Frequently Asked Questions
ANNUAL PERCENTAGE RATE
Q. What is APR and will it make loans cheaper?
- There are various costs associated with a loan. These costs range from bank fees and charges to third party costs, such as legal fees, insurance, and government levies.
- When taking up a loan, a borrower often focuses on the bank interest rate; however, this is just one of the loan cost components. Therefore, to better determine the total cost, a formula should be used to compute the various elements into a numeric representation (a percentage rate). When this percentage rate is based on a r a 12 month period, it is called the Annual Percentage Rate (APR).
- In most countries APR is mandated by law. But in Kenya, the banking industry has proactively adopted the APR model in conjunction with the Central Bank of Kenya’s requirement that banks provide customers with the Total Cost of Credit (TCC) and Loan Repayment Schedule.
- While the APR and TCC disclosures do not have directly and immediate effect on the cost of credit, customers will be empowered to shop around for the loan products that meet their needs.
- The enhanced transparency will therefore stimulate competition within the banking industry thus contributing to more competitive interest rates for customers with a good credit track record.
Q. What do I do when I am not given this information by my bank or if am charged more than was initially in the APR?
This information is the right of every bank customer. Customers should raise any issues with the relevant customer care representatives or the banks’ head office. Customers can also email firstname.lastname@example.org and a Kenya Bankers Association member of staff will facilitate a response from the bank.
Q. Can I calculate the APR for myself?
Yes. Every bank customer can access the Total Cost of Credit template and APR calculator on the KBA website at www.kba.co.ke. The customer will still need to ascertain the accuracy of the costs from the bank so as to ensure that the self-computed APR is accurate. However, the APR calculator will provide a good indication of what to expect.
Q. Is this different from the bank’s base lending rate?
- Yes it is different. A bank’s base lending rate is a benchmark that a bank computes to determine its standard interest rate. Once it has this ‘base’, the bank will add a premium based on the risk margin of the customer and other factors. While there is one ‘base’ lending rate for a bank at a given time, the APR is customer-specific, transaction-specific and product-specific.
- It is important to note that banks will be transitioning away from quoting the base lending rate in line with the current initiative by the Central Bank of Kenya and Kenya Bankers Association to introduce the uniform refence rate across the industry.
- Ultimately, what a customer should know is the Total Cost of Credit and the APR. And that the reference rate would already be factored in the APR computation.
Q. Is APR the only basis of comparing cost of credit from different banks?
- The APR is only one of the factors that a prospective loan applicant can use to make a decision.
- Other factors are the additional value that the bank is providing including supplementary services and flexible repayment terms.
KRA TAX PAYMENTS
Q. What is iTax
(Integrated Tax Management system) iTax is a system that enables taxpayers to file returns electronically, make payments and enquire about their tax status online.
- Kenya Revenue Authority (KRA) has partnered with Consolidated Bank to enable taxpayers pay taxes at the branches through the iTax system.
Q. How do I pay taxes using the iTax system?
Q. What is an e-slip?
An e-slip is an electronic ticket that contains the taxpayer’s details i.e. name, PIN number, amount of tax due.
Q. For how long is an e-slip valid?
An e-slip is valid for seven (7) days from the moment it has been generated from the KRA website.
Q. What if the e-slip is invalid?
If the e-slip is found to be invalid the customer has to go back to KRA website for another e-slip.
Q. What are the modes of paying taxes under the iTax system?
Cash (This is applicable to both CBKL and non-CBKL customers) For Consolidated Bank Customers one can use their cheque but their A/Cs must be funded
Q. What does the customer get after paying tax at Consolidated Bank?
The customer is provided with a receipt print out indicating that the taxes have been paid.
Q. What are the charges for using iTax?
CBKL will not charge for paying taxes under the iTax system.
Q. What types of taxes are payable under iTax?
All domestics taxes are payable under the iTax system.
MORE FAQ QUESTIONS
Q. How long does it take for me to receive my cheque book once I place the order?
It takes 7 working days from the day you make the application to when you receive the cheque book.
Q. How long does it take for me to receive my ATM card and pin?
It takes 5 working days for the ATM card to be ready whereas the pin is sent to your mobile phone.
Q. What should I do upon the expiry of my ATM card?
Q. All you need to do is visit your branch and your new card will be issued to you.
Q. What should I do incase my ATM card is lost or stolen?
You should report the card stolen/lost by calling our toll free number for the card to be stopped. You will then visit any of our branches to apply for a new card which will take 3 working days to process.
Q. What should I do if I forget the password of my ATM card?
Q. You will need to apply for a new pin number at any of our branches. The charge for a new pin will be Kshs. 50.
Q. What should I do if I want to increase the ATM withdrawal limit on my card?
Just write to the bank stating your intention to increase your withdrawal limit. Your limit request will be adjusted on the same day.
Q. What should I do if am interested in opening an account or applying for a loan and cannot visit the branch?
You can call the branch nearest to you and have them send the direct sales team to assist you in the process.
Q. What do you need to transfer money abroad?
The swift code of the bank and the recipient's account details. The bank’s swift code is CONKKENA
Q. Does the bank undertake CSR activities?
Yes it does. Please see more details under ‘CSR’
Q. Does the bank offer mobile/ phone banking services?
Yes it does. Please see more details under ‘E cell banking’
Q. Does the bank offer trade finance facilities?
Yes it does. Please see more details under ‘Trade finance facilities’
Q. Does the bank provide LPO financing?
Yes it does. Please see more details under ‘Trade Finance Facilities’