WINDHOEK – In response to the reduction of the Repo rate by the Monetary Policy Committee of the Bank of Namibia, as announced on August 14 2019, Bank Windhoek has confirmed the reduction of its Prime Lending Rate by 0.25 percent from 10.50 percent to 10.25 percent. As a result, Bank Windhoek’s Mortgage Lending Rate will decrease from 11.50 percent to 11.25 percent. The interest rate changes were effective from Wednesday, August 21, 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 US 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.
The reduced interest rates will affect loan repayments such as mortgage lending rates and vehicle loans. For example, a Bank Windhoek mortgage repayment over 240 months for a property valued at N$1.5 million was N$15 996.44 before the reduction and is now N$15 738.84, signifying a reduction of N$257.60.
Furthermore, repayments of a Bank Windhoek vehicle loan of N$500 000 over 60 months was N$10 746.95 but has now been slightly reduced to N$10 685.13, which is a reduction of N$61.82.