financial markets owing to oversubscribed treasury bills, with their Bunjimi Asset Plus Scheme maintaining a country record of 13.5 per cent.

“Looking at the treasury bills now, most of the auctions have been oversubscribed, which means that there is too much liquidity in the market. As a result, you will notice that interest rates have slowly been coming down. In our case, most of the instruments which used to be at 21 per cent are now at 16 to 17 per cent so you will find that there has been a drop of three to four per cent. I can proudly talk about Bunjimi Asset Plus where we are the lowest in terms of interest at 13.5 per cent, and I don’t think you can find a loan at that [interest rate] in the market,” Chabu said in an interview in Lusaka.

Asked how the bank’s customers have been reacting to the relatively low level of interest rates on their Bunjimi Asset Plus loan, he highlighted a positive response from farmers countrywide so far.

“It is fairing very well because what is happening is that all our farmers in Mkushi, Kabwe and countrywide are applying. Right now, we have about 400 applications being processed by the Zambia National Farmers Union, and during the [ZNFU 109th] annual congress, we handed over about 20 tractors to farmers,” he responded.

Asked whether the bank has plans to introduce a conventional vehicle and asset facility to cater for the general automobile industry, Chabu, who is also president of the Zambia Institute of Banking and Financial Services (ZIBFS), said the Bunjimi facility has another dimension.

“This product has two dimensions – the Bunjimi and the original and conventional asset plan. The conventional asset plan deals with different types of equipment: it can be business equipment like computers or printers. With Bunjimi, alongside the tractors, we are also giving utility vehicles like vans, which we are facilitating,” added Chabu.  

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