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OHH GOD RESCUE ME FROM STRANGLING BANK INTEREST RATES!!!
Rank: Member Joined: 3/24/2010 Posts: 101 Location: Nairobi
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The interest rates that had soared high are now coming down. However, the banks are yet to effect them on our loans. I took a loan at 18%, then it rose to 24% now that the interest rate has fallen, will this fall??...or the banks will continue minting my hard earned money?? The difference between the initial agreement and how things stand right now is in excess of Ksh:200,000. Is someone out there having a similar experience? The greatest mistake I did in my life was to take this loan...I was supposed to clear it in 4 yrs now I will clear it in 5 years and two months...GOD help me!!!
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Rank: Elder Joined: 12/11/2008 Posts: 2,306
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The pain is universal if that makes you feel better. Pole Great men are not always wise, neither do the aged understand judgement...
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Rank: Veteran Joined: 11/9/2009 Posts: 2,003
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I hope you didn't take the loan to finance the Valentine!
But don't worry. It happens to men.
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Rank: Member Joined: 3/24/2010 Posts: 101 Location: Nairobi
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radio wrote:I hope you didn't take the loan to finance the Valentine!
But don't worry. It happens to men. At least I invested. But I still feel it is not worthwhile
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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astute wrote:radio wrote:I hope you didn't take the loan to finance the Valentine!
But don't worry. It happens to men. At least I invested. But I still feel it is not worthwhile You "invested" in a premio?  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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astute wrote:The interest rates that had soared high are now coming down. However, the banks are yet to effect them on our loans. I took a loan at 18%, then it rose to 24% now that the interest rate has fallen, will this fall??... Check with your bank coz bank rates have fallen. Currently standing at 19% while mortgages are at 18%. If your bank hasn't lowered your rate, name and shame them
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Rank: Member Joined: 4/20/2012 Posts: 888
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astute wrote:The interest rates that had soared high are now coming down. However, the banks are yet to effect them on our loans. I took a loan at 18%, then it rose to 24% now that the interest rate has fallen, will this fall??...or the banks will continue minting my hard earned money?? The difference between the initial agreement and how things stand right now is in excess of Ksh:200,000. Is someone out there having a similar experience? The greatest mistake I did in my life was to take this loan...I was supposed to clear it in 4 yrs now I will clear it in 5 years and two months...GOD help me!!! Don't regret, once in a while one will always do a blunder. It happens. Which bank is this because others have lowered interest rates??
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Rank: Member Joined: 6/17/2011 Posts: 229
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When the interests were at 13.5%, S&L had a fixed option at 15%. It would be more secure to consider paying a little more than be subjected to a yo-yo. For those who chose this option the feeling of maybe they made the wrong decision didn't last long when the flexible option spiked to over 20%. In an unpredictable market, go in flat.
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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astute wrote:The interest rates that had soared high are now coming down. However, the banks are yet to effect them on our loans. I took a loan at 18%, then it rose to 24% now that the interest rate has fallen, will this fall??...or the banks will continue minting my hard earned money?? The difference between the initial agreement and how things stand right now is in excess of Ksh:200,000. Is someone out there having a similar experience? The greatest mistake I did in my life was to take this loan...I was supposed to clear it in 4 yrs now I will clear it in 5 years and two months...GOD help me!!! Shop around for a bank with lower rate than what you are paying; then transfer your loan there. HOW? Ask them they will gladly tell you how to transfer. BTW: If people stopped complaining and took this kind of action, interest rates would fall to their proper "market level"
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Rank: Veteran Joined: 12/8/2009 Posts: 975 Location: Nairobi
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chiaroscuro wrote:astute wrote:The interest rates that had soared high are now coming down. However, the banks are yet to effect them on our loans. I took a loan at 18%, then it rose to 24% now that the interest rate has fallen, will this fall??...or the banks will continue minting my hard earned money?? The difference between the initial agreement and how things stand right now is in excess of Ksh:200,000. Is someone out there having a similar experience? The greatest mistake I did in my life was to take this loan...I was supposed to clear it in 4 yrs now I will clear it in 5 years and two months...GOD help me!!! Shop around for a bank with lower rate than what you are paying; then transfer your loan there. HOW? Ask them they will gladly tell you how to transfer. BTW: If people stopped complaining and took this kind of action, interest rates would fall to their proper "market level" The alternative would be a sacco at 12%. Anyway many of us have learnt the hard way you are not alone. You will know that you have arrived when money and time are not mutually exclusive "events" in you life!
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Rank: Veteran Joined: 2/3/2010 Posts: 1,797 Location: Kenya
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is sacco really cheaper considering that you have to have 1/3 of the amount in shares and that you have to continue contributing? I may be wrong..but then I could be right
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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eco wrote:When the interests were at 13.5%, S&L had a fixed option at 15%. It would be more secure to consider paying a little more than be subjected to a yo-yo. For those who chose this option the feeling of maybe they made the wrong decision didn't last long when the flexible option spiked to over 20%. In an unpredictable market, go in flat. ...true always go fixed,floating especially in a region where inflation is an issue is courting trouble. possunt quia posse videntur
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Rank: Member Joined: 11/15/2007 Posts: 22
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In Kenya banking there is no fixed interest rate on loans. there is always a disclaimer on the loan form conditions which most of the comm banks have engaged.
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Rank: Member Joined: 3/17/2011 Posts: 112
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Actually once beaten twice shy..i have also learnt the hard way
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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digitek1 wrote:is sacco really cheaper considering that you have to have 1/3 of the amount in shares and that you have to continue contributing? Eventually SACCO becomes 18%...lakini you still earn dividents on your shares!!!! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Member Joined: 5/31/2009 Posts: 226
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Banks will learn the hard-way 2-3 years down the line. The same Kenyans they are squeezing are the same one they will beg to take loans when things go haywire for them with idle cash and based from my analysis at my workplace, colleagues have swore that they will never sign-up for a bank loan at whatever interest as long as the sacco is there talk of chopping the hand that feeds you
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Rank: Elder Joined: 11/28/2006 Posts: 1,799
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premio wrote:Banks will learn the hard-way 2-3 years down the line. The same Kenyans they are squeezing are the same one they will beg to take loans when things go haywire for them with idle cash and based from my analysis at my workplace, colleagues have swore that they will never sign-up for a bank loan at whatever interest as long as the sacco is there talk of chopping the hand that feeds you and u believe ur workmates!!! 
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Rank: Member Joined: 5/31/2009 Posts: 226
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yeah most have repaid their loans in full and others have the sacco takeover the loans 12% vis a vis 24.9% banks will learn the hard way as most people with a choice of alternative source to finance projects will shy away.
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Rank: Member Joined: 6/17/2011 Posts: 229
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Robinhood wrote:The pain is universal if that makes you feel better. Pole http://tinyurl.com/aade5qt
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Rank: Member Joined: 7/6/2010 Posts: 242
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Any thoughts if the mortgage interest rates or unsecured loan rates will go down after general elections?
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OHH GOD RESCUE ME FROM STRANGLING BANK INTEREST RATES!!!
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