Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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FRM2011 wrote:guru267 wrote:FRM2011 wrote:The mwananchi bank's are in real trouble. They have facilities called micro loans that are secured with household goods I.e. chattels mortgage.
Am looking at a letter of offer for 300,000 from coop bank.
Int rate : 2% pm flat
Nego fee : 2.5%
After adding insurance, guarantee and hypothecation fees, the APR is 45.2%.
You read that right. These pranksters have been shafting wanjiku in the name of availing credit to her.
Am told equity is much much worse. Will share once I see a sample offer letter. Walk into your nearest bank and apply for a loan under the above security structure at 14.5% p.a. and all you will be looking at is a decline letter. @guru, the person in trouble here is not the borrower. The bill has just turned off a tap that was giving coop interest revenue at four times the other loans. Am looking at equity figures right now and if JM tells you he will abandon wanjiku, he is lieing. If he does, or dares to slow down lending to Wanjiku, he will simply close shop. After 21 days, Equity's interest expense jumps by 350%. These schlock interest revenues dry up. It's basic survival for equity. Good luck walking into a bank with your unstable job and a sofa set and wardrobe as security and thinking they will lend to you at 14% p.a. With Equity... They will simply adjust the minimum interest earning balances upwards to a comfortable level... The law does not stop Banks from changing terms, conditions and tarriff guides and they still reserve full right of admission. Mark 12:29
Deuteronomy 4:16
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