Wednesday, May 06, 2020

Should I Pay My Loan App Now This COVID-19 Pandemic

    May 06, 2020   No comments

If you have a loan with a loan app,should you pay it now? The best answer is yes. As a good borrower, pay your loans as early as possible. It improves your Credit score with the CRBs. 

Times are tough though and COVID-19 pandemic caused this. Job losses, business closures and more.The shilling is just elusive ,its hard to keep a grip on it. You either make losses or make nothing. 

The loan apps also learned about the hard economic times. The lenders know exactly what you're going through or might soon go through. For that reason, the loan apps can't trust you for a next loan if you pay now.

The apps changed since March being fast reliable mobile money lenders. First it took more than 10 days for a lending decision to be made and the amount was greatly reduced. Now its almost impossible to get loans from these lenders. 

Tala loan app
Tala notification 

The pandemic has already instilled fear into the investors. Most of the apps lack sufficient funds to give out loans.This means if you pay now, you won't get another loan soon,if it's what you expected.

The government announced stopping loan apps from submitting and accessing borrowers information from the CRBs. Its going to be tricky lending to borrowers you can't have any previous information about. Also being 'trust based' loan apps depended mostly in blacklisting defaulters as the gross punishment.  Now that they can't do business with the CRBs, if you repay you loan now, most probably done expect another loan from them.

Is Not Repaying Loans A Good Idea
The answer is No. The lenders also need that money to make profits, pay workers, pay investors and much more. Therefore you should pay your loan.

However, it's not a must you pay that loan now not unless you have enough extra money to help you sail through the COVID-19 pandemic period. After everything calms down ,pay the loan and become a good borrower.


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Mwabaya Katana

About Mwabaya Katana

Mwabaya Katana is a Finance Online Researcher and Writer.He is the founder of 'Loans Kenya' Blog.

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