It is always advisable to pay your loans on time to avoid being blacklisted with the CRB.
This is what many borrowers know and fear the most, being negatively listed. I conquer with them.
But there's another secret measure, Payment Performance Index (PPI) that the lenders also look keenly into it before making a loan decision for a borrower.
This measure is also recorded by the CRB and it is described as below, by Metropol CRB, one of the CRBs in Kenya;
The Payment Performance Index(PPI) is a measure of how promptly customers meet their scheduled contractual financial obligations.The PPI helps Lenders anticipate customers future behavior.Ensure you make timely payments on your obligations to build a good PPI.
In this regard, it is therefore important to make loan repayments as early as possible to increase your PPI.
In many occasions you'll hear people say they just can't repay loans early even if they have the ability to do so, which is wrong as this affects your PPI negatively.
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