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Forum => Kenya Discussion => Topic started by: RV Pundit on September 29, 2016, 07:39:13 AM

Title: Looks like interest cap is working...more lending
Post by: RV Pundit on September 29, 2016, 07:39:13 AM
http://www.businessdailyafrica.com/Lower-cost-of-loans-increases-banks-lending/539552-3398364-ir43tfz/index.html
Title: Re: Looks like interest cap is working...more lending
Post by: Empedocles on September 29, 2016, 08:55:18 PM
http://www.businessdailyafrica.com/Lower-cost-of-loans-increases-banks-lending/539552-3398364-ir43tfz/index.html

Good news but KCB for one are using sneaky little tricks to get around that pesky bill. They're now charging 1.16% per month on their KCB Mpesa loans then adding something like 2.5% administrative fee.

Ok, that's still much better than Safcon's 7.5% per month administrative fee but come on.  :)
Title: Re: Looks like interest cap is working...more lending
Post by: RV Pundit on September 30, 2016, 08:46:05 AM
Banks had outpriced themselves out of credit market; only the suicidal would borrow loan at 20-25%. Now at 14% the Gov has really helped them. Now they'll have an avalanche of good quality borrowers. Anybody borrowing at 25% is not serious...

The micro-loans at 1.7% or 2% per month is going to unlock these mobile-loans whose cost should really be rock bottom - all you need is a server running some algorithm -nearly zero CAPEX and OPEX! Where I work...we have on server..handling m-pesa payments of nearly 0.5M clients....with just one guy to baby sit it.