FIRST National Bank (FNB) Namibia has announced an interest rate reduction, following the Bank of Namibia’s repo rate cut last week of another 100 basis points.
“The prime lending rate has been reduced by 1.00% to 9.00%, while the home loan rate will decrease from 11.00% to 10.00%, effective from 25 April 2020,” announced Elzita Beukes, FNB Communications Manager.
Further changes have been made to the credit card rates, which have been reduced to 12,80% for all the various credit card categories.
Beukes added that the bank decided to meet those customers dependent on interest income by cutting the investment and savings rates at lower than 1% change in the repo rate.
“We know that many of our customers, such as senior citizens, are dependent on interest from our investment products to fund living expenses, and as such we cut at less than 1% on many of our investment products. The repo rate cut by the regulator assists commercial banks to help their clients with their debt and saving onto their customers,” she said.
“With this move we are able to help individuals and businesses during these uncertain times and hope that this will mitigate the impact of COVID-19 on the livelihood of our nation,” concluded Beukes.