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adept		#51 Posted : Wednesday, July 08, 2009 9:13:00 AM
Rank: Member Joined: 12/8/2008 Posts: 359		I have never really understood all this placating we are so fond of i.e. 'hope BBK will read this and act before it is too late' or 'BBK need to respond or else so they can keep their business' etc etc. Even if you are a shareholder,enjoy the capital gains and dividends but get the good financial service you deserve elsewhere. Simply move!
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zamali		#52 Posted : Wednesday, July 08, 2009 10:41:00 AM
Rank: Member Joined: 6/12/2009 Posts: 96		@ Adept move...NIC ? Zama za Kengen IPO.... zama za mali
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Lyanne		#53 Posted : Wednesday, July 08, 2009 10:54:00 AM
Rank: Member Joined: 5/5/2009 Posts: 181		Any Finance Manager worth his salt will let you in on a little secret that a loan from a bank is a double edged sword. Need i say that it cuts both ways? Saccos and Chamas are the way to go for loans geared for consumption,and business start up loans. Banks hide the murky details in the fine print,the Devil's liar so to say. Look what they did to Muite,Matiba,Nyanja,the Moi orphans etc. BBK is the most rabid of them all in this area. They are on the throes of madness in fleecing people off their hard earned cash. They thought they would replicate the credit card phenomena in Kenya,the only bit they seemed to forget is that Kenyans are way to slippery when it comes to debt. Somehow the sword bit the bearer ! The Hedonist
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Pablo		#54 Posted : Wednesday, July 08, 2009 12:13:00 PM
Rank: Member Joined: 3/17/2008 Posts: 567 Location: Nairobi		They are still charging someone I know 21.5% interest on his car loan which he has been trying to refinance. Want to be a millionaire.... plant a million cabbages and sell them at a bob...
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mozenrat		#55 Posted : Wednesday, July 08, 2009 1:43:00 PM
Rank: Veteran Joined: 5/18/2008 Posts: 796		Pliz,Bwana Njunge.... Lets stick to the issue,I did not intend to demean Saccos by using the 'mattress' example.... I've been a member of several for the past 10 years,so Yes. I know all about Saccos, But I do not delude myself about the amount of interest I pay whenever I borrow from my Sacco (which I do quite often).... I agree that I had not accounted for the dividends paid for my contribution... So that is a legitimate argument... But aside from the dividends,tell me,If I had 100k in my house and borrowed 200K from a bank at 18% interest while you had contributed 100k to a Sacco and borrowed 300K at 12%.... Wouldn't we pay the same amount as interest? give or take 0.3% Since this is becoming a referendum on pros and cons of Saccos... Rest assured I agree with all about the 'fine print' and 'varying interest rates' tactics that banks are prone to employing and I'm not advocating for them in any way.... @Tito44... I have walked into a bank and obtained unsecured loans that my salary couldn't cover if I were to lose my job....This I believe is the same concept as 100K contribution being held as security for 300K loan.... Again,I ask,working with the numbers,what is the difference? Incidentally,this reminds me of a friend who tried to convince me that EB offers 'Lower' interest rates for Asset Finance... But when we obtained the repayment schedule,the installments were exactly the same as Stancharts unsecured loan at that time... Stanchart was offering the loan at 18% on a reducing balance basis while EB was doing the same 12% on a straight line basis... Do the math for 200K... The interest for EB is 48K while Stanchart's was about 40K Let the numbers do the talking!!!!
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Waria		#56 Posted : Wednesday, July 08, 2009 3:24:00 PM
Rank: Member Joined: 10/11/2007 Posts: 213		@ monzerat- i think uve answered your question Saccos beat BBK any day! Me first,U next
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mozenrat		#57 Posted : Wednesday, July 08, 2009 3:49:00 PM
Rank: Veteran Joined: 5/18/2008 Posts: 796		Wewe Waria stop cooking up stuff... Read through my two previous posts... The argument was never about Barclays versus Sacco... I just defended Mwenza's argument that the interest rate you pay to a Sacco is effectively more than they state..... I also stated that the increased rate is still lower (by 0.3%) than that of most banks.... So yes,I know and have known througout the discourse that Saccos beat Barclays any day... ama what do you think I meant when I said there is no love lost between me and banks???
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Tito44		#58 Posted : Thursday, July 09, 2009 5:46:00 AM
Rank: Member Joined: 12/16/2008 Posts: 111		@mozenrat I agree that this wasn't a debate on Sacco vs banks (or Barclays for that matter),but it's been educative anyway. Saccos are an alternative source of loans. Your statement reads 'tell me,If I had 100k in my house and borrowed 200K from a bank at 18% interest while you had contributed 100k to a Sacco and borrowed 300K at 12%.... Wouldn't we pay the same amount as interest? give or take 0.3%'. This is entirely wrong if a proper comparison is done. My explanation. Your analogy states that you need 300k (for whatever reason). Going the bank way,you already have 100k in the house and borrow 200k to make a total of 300k. Therefore you pay 18% interest on 200k. This is true. Where you got the calculations wrong is the sacco way. You see,you already have 100k in the sacco but you borrow 300k. Therefore,you pay 12% interest on 200k. After paying 200k,you will write off your loan with your 100k contributions in the sacco (essentially means leaving the sacco and not paying any more interest). Therefore,there is no way the interest will be a paltry 0.something. Do the math friend. To be fair in comparison,i will go by your explanation of interest difference of 0.3% (mind you the sacco is still lower). This assumes you do not want to leave the sacco and decide to pay interest on the entire 300k borrowed. This gives astounding results.Whereas you will have a total of 300k the bank way (i mean 100k savings + 200k borrowings at 18%),you will have 400k the sacco way (i mean 100k sacco savings + 300k borrowings at 12% interest). And having a total of 400k (sacco) vs 300k (bank) my friend is still lower by an interest rate of 0.3% that you gave. I was not fighting you my friend,we are simply learning from each other,and that is the power of SK.
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Mutes		#59 Posted : Thursday, July 09, 2009 6:11:00 AM
Rank: Member Joined: 6/29/2009 Posts: 8		I banked with Barclays while i was living overseas. My experience with them,while there was enough to make me decide not to deal with them anywhere else. They have a way of trapping someone with their finer print. Then they wait for when you are struggling a little bit,they offer you a top up and hang you on the noose a bit tighter. siwezi wakaribia tena hata wakinipa loan ya bure. Tap water while its raining or simply make hay while the sun is shining. Its got to be one of the two!
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McReggae		#60 Posted : Thursday, July 09, 2009 7:01:00 AM
Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi		From the moment I came from the village I had always decided in ma mind that these big multinational banks are a no go,up till now I have never regretted this!!!! The chief value of money lies in the fact that one lives in a world in which it is overestimated. ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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