BSP reduces personal, housing lending rates

BANK South Pacific has reduced its lending rates for its standard housing and unsecured personal loans to 6.5 per cent per annum and 27 per cent per annum respectively, effective on Monday.
Group general manager retail Paul Thornton, pictured, said the new housing loan rate represented a 0.95 per annum reduction from the previous rate and was applicable to existing and new borrowers.
“BSP believes that home ownership is an important aspect of the economic development of a country and we are proud to offer owner-occupied housing finance to our customers at the lowest rates available in the PNG market,” he said.
“Together with BSP’s first-home ownership loan, the standard housing loan is enabling many Papua New Guineans to enter the housing market and this is a catalyst for them accumulating personal wealth by acquiring a lifelong asset.”
The standard housing loan and first-home ownership loan have a notational repayment term of 40 years with the first home loan having an interest rate of 4 per cent per annum.
The reduction in unsecured personal loan to 27 per cent per annum from the previous 29.9 per cent per annum applies to all new
loans approved from Monday (this week).
Thornton said personal loan offer continued to come with consumer credit cover that provided a funeral benefit of K5,000 payable to the borrower’s nominated administrator and the clearance of any outstanding loan balance in the event of the borrower’s death during the term of the loan.
Terms and conditions apply.
The consumer credit cover comes at no additional cost to the borrower.
BSP’s unsecured personal loan is available to eligible applicants for amounts up to K50,000 and for a maximum term of five years.