Ad Earn Money by Joining Mara

Loan Interest Rate Kenya - Why Borrowers Must Read Terms And Conditions

Loan terms and conditions


Loan interest rate is a small percentage of money charged on the principal amount borrowed by the applicant.

Types of Interest Rates In Kenya 

There are different types of interest rates charged by each individual lender. Some lender charge a fixed rate while others charge something flexible for example they can charge on reducing balance of the principal amount. 

In Kenya , lenders can charge any value above the set Central Bank Rate (CBR) which now stands at 7.00 %. This applies to the Central Bank of Kenya (CBK) regulated creditors only. 

For example, the loan interest rate Equity Bank is different from the KCB ,Family Bank, Cooperative Bank loan interest rate. To get an approximate current interest rate for these lenders, kindly check Cost Of Credit. 

Zash loan interest rate, Tala loan interest rate, Branch loan, Zenka loan or any other loan app interest rates are different because these lenders are yet to be regulated by the CBK. In many cases their interest is high. 

Loan Charges In Kenya 

In addition the interest rate, some lenders include other fees depending on the loan facility borrowed. Some of the fee may include but not limited to; 
  1. Registration fee
  2. Processing fee
  3. Legal fees
  4. Valuation fees

I Don't Want The Loan, Can I Return It

Before taking any kind of loan, borrowers must read and understand the terms of the credit facility. 

Some of my readers took loans in haste without confirming the loan interest rates and this happened; 

Dear o pesa, av been told that my loan have been approved but I have realised that your interest are very high, kindly take it, I don't want


In such a scenario, the loan is already considered active. The borrower must pay with the interest as described by the lender - Opesa.

To avoid such, always be patient and go through all the loan terms and conditions. Ask for help or clarification in advance , understand before proceeding with taking the loan.

The other item which many borrowers don't check keenly is the repayment duration.  Always confirm the duration you'll take before you pay the loan.

When a loan facility is supposed to be paid within seven (7) days and you thought without confirming, that the loan tenure is 30 days, you'll be in trouble. 

Many lenders charge a late payment fee. In many cases the fee is charged daily but sometimes monthly. Depending on the number of days or months taken, this can be a huge amount on top of the loan.

Borrowers, just read the terms and conditions of each loan facility before proceeding with application. 
Advertisements

Write a comment

Subscribe to Loans vLog YouTube Channel

Subscribe to Loans vLog YouTube Channel
Loans vLog