Regulatory Alerts2013-01-01
Bank of Zambia Circular 8/2012 on Maximum Effective Annual Lending Interest Rates
The Bank of Zambia has imposed immediate caps on the maximum effective annual lending interest rates for all licensed non-bank financial institutions. Non-bank microfinance providers face a ceiling of 42 percent or 2.302 times the prevailing commercial bank rate, while other institutions are capped at 30 percent or 1.644 times that benchmark. These limits apply to new loans with immediate effect, existing facilities may continue under current terms unless refinanced, and the Bank will periodically adjust the applicable factors based on economic conditions.
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