Hi,

kenyans,as far as debt is concerned,do not know strategies of how to refinance loans both personal and corporate.

what mechanisims have been put in place to enable the citizens of this country to become aware and take advantage of servicing a loan with a lower interest payments to the advantage of the borrower?

ggk, suppose i am a layman in finance and want to take advantage of the low interest rates offered by say Saccos how would i take advantage of the overlaping interest charges to my advantage?

The question l think would be, how much would your sacco write on the cheque? It will most probably be the outstanding loan plus 5% of that outstanding loan (for my bank). In that case, is the 4% interest benefit, spread over the duration of the loan, worth the hassle, especially considering for your sacco loan you need to hunt for guarantors, submit payslip, get authorised (stamped) statement from your bank? From off my head, not worth the hassle.

@Barry,
What Sacco asks for you bank statement??.I would be glad to know.On the part of bank loans,the moment you pen,repayment is principal plus interest divided by duration of payment.Halfway through he loan,you would still have to settle the bank some money.Simply said,you are penalised for paying your loan earlier than you had declared....hah!....Most Saccos charge interest on reducing balance,hence,if you clear your loan 5 years before time,you'll only attract a maximum 2% on remaing balance....Who is smiling?

@bwenyenye,that truly can work. but restructuring the loan to a shorter period comes at a cost....cost of paying more interest in addition to the overlaping interest that accrues. considering the cost element and the repayment period, what advanteges come with restructuring the remaining loan bearing in mind the inflationary pressure that the shilling is experiencing now?