Zambia: Interest Rates Slashed in Zanaco Promo

ZANACO has launched a three-month promotion under which loan interest rates have been reduced from 20 to 17 per cent and payment tenure increased from two to five years.

For those who would be applying for agriculture loans in the next three months, the interest rate threshold would be slashed from the current 26 to about 21 per cent.

Speaking at the launch of the promotion, dubbed 'Empowering building Zambia' sales promotion in Lusaka yesterday, Zanaco managing director Martyn Schouten said the new campaign would help push the key segments in the country.

Mr Schouten said this would see an increase in the investment capacity of the people in the economy as the low interest rates would be available.

Mr Schouten said the bank had targeted the three segment groups in the promotion such as civil servants, and quasi Government institutions like universities.

He said the second segment would target those in the agriculture sector from the smallest farmer to the largest who would during the window period, be accessing reduced interest rates from the 27 to 21 per cent.

"People should take advantage of the window period to apply for loans and overdrafts from Zanaco because they will enjoy low interest rates," Mr Schouten said.

Mr Schouten also said that Zanaco recognised the role the Small and Medium Enterprise (SME)s play in the country's economy.

He said the SME sector has been included and that Zanaco was considering doubling the money available to lend out to the sector from the current K70 billion to about K150 billion.

"SMEs who will be walking to our outlets within the three months window period to apply for overdrafts will be offered better services such as invoice discounting and the new launched VISA business debt cards from Zanaco," he said.

Mr Schouten added that Zanaco had also increased the access to free collateral provisions from K100 million to about K150 million for those clients who would be applying for loans during the three months period.

Zanaco currently has over 650,000 clients across the country and is number two largest lender in the country.

He also said Zanaco was exploring means and ways in which the payment periods for those in the agriculture sector could increase for them to finance long-term projects of up 20 years.

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