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Converting a local Ksh loan into US$ loan any advise from Wazuas?
Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Philanthropist wrote:@cc @Banker and mwekez@ji, thanks guys for your responses. I totally agree that it was wrong to take the loan in Ksh; however, by then, I had no idea (foolishness) that I could access a us$ loan, my employer has no in-house leading incentive unfortunately! @ Mwekezi@ji: I have tried to reach out I&M and see what they will advise. I did contact TMC Africa, floated my proposal; they promised to get back to me! I hope they do; TMC is an independent brokerage firm based at the GREENHOUSE along Ngong Rd, once I get more info, I will post it for the benefit of other borrowers in the same situation! http://www.tmcafrica.com/
All the best @Philanthropist .... keep us posted
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Rank: New-farer Joined: 5/30/2013 Posts: 56 Location: Mini Apple
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If you have property in the states, access a home equity loan and payoff the Ksh loan. You should be a able to get a decent rate compared to above 20%.My local area rates, the worst I can get is about 8%. This presumes you have decent credit and own a home.
The con of this, you get to load your credit history with $125K in debt, but it is what it is. The real estate markets are picking up , but I'm not sure if the banks are lending reasonably again. Good luck.
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Rank: Veteran Joined: 1/25/2012 Posts: 1,624 Location: Langley
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mwekez@ji wrote:cc @Banker Lady Admin call him/her. If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.
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Rank: Hello Joined: 5/31/2013 Posts: 6
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@kendata26: Unfortunately, or fortunately, the property is in Kenya. I have never lived in the US; I always envy the guys who do such a borrowing in the US and invest in Kenya; I know a few who have been able to purchase decent properties and sold them at a premium tag using the lower dollar interest rates' borrowing! And that's how I woke up to this hunt. After Muhidi kukula my 24% before he did a favor to drop it to 20%!  Whoops!
Being aware of your surroundings is the first step to avoiding slips, trips and falls.
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Rank: New-farer Joined: 4/1/2013 Posts: 20
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Hallo everyone. My sincere apologies for the frequent disappearing acts. Am ussually unable to log in from any mobile device; hope admin can help.
@philanthropist, my employer is offering USD denominated loans @ 9%. If your current bank is offering 11%, the biggest question is whether it will make economic sense to cross-over. If I took up the loan, your savings in interest expense would come to approximately $5,500.
I would charge you 2.5% in processing fee ($3,000), take out life insurance for you because you are borrowing as an individual ($800), and you would bear the collateralisation costs i.e. legal fee and valuation fee ($1,200). (Stanchart had a promotion last year where they were paying the proffesional fees for the lawyer and valuer.
Should your bank decide to drag their feet as you have hinted above, this process could take as long as 6 months.
In a nutshell, the charges you would incur while crossing over would almost certainly wipe out the amount saved in interest expense.
NB : Always avoid any bank that chooses these profesionals for you. Most banks give you their panel from whom you pick your choice.
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Rank: Veteran Joined: 11/20/2009 Posts: 1,402
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Banker wrote:Hallo everyone. My sincere apologies for the frequent disappearing acts. Am ussually unable to log in from any mobile device; hope admin can help.@philanthropist, my employer is offering USD denominated loans @ 9%. If your current bank is offering 11%, the biggest question is whether it will make economic sense to cross-over. If I took up the loan, your savings in interest expense would come to approximately $5,500.
I would charge you 2.5% in processing fee ($3,000), take out life insurance for you because you are borrowing as an individual ($800), and you would bear the collateralisation costs i.e. legal fee and valuation fee ($1,200). (Stanchart had a promotion last year where they were paying the proffesional fees for the lawyer and valuer.
Should your bank decide to drag their feet as you have hinted above, this process could take as long as 6 months.
In a nutshell, the charges you would incur while crossing over would almost certainly wipe out the amount saved in interest expense.
NB : Always avoid any bank that chooses these profesionals for you. Most banks give you their panel from whom you pick your choice. wondering if it a profile issue, or more likely a User issue.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Banker wrote:Hallo everyone. My sincere apologies for the frequent disappearing acts. Am ussually unable to log in from any mobile device; hope admin can help.
@philanthropist, my employer is offering USD denominated loans @ 9%. If your current bank is offering 11%, the biggest question is whether it will make economic sense to cross-over. If I took up the loan, your savings in interest expense would come to approximately $5,500.
I would charge you 2.5% in processing fee ($3,000), take out life insurance for you because you are borrowing as an individual ($800), and you would bear the collateralisation costs i.e. legal fee and valuation fee ($1,200). (Stanchart had a promotion last year where they were paying the proffesional fees for the lawyer and valuer.
Should your bank decide to drag their feet as you have hinted above, this process could take as long as 6 months.
In a nutshell, the charges you would incur while crossing over would almost certainly wipe out the amount saved in interest expense.
NB : Always avoid any bank that chooses these profesionals for you. Most banks give you their panel from whom you pick your choice. Good counsel @Banker. .... and may lady admin check on your loggin issue .... OAN, your views are welcomed on matter under discussion in post #57 of the following NBK thread >>> http://www.wazua.co.ke/forum.as...osts&t=24365&p=3
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Rank: Hello Joined: 5/31/2013 Posts: 6
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@banker, I have gotten my first response from one of the banks, and it seems that your indicative "other charges" are correct,one thing that I want to negotiate for is a lower monthly loan repayment and a 9% rate, this will give me room to save and divert the savings into developing the property. I am ready to meet the crossover costs as I see it as a saving over the years,( not as expensive as paying an interest rate of 20% plus on a 10m loan)- painful Thank you very much for the wise advise! I will post more info as I keep on chasing the hunt! Whoops!
Being aware of your surroundings is the first step to avoiding slips, trips and falls.
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Rank: Hello Joined: 5/31/2013 Posts: 6
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As a matter of good practice in Wazua community, I am reporting back that I have finally convinced my bank, and they approved my currency conversion into a dollar loan and gave me a 10% interest rate from around a 20% in Ksh;  however, I learned that: 1, It is not easy to transfer the loan from one bank to the other; this will cost you a fortune as@banker and the rest of Wazua's, had indicated/advised 2. When the currency conversion is done, the bank will use a higher dollar (sale) or purchase the dollars from them at a rate of 1 US$ to Ksh 87 - good reasoning but too high. 3. The loan repayment period is reduced to a shorter repayment period - from 7 to 5 years; the reason is that they can't guarantee long term dollar loan!! My first dollar loan repayment is in August 2013 - it took more than 5 months to complete the HUNT!  Thank you all for your contribution and wealthy of knowledge in Wazua! Whoops!
Being aware of your surroundings is the first step to avoiding slips, trips and falls.
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Converting a local Ksh loan into US$ loan any advise from Wazuas?
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