@Okiya is it legal for banks to lend at s monthly rate of 3.66%? this is the case of mobiloan from kcb
I think its now harder to get a loan and once you do get it, the hidden charges are punitive, take this for example
1)Monthly account service fee of 35o kes (not a problem right? read number 2 and 3 below :D)
2)Annual fees being equal to 1% of the outstanding loan balance payable on the anniversary of the loan facility each year until the loan is repaid in full
3)Debit Service Reserve amount (âDSRAâ) being equal to 6% of the loan approved amount (this must be deposited in a none interest earning account and will remain dormant for the entire loan term)
Item 3 above is a killer, assume you get a loan facility of 5M, you have to cough up 300k upfront which will stay idle for the entire loan duration in a none interest earning account, can you imagine how much you are loosing?.
oh and if you dont have the DSRA amount, they also offer to loan it to you at an interest :D:D:D:D:D
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Sasa wewe na 300/- unaitwa âour valued partnerâ sasa si Chris Kirubi akifungua account huko ataitwa âOur Father who art in Heavenâ.
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Very much legal. Mobile loans are outside the scope of interest rate caps
Si unipunguzie loan yangu ya stanchart aki ukipitia hukoâŚI will be your slave :p:p:p
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Itâs the first time am hearing about DSRA. Which bank is this?
Based on what you have just said, I think itâs more expensive for me to borrow now than it was before the interest rate caps.
Thats a new charge which was just introduced by NIC Bank, highway robbery if you may say, below screenshot is an excerpt from their terms and conditions
[ATTACH=full]65429[/ATTACH]
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@marine1 I remember you called me a doomsayer when I mentioned some of the things that would happen when/if the interest rates were capped. Any comment?
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Seems everybody was erroneously deducted that sh300. Me i had to complain many times before they refunded
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That 1% annual fees is basically interest rate just that it has been given another name.
They are really trying to frustrate the market, the loan intrest capping is actually working against the same people it was meant to protect, i know of two different instances of my friends who have been turned down, and by the way they are not first time borrowers, these are people who have an history with the bank that can stretch from NRB to Timbaktu, one was told that âthere is no enough mitigationâ, the other was told that her account is âunstableâ, what the fucking hell does that even mean
yes it is, an insider source told me that they had to come up with ways of ensuring that their recurring revenue is at the same level it was before the act, or atleast as close as possible, so they had to come up with all forms of underhand tricks
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Aaaai
Sikopi sasa
KCB mimi huwa naonea mbali sanaâŚThey can let you down big time. Case in point Last year during Christmas, their systems were offline completely, you could not access cash, na utaomba nani pesa sikukuu?
@Okiya my predictions that I made in the aftermath of interest rate cappings have all come to fruition. There is nothing alarming here and just to reiterate
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Kenyan Banks are overstaffed and offer poor quality flimsy bottom line services. By my anecdotal estimation, most banks if well structured can operate with a third of their current workforce. So no news here banks need to fire more and more workers. There is room for firing just ask Mckinsey! But this is mostly a knee jerk reactionâŚfear of the unknown and what not.
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Kenyan banks were making money in a very lazy manner with near zero effortâŚThey were on a profit-making autopilot and could only falter if the top management stretched their luck and siphoned out some of the spoils. Time to work hard banks!
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Banks will have lesser revenue than they had in the previous years⌠So please donât overact when half year results are posted and revenues are slashed by half for the smaller banks
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Expect innovations from banks in the next few monthsâŚthey will only make services better also expect better services at the CRBs
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Expect smaller banks to merge in the near future. Is it a bad thing? Not at all. With the current constitution and checks in the legal framework, I think Kenya is overbanked.
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Banks will survive, they have a nice spread on loans that would be envied in other countries, they can still play ping pong with customer deposits and can benefit from innovations and a leaner workforce. Foreign investors already can see that.
Edit: More banks are even applying for licenses to join the frayâŚthey surely canât be wrong with the market analysis
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Stanchart hawana pressure sana but topup wanakataa, Jamii Bora walininyima invoice discounting after hii bill na vile tulikuwa tunapelekana vizuri, Equity wananiitia loan but huwa sifeel hiyo bank. I think nowadays bila security kupata loan imekuwa hard.
After a couple of years (my bet is one year) things will be back to kawaida but with better services⌠Banks zinataka kupunguza their NPLs kwa hivo they are applying blanket regulations on everyone because CRB is not reliable. But once issue with CRB is sorted out utakuwa unapigiwa asubuhi ukachukue loan kwa bank.
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Twendeni Sacco watuwangu. .
I asked the same questions a couple of weeks ago. Interest rate capping was not carefully thought through. What was it meant to achieve? Really, a government is supposed to discourage people from borrowing. And, if otherwise has it made it easier to borrow? Theoretically, capping makes it infinitely harder for banks to lend, especially to people with a checkered borrowing history. Sometimes, mama mboga really needs to borrow but her history is not good. Her income is up and down. Before, the banks were flexible. Albeit a high rate, but at least you could borrow. Such small business owners are a good reason not to cap the rates. It gives the banks flexibility. But our legislators combined IQ cannot sum up to the number of seats they occupy.
The president should have sat down with he banks on a round table, and asked them, what impact would capping the rates have. Then he would ask them alternatives. The banks are the best resource for such issues. Then, if nothing tangible comes out, have them sit with legislators. Not sling it out on the news. A better solution would have been found. Now its loan sharks galore.