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Law Capping interest rates
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obiero
#841 Posted : Tuesday, August 30, 2016 1:31:54 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,325
Location: nairobi
Musimo wrote:
Sober wrote:
KulaRaha wrote:
kizee1 wrote:
streetwise wrote:
The banks are in denial, they need to include in their announcement the words , for exiting and new loans.

watch this space,,,


can the law apply retrospectively? isn't that against the constitution


All old loans will be repaid and refinanced at new rates...banks are trying to delay the inevitable.


This law cannot be applied retrospectively. That is what killed the Donde Bill


Quick question: the other day,when interest rates on government bills rose to the 20s,didnt banks give notice to charge more interest? Now that the rates are down,why don't I sue my bank for not revising interest rates downwards as they revised them upward before?
Educate me wazuans.

Only @maka seems unaware of the failed implementation on the Donde bill
COOP, IMH, KEGN, KQ, MTNU
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kizee1
#842 Posted : Tuesday, August 30, 2016 2:07:58 PM
Rank: Member

Joined: 9/29/2010
Posts: 679
Location: nairobi
seeing mshwari charges 7.5% processing fee for a 30 day loan lol, Kenyans are smart, can the term interest be interchanged with the term "fee" can a loan be termed as a lease?
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watesh
#843 Posted : Tuesday, August 30, 2016 2:11:17 PM
Rank: Veteran

Joined: 8/10/2014
Posts: 992
Location: Kenya
kizee1 wrote:
seeing mshwari charges 7.5% processing fee for a 30 day loan lol, Kenyans are smart, can the term interest be interchanged with the term "fee" can a loan be termed as a lease?

Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly Genius...you can easily bend these laws
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obiero
#844 Posted : Tuesday, August 30, 2016 2:11:20 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,325
Location: nairobi
Consolidated Bank collapses http://www.businessdaily...362118-iwxiap/index.html
COOP, IMH, KEGN, KQ, MTNU
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instinct
#845 Posted : Tuesday, August 30, 2016 2:15:34 PM
Rank: Member

Joined: 8/17/2007
Posts: 294
obiero wrote:
Musimo wrote:
Sober wrote:
KulaRaha wrote:
kizee1 wrote:
streetwise wrote:
The banks are in denial, they need to include in their announcement the words , for exiting and new loans.

watch this space,,,


can the law apply retrospectively? isn't that against the constitution


All old loans will be repaid and refinanced at new rates...banks are trying to delay the inevitable.


This law cannot be applied retrospectively. That is what killed the Donde Bill


Quick question: the other day,when interest rates on government bills rose to the 20s,didnt banks give notice to charge more interest? Now that the rates are down,why don't I sue my bank for not revising interest rates downwards as they revised them upward before?
Educate me wazuans.

Only @maka seems unaware of the failed implementation on the Donde bill


Not-applying retrogressively means you cannot claim a refund on interest paid. but obviously it will apply on unpaid principal going forward. otherwise market forces will sort it out where you can take a new loan in bank B at 14% to pay an old loan in Bank A. the only people who are sc**wed are those who signed up for fixed rate..such as the asset finance guys
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guru267
#846 Posted : Tuesday, August 30, 2016 5:24:39 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Just had a look at one of the local Bank's corporate loan book and the highest facility interest rate I saw was 15% p.a.

Safaricom is at KBRR + 0.34% for KES loans before this funny law was passed.. Damn!

If the Banks lock out Wanjiku, they don't really stand to lose much at 14.5% p.a. if anything as corporate loans make up over 70% of most of their balance sheets.
Mark 12:29
Deuteronomy 4:16
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newfarer
#847 Posted : Tuesday, August 30, 2016 7:32:58 PM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
kimanimsc wrote:
@Barclays_Kenya: We have with immediate effect reduced the interest rates applicable for all new loans to 14.5% p.a in line with the new law. 1/2

@Barclays_Kenya: Equally, we have increased interest rates applicable on new Zidisha savings accounts & new term deposits to a minimum rate of 7.35% p.a. 2/2

And scaremongering was for
punda amecheka
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MaichBlack
#848 Posted : Tuesday, August 30, 2016 7:46:15 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,913
newfarer wrote:
kimanimsc wrote:
@Barclays_Kenya: We have with immediate effect reduced the interest rates applicable for all new loans to 14.5% p.a in line with the new law. 1/2

@Barclays_Kenya: Equally, we have increased interest rates applicable on new Zidisha savings accounts & new term deposits to a minimum rate of 7.35% p.a. 2/2

And scaremongering was for

Nobody said if the law is passed the banks will not implement. The issue was qualifying will be harder than before and some fellows will be thrown off the Credit bandwagon.

Those adverts are saying exactly what the law required. I don't see any news or the need for excitement.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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newfarer
#849 Posted : Tuesday, August 30, 2016 7:54:12 PM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
The issue of qualifications is an old story no bank would give you a loan if it has doubts that you will not pay. Since immemorial. That 7% on deposits is the game changer to me as bank by law will have to pay. Billions in profits is just immoral
punda amecheka
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  | | Edit by user: Tuesday, August 30, 2016 7:58 PM | Reason: Not specified
Ericsson
#850 Posted : Wednesday, August 31, 2016 6:23:34 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,820
Location: NAIROBI
@newfarer
on the contrary those 15% deposit rates bank were advertising to give are gone.
Banks will also increase insurance premiums on their loans as part of the hidden costs
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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