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Law Capping interest rates
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jmbada
#2721 Posted : Tuesday, February 26, 2019 1:15:15 PM
Rank: Member

Joined: 1/1/2011
Posts: 396
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muandiwambeu
#2722 Posted : Tuesday, February 26, 2019 7:07:12 PM
Rank: Veteran

Joined: 8/28/2015
Posts: 1,247
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%

U have to be efficient to survive. Enslaving others with inefficient systems won't work anymore. Smart brains leads always.
,Behold, a sower went forth to sow;....
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FRM2011
#2723 Posted : Tuesday, February 26, 2019 7:18:22 PM
Rank: Elder

Joined: 11/5/2010
Posts: 2,459
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%



There is such a huge opportunity for one bank or NBFI to take over the SME niche that has been completely starved of credit.

Asset finance is almost impossible to get nowadays. Even the bank that became big through asset finance, NIC, have become too picky nowadays.

Faulu microfinance is part of the UAP-Old Mutual group. They are not affected by the interest capping law as a NBFI. There are 1,000s of SMEs who can pay 19-21% comfortably if the credit was available. But Faulu has joined Equity, Coop, KCB, Family in denying credit to the SMEs.

Pathetic strategy.
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bird_man
#2724 Posted : Tuesday, February 26, 2019 9:13:49 PM
Rank: Veteran

Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
FRM2011 wrote:
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%



There is such a huge opportunity for one bank or NBFI to take over the SME niche that has been completely starved of credit.

Asset finance is almost impossible to get nowadays. Even the bank that became big through asset finance, NIC, have become too picky nowadays.

Faulu microfinance is part of the UAP-Old Mutual group. They are not affected by the interest capping law as a NBFI. There are 1,000s of SMEs who can pay 19-21% comfortably if the credit was available. But Faulu has joined Equity, Coop, KCB, Family in denying credit to the SMEs.

Pathetic strategy.


How do they lend at 19-21% with interest capping at 13%?
Formally employed people often live their employers' dream & forget about their own.
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Angelica _ann
#2725 Posted : Tuesday, February 26, 2019 10:44:12 PM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
bird_man wrote:
FRM2011 wrote:
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%



There is such a huge opportunity for one bank or NBFI to take over the SME niche that has been completely starved of credit.

Asset finance is almost impossible to get nowadays. Even the bank that became big through asset finance, NIC, have become too picky nowadays.

Faulu microfinance is part of the UAP-Old Mutual group. They are not affected by the interest capping law as a NBFI. There are 1,000s of SMEs who can pay 19-21% comfortably if the credit was available. But Faulu has joined Equity, Coop, KCB, Family in denying credit to the SMEs.

Pathetic strategy.


How do they lend at 19-21% with interest capping at 13%?


Faulu is a microfinance institution & therefore is not affected by the rate cap!!!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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wukan
#2726 Posted : Wednesday, February 27, 2019 10:33:25 AM
Rank: Veteran

Joined: 11/13/2015
Posts: 1,654
FRM2011 wrote:
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%



There is such a huge opportunity for one bank or NBFI to take over the SME niche that has been completely starved of credit.

Asset finance is almost impossible to get nowadays. Even the bank that became big through asset finance, NIC, have become too picky nowadays.

Faulu microfinance is part of the UAP-Old Mutual group. They are not affected by the interest capping law as a NBFI. There are 1,000s of SMEs who can pay 19-21% comfortably if the credit was available. But Faulu has joined Equity, Coop, KCB, Family in denying credit to the SMEs.

Pathetic strategy.


Return on capital vs return of capital. Banks and MFIs have to weigh the risk. Banks in Argentina have not been lending for 15 years now and they are ok.

Let's say an SME took 10m loan for 5 years paying 227k per month then due to cut on consumer spending sales drop to 150k per month, a cut on interest rates to 11.5% wouldn't rescue the business. It only brings monthly payment down to 219K.

The SME needs more of consumer spending not a cut in interest rates. Even if you cut the interest rate to zero the SME will still default on the principal. The SME owner will look at his monthly sales and scale down on his credit demand.

You can read what @mnandii calls the social mood here on wazua where wazuans are more interested in discussing bizarre murders than MAkiba bond.
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AndyC
#2727 Posted : Wednesday, February 27, 2019 1:33:48 PM
Rank: Member

Joined: 4/21/2015
Posts: 151
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%


Link?
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Ericsson
#2728 Posted : Wednesday, February 27, 2019 1:38:23 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
AndyC wrote:
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%


Link?

Tough Terms and conditions
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Angelica _ann
#2729 Posted : Wednesday, February 27, 2019 2:13:30 PM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
Ericsson wrote:
AndyC wrote:
jmbada wrote:
The first big bank to break ranks....Stanchart offering to buy out loans at 11.5%


Link?

Tough Terms and conditions


C&P here!!!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Angelica _ann
#2730 Posted : Wednesday, February 27, 2019 8:53:06 PM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
Let me leave this here, though this deal was doomed from the start......


https://www.google.com/a...-asAMP-6rbhej/index.html
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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303 Pages«<271272273274275>»
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