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Shylock loans in Kenya

Shylock loans are a kind of loan facilities provided by individuals or businesses looking to make supernormal profits by imposing a very high interest on the loans disbursed. 
Shylock loans Kenya

Such individuals and businesses providing such exploitative loans are called Shylocks hence the name of the facility - Shylock loans.

Shylock loans

In the country Shylock loans are found in many major towns. For example you can get Shylock loans in Nairobi,Kakamega,Nakuru. Kisumu, Mombasa, Thika, Nyeri ,Eldoret among other towns. 

Shylock loan Features 

How can a borrower identify a Shylock loan in Kenya? It's easy. Here are the Shylock loan characteristics which make Shylocks earn supernormal profits; 

Shylock loans have high interest rates .

The interest rates are high for Shylock loans at around 30% for a period shorter than you think.  

Other lenders in Kenya charge a way low interest rate at less than 20% per year.

Shylock loans have a shorter tenure 

The repayment duration for Shylock loans is less than two (two) weeks. This enables the Shylock to get the profits even quick than other lenders who wait for more than one month for loans to be repaid by the borrowers. 

Shylock loans are secured 

You'll need to provide something as security against the loan. Failure to pay the loan will lead to forfeiture of the collateral attached to the loan.

Shylocks in Kenya 

There are a number of Shylocks in Kenya. Some provide loan offline by visiting their office premises while others are trying to use the power of the internet by providing loans online via apps. 

It's not a regulated market and for that reason,it's extremely risky. Once a borrower agrees to take the loan, Shylock will be on the borrower's neck till full loan payment is made. 

All the Shylock thinks of is making extraordinary high profits. For this reason even in acase of late loan payment,a high late payment or loan extension penalty is imposed.

Pawn shops popularly known as 'Loans Against Items ( rehani)' can be a good example of Shylocks in Kenya.

Conclusion

It's highly advised that you avoid Shylock loans as much as possible with reason being that you'll pay way more than relying on the conventional lenders.
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