Last Updated on April 7, 2025, 7:05 AM AST by Anthony Morris
Basseterre, St. Kitts: The Development Bank of St. Kitts and Nevis has issued an official clarification of its loan repayment fee structure, countering false reports on social media that all borrowers must pay a USD $13.50 monthly fee.
According to the Bank’s April 6 press release, the recently implemented loan payment processing fee is USD $5.00 (plus applicable VAT) and applies only to customers utilizing the Bank’s USD online payment portal – generally overseas borrowers – not to local customers paying in Eastern Caribbean Dollars (XCD).
In other words, domestic loan payments made in XCD (such as via salary deductions, standing orders, or in-person at bank offices) are not subject to this USD $5 + VAT charge.
The clarification came after misinformation had been circulating on Facebook and other outlets, which inaccurately claimed that all Development Bank borrowers would be hit with a roughly US$13.50 monthly fee on their loan payments.
This sparked confusion and public concern. In response, the Bank’s official statement “Important Notice Re: Loan Payment Processing Fee For Using USD Online Payment Portal” made clear that only those loan customers who repay via the USD-denominated online portal incur the USD $5.00 + VAT processing fee, effective April 1, 2025. Local borrowers who continue to pay in XCD are unaffected by the new fee structure.
“The recently implemented USD $5.00 + VAT loan payment processing fee… applies only to customers utilizing the USD online payment portal,” the Development Bank emphasized in its notice, directly debunking the notion of a blanket fee on all loans.
“This fee allows us to continue delivering a high standard of service while ensuring the online payment option remains significantly more affordable than traditional remittance methods,” the Bank’s statement explained, underscoring the rationale for introducing the charge.
The Development Bank noted that providing an online payment facility for overseas clients involves third-party processing costs, and the modest US$5 fee helps cover these while keeping the service accessible.
Importantly, the US$5 online payment fee is substantially lower than the costs of previous payment methods for overseas borrowers. Before the portal’s launch, many international customers sent loan repayments via wire transfers or other remittance services that averaged over XCD $100.00 (approximately US$37) per transaction – plus VAT – in fees. By comparison, the new online portal fee is only a fraction of those charges, making it a far more affordable option for borrowers abroad.
The Development Bank also reaffirmed its commitment to transparency and affordable services in the April 6 release. It stressed that the introduction of the online payment fee was communicated openly and implemented to enhance convenience for customers without imposing undue costs. Bank officials have encouraged any clients with questions or concerns about the fee to reach out to the institution directly for clarification.
The overall message from the Bank is one of reassurance: despite some initial public misunderstanding, the USD $5 + VAT fee is a minimal, targeted charge for using the convenient USD payment portal – not a general new burden on all borrowers. By clarifying the facts and context, the Development Bank of St. Kitts and Nevis aims to put to rest the false $13.50 fee rumors and highlight its ongoing commitment to keeping banking services transparent, customer-friendly, and affordable.
Anthony Morris covers stories related to politics and regional developments. His in-depth reporting about governance and reforms makes him stand out in regional journalism, with a deep analysis of political trends and their impact on Caribbean communities.
