Dear Editor,
Reference is made to Radica Persaud’s letter, ‘Is this normal practice with all Banks?’ which was carried in the Kaieteur News on Thursday, October 9, 2008.
While no Bank was named, we feel compelled to respond as the issue raised in this letter is germane both to good banking practice and to the banker/customer relationship.
Firstly, at Republic Bank Limited, we believe that it is the right of a client applying for a loan to know the method of interest rate calculation and charges being applied to that loan at the outset of the transaction.
Secondly, we use the reducing balance method to calculate interest charged on mortgage loans. Therefore, as your mortgage loan balance reduces, so does your interest payment.
The method of interest rate calculation and details of any fees related to a loan transaction are divulged to our clients up front. This is in keeping with our established practice of transparency in our dealings with our customers.
We are grateful for the opportunity to advise of Republic Bank’s practice and hope that our response clarifies this issue as it relates to our organisation.
Yours faithfully,
Michelle Johnson
Manager
Marketing and Communications
Republic Bank (Guyana) Ltd
