Scotiabank offers funds at low rate of 5.99%
Scotiabank Jamaica has reduced interest rates on two lines of credit for personal borrowers but only until March 31.
The Scotialine funds are available at 9.99 per cent for unsecured credit, down from 23.75 per cent, and 5.99 per cent for cash-secured and real estate-secured borrowings, down from 15.75 per cent.
Scotialine Gold credit is available at 5.99 per cent for unsecured, cash secured and real estate secured arrangements.
The 5.99 per cent rate is the lowest of the loan specials that banks have engaged in for over a year as concession to calls for cheaper credit and outright cuts in interest rates to single digit. The new rates have been on offer since December, the bank said. Applicants for the lines of credit will be required to pay an annual membership fee of J$5,468 for Scotialine and J$13,645 for Scotialine Gold. The latter comes with a credit card.
"We have lowered the rate in a thrust to reintroduce customers to the facility which is an excellent option for those who know they will need to make big ticket purchases within a given period. Instead of coming in to seek several loans during a year, customers can open a line of credit, which gives them pre-approved access to their funds within the limit and terms of their agreement," said executive vice-president of retail banking, Wayne Powell, in a Scotiabank release.
Scotialine offers minimum credit of US$2,000 and Scotialine Gold US$3,500.
"We encourage our customers to incorporate the service into their money management and cash flow plans. For example, large credit card balances could be paid off via a Scotialine facility. However, it is very important that customers note that a credit card is for day-to-day transaction, while the Scotialine is a useful tool for big ticket items," said Powell.
Scotiabank said it will charge no penalty if the credit line is set up but is unused.
Scotiabank's base lending rate is now at 15.75 per cent.