Wana-wazua,

I am currently having an unsecured loan with Barclays bank that charges an intrest of 22.4%.

I believe that is high.

Does anyone have an idea which banks charge lower intrest rates in the Kenyan market for unsecured loans?

Regards

Mathew M.

14% at co-op.

@ Peglo..........
the central bank survey .........
of charges of dec 2008 can help you.........

http://www.centralbank.g...bsd/surveys/Dec2008.pdf

I think they tired of publishing results ......
that Kenyans don't look.........
and once they are being squeezed then they look for advice.......
Your lucky you have wazua ................
Had you looked at the survey then ....
You would find that co-op had the chepest rate but had more charges...
equirolital had a rate of 14 but no other chrges hence being cheaper....
It all in the book......
Lesson learnt i hope........

Thought I'd weigh in... Recently discovered with asset finance, when dealing with banks there is a new animal called 8% flat rate.

Seems they take the full interest for them term of the loan and then add to the prinicipal - to get your monthly payment, simply divide by number of months.

But the catch is, the 8% flat rate (with 'no charge' for early payment) comes 15.17% (reducing balance). The damage is even more if you decide to clear the loan in two years!!!

Loan Amount: 3,000,000
Interest rate: 8.5% (flat rate)
Term: 4 years
Monthly payment: 83,750.00

Loan Amount: 3,000,000
Interest rate: 8.5% (reducing balance)
Term: 4 years
Monthly payment: 73,944.90


Uninformed mwananchi can be like sheep taken to the slaughter.