When you go to the bank to ask for a loan, you are usually told what interest the loan will attract over a year. For example, the current interest rate for bank loans in Kenya is capped at 13.5 per cent – and this is the figure your bank will tell you when you inquire about getting a loan from them. But what many of you might not know, and the bank won’t tell you, is that, on top of the 13.5 per cent interest rate, there are multiple fees, levies and charges that account for up to 6.4 per cent addition to the bank interest rate. We take a look at five of the charges; Government taxes The charges that your bank imposes on your loan are subject to exercise tax – usually at the rate of 20 per cent. For bank fees that range from Ksh20,000 to Kshh40,000, the excise charge is usually between Ks4,000 and Ksh8,000 per loan application. Loan application/processing fees Depending on the bank, these fees include an appraisal, negotiation fees and loan arrangements. Banks normally deduct this fee ...