The Central Bank of Nigeria (CBN) recently increased its interest rate. This could be better timing for those who have borrowed loans from banks, as it would automatically increase the earlier agreed interest, which will be paid upon loan repayment.
Recall that the governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, recently opened up on the CBN’s plans at the Monetary Policy Committee (MPC) in Abuja. There, it was announced that the Monetary Policy Rate (MPR) has been further increased, which adds to the number of times it has been increased in recent times.
The latest CBN increase is 150 basis points to 26.25 percent from 24.75 percent in March. This is a further 0.5 percent increase from the former rate, which will have a strong impact on banks. For the banks to cope with it, they would have to review some of their policies.
Following the CBN directive, some popular commercial banks have moved swiftly to double-check their assets and avoid incurring unexpected losses.
Following the CBN increase in interest rate, GTCO has moved swiftly by upsurging its interest rate on all its loan processes. The bank has announced to the public its action to upsurge the interest rate due to the CBN policy while also revealing how it plans to do so.
GTCO announced that the interest rate on all its loan facilities is set to increase. However, they revealed that they would increase it to 28.5 percent from 27 percent, which is in line with adjusting to the CBN policy.
The commercial bank commended the efforts of its customers in their unwavering support and patronage and announced that an increase in its loan facilities will be effected in June, specifically on the 5th of next month.
