LOOP, a leading financial services provider, has announced an adjustment to its Base Lending Rate in response to the current macroeconomic environment. Effective from 17th November 2023, the base interest rate on all facilities, both existing and new, will increase to 16.7%.
The base lending rate (BLR) is a minimum interest rate that banks use as a reference point to determine the interest rate they charge on loans
This change comes as short-term rates continue to rise, prompting financial institutions to reassess their lending rates. LOOP’s decision to adjust its Base Lending Rate is a reflection of these broader economic trends.
Under the new rate structure, all new loans will be subjected to risk-based pricing. This means that the interest rate applied will vary depending on the perceived risk of the borrower. Similarly, the interest rate on all overdrafts will also be subjected to risk-based pricing.
Despite these changes, LOOP assures its customers that all other terms and conditions of the facilities will remain the same. The company values its customers and understands the importance of keeping them informed about any changes that may affect them.