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Law Capping interest rates
obiero
#761 Posted : Friday, August 26, 2016 3:52:20 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,256
Location: nairobi
Boris Boyka wrote:
Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance.

Stop giving out such devious ideas

sparkly
#762 Posted : Friday, August 26, 2016 3:58:26 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
14% is still too high.

I know people with mortgages at 3%, yes in Kenya and yes from the same same banks.
Life is short. Live passionately.
watesh
#763 Posted : Friday, August 26, 2016 4:00:12 PM
Rank: Veteran

Joined: 8/10/2014
Posts: 992
Location: Kenya
obiero wrote:
Boris Boyka wrote:
Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance.

Stop giving out such devious ideas

Hahaha thats what will be done
Boris Boyka
#764 Posted : Friday, August 26, 2016 4:08:23 PM
Rank: Veteran

Joined: 11/15/2013
Posts: 1,977
Location: Here
watesh wrote:
obiero wrote:
Boris Boyka wrote:
Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance.

Stop giving out such devious ideas

Hahaha thats what will be done

Very soreeee @Obiero Sad Sad
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
Impunity
#765 Posted : Friday, August 26, 2016 4:25:38 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
Boris Boyka wrote:
watesh wrote:
obiero wrote:
Boris Boyka wrote:
Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance.

Stop giving out such devious ideas

Hahaha thats what will be done

Very soreeee @Obiero Sad Sad


What are the advantages of flat rates vis a vis reducing balance for a bank/lender?
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

FRM2011
#766 Posted : Friday, August 26, 2016 4:50:55 PM
Rank: Elder

Joined: 11/5/2010
Posts: 2,459
Impunity wrote:
Boris Boyka wrote:
watesh wrote:
obiero wrote:
Boris Boyka wrote:
Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance.

Stop giving out such devious ideas

Hahaha thats what will be done

Very soreeee @Obiero Sad Sad


What are the advantages of flat rates vis a vis reducing balance for a bank/lender?


This was discovered by CBK 3 years ago hence introduction of APR.

14.5% flat rate is equivalent to 26% reducing balance. You can't fool anyone with it.
karasinga
#767 Posted : Friday, August 26, 2016 5:11:37 PM
Rank: Veteran

Joined: 2/26/2015
Posts: 1,147
AND THEN ADD THIS GRAVY
Chair Janet L. Yellen SPEECH
It's not over until I win
skype id: karasinga. email: kkarasinga@gmail.com
Gatheuzi
#768 Posted : Friday, August 26, 2016 5:16:25 PM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
..
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
Impunity
#769 Posted : Friday, August 26, 2016 5:19:17 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
FRM2011 wrote:
Impunity wrote:
Boris Boyka wrote:
watesh wrote:
obiero wrote:
Boris Boyka wrote:
Something am thinking about, could banks lower interests but adopt fixed instead of reducing balance? I understand 14% flat rate is expensive than 18% reducing balance.

Stop giving out such devious ideas

Hahaha thats what will be done

Very soreeee @Obiero Sad Sad


What are the advantages of flat rates vis a vis reducing balance for a bank/lender?


This was discovered by CBK 3 years ago hence introduction of APR.

14.5% flat rate is equivalent to 26% reducing balance. You can't fool anyone with it.


So if the bankers decide to charge loans at 14.5% flat rate then this new law is minced meat? aka dead on arrival!!!!

Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

Gatheuzi
#770 Posted : Friday, August 26, 2016 5:21:30 PM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
If what I hear is right "the new law only applies to new loans going by today's statement by co-op" why is all this holla ballo about. Impact on banks interest income will take a while to go lower. First because banks will not refinance existing loans because that will be like shotting their @$$ez.

And now back to the MPs who passed the law hoping to coushion themselves after 2017 when we kick them out, how will they benefit? Were they damn to realize this loophole. Now I get it, someone advised this to "Kamwana" no wonder he signed it.

Back to my original question, why all the panick in sellers to bank stocks-are they damn ama naona vitu hakuna? If we give existing loans an average life of 3 years, by the time they are done with us, a new ammendment bill will have been crafted. @MB you are fine. Nothing will hurt your investments as long as existing loans are not affected. @Obiero, your mortgage remains as expensive as ever. @VVS you will keep paying top dollar on your loan even after 25th Sep.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
303 Pages«<7576777879>»
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