Despite the Central Bank of Nigeria’s (CBN) recent increase in the Monetary Policy Rate (MPR) to 26.75%, Renmoney has chosen to maintain its current rates, demonstrating a steadfast commitment to its customers.
The CBN has raised the MPR four times since February in an effort to curb inflation, resulting in a total increase of 750 basis points from 22.75% to the current 26.75%. The MPR is the benchmark interest rate that sets the cost of borrowing in the economy, influencing how banks price their loans.
While many banks may feel compelled to match the CBN’s increase, Renmoney believes that the current economic conditions already make it difficult for customers to effectively utilize credit.
At Renmoney, we are deeply committed to managing the long-term effects of a rate increase. We understand that an increase would not only raise the cost of borrowing but also impact our customers’ debt-to-income ratio, which could hinder their ability to repay effectively. A surge in defaults could, in turn, affect our ability to continue providing collateral-free loans as we have for the past 12 years.
Funsho Akinwumi, Executive Director, stated, “At Renmoney, we recognize the challenges our customers face in the current economic climate. Despite the Central Bank’s recent MPR increase to 26.75%, we’ve chosen to keep our rates steady this time around. Our decision is driven by a commitment to provide relief for our customers, ensuring they continue to access loans conveniently without an excessive strain on their income.”
Kamal Boushi, the Chief Executive Officer, acknowledged the CBN’s efforts to address inflation through the MPR increase but emphasized Renmoney’s dedication to providing affordable credit during economic inflation. He added, “By keeping our rates unchanged, we are committed to helping our customers secure the loans they need to support their businesses and manage their finances effectively.”
Renmoney remains dedicated to supporting its customers through these challenging times, ensuring they can continue to access the financial resources they need without additional burden.
For more information, please visit www.renmoney.com
