I
n response to the announcement by the Monetary Policy Committee of the Bank of Namibia to decrease the policy rate as announced on the 14
th
August, Bank Windhoek hereby confirms the reduction of its Prime Lending Rate by 0.25% from 10.50% to 10.25%. The Mortgage Lending Rate will decrease from 11.50% to 11.25%
The interest rate changes will be effective from Wednesday, 21st August 2019.
According to Diederik Kruger head of funding and liquidity management at Bank Windhoek, the move follows the international downward trend in interest rates initiated by the U.S. Federal Reserve's (FED) interest rate outlook and later adopted by the SA Reserve bank at their July meeting where SA rates also decreased by 25bps.
“This should give some relief to indebted individual and business clients and we welcome this move to support our local economy and clients affected by the economic downturn and the drought," Kruger said.
For more information, contact our Treasury Department at Tel: +264 61 299 1641
Example of how the decrease in the Prime Lending rate may affect consumers
| | Previous | New | | |
| Prime rate | 10.50% | 10.25% | | |
| Mortgage Lending rate | 11.50% | 11.25% | | |
| | | | | |
| Vehicle Loan | 60 | Months | | |
| | | Current Payment | New Payment | Difference |
| | N$ 200,000 | N$4,298.78 | N$4,274.05 | N$24.73 |
| | N$ 500,000 | N$10,746.95 | N$10,685.13 | N$61.82 |
| | N$ 1,000,000 | N$21,493.90 | N$21,370.26 | N$123.64 |
| | | | | |
| Home Loan | 240 | Months | | |
| | | Current Payment | New Payment | Difference |
| | N$ 750,000 | N$7,998.22 | N$7,869.42 | N$128.80 |
| | N$ 1,500,000 | N$15,996.44 | N$15,738.84 | N$257.60 |
| | N$ 3,000,000 | N$31,992.89 | N$31,477.68 | N$515.21 |
| | N$ 4,000,000 | N$42,657.19 | N$41,970.24 | N$686.94 |
| | N$ 5,000,000 | N$53,321.48 | N$52,462.80 | N$858.68 |
Source: Bank Windhoek
