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Avalanche reduction in interest rates
Rank: Member Joined: 8/5/2011 Posts: 125
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Just got a call from friends in banks where am a client... I think there is going to be a marked response to the KBRR + K with banks reducing the interest rates. Probably one bank has done it and triggered (or will trigger) a stampede.
Unsecured loans <15%, mortgages <11%...
Na vile employer aliniongeza 30K juzi, where's that thread for mortgages etc nisome nijue nitachezea hii vipi
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Rank: Member Joined: 8/5/2011 Posts: 125
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Should the avalanche happen does it change the profile of bank stocks in a portfolio... i.e., impact of low interest rates?
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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kiwaru wrote:Just got a call from friends in banks where am a client... I think there is going to be a marked response to the KBRR + K with banks reducing the interest rates. Probably one bank has done it and triggered (or will trigger) a stampede.
Unsecured loans <15%, mortgages <11%...
Na vile employer aliniongeza 30K juzi, where's that thread for mortgages etc nisome nijue nitachezea hii vipi
Hope it isn't a suck in then raise the "k" and trap the clients; read the T&C's the banks reserves right to increase interest if need be! wapi @jaggernut what does your "sister" say Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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kiwaru wrote:Just got a call from friends in banks where am a client... I think there is going to be a marked response to the KBRR + K with banks reducing the interest rates. Probably one bank has done it and triggered (or will trigger) a stampede.
Unsecured loans <15%, mortgages <11%...
Na vile employer aliniongeza 30K juzi, where's that thread for mortgages etc nisome nijue nitachezea hii vipi
If everyone goes to that bank,it will run out of cash to lend..?
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Rank: User Joined: 1/20/2014 Posts: 3,528
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Boris Boyka wrote:kiwaru wrote:Just got a call from friends in banks where am a client... I think there is going to be a marked response to the KBRR + K with banks reducing the interest rates. Probably one bank has done it and triggered (or will trigger) a stampede.
Unsecured loans <15%, mortgages <11%...
Na vile employer aliniongeza 30K juzi, where's that thread for mortgages etc nisome nijue nitachezea hii vipi
Hope it isn't a suck in then raise the "k" and trap the clients; read the T&C's the reserves right to increase interest if need be! wapi @jaggernut what does your "sister" say    Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Elder Joined: 6/23/2009 Posts: 13,506 Location: nairobi
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standard chartered leads the way
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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obiero wrote:standard chartered leads the way 14.9% personal,10.9% mortgage though less risk (insurance) fee = hidden charges but it's okay Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Member Joined: 1/2/2008 Posts: 268 Location: Nairobi
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Boris Boyka wrote:obiero wrote:standard chartered leads the way 14.9% personal,10.9% mortgage though less risk (insurance) fee = hidden charges but it's okay Those are good rates, but fixed or reducing balance?
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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icecube wrote:Boris Boyka wrote:obiero wrote:standard chartered leads the way 14.9% personal,10.9% mortgage though less risk (insurance) fee = hidden charges but it's okay Those are good rates, but fixed or reducing balance? Reducing balance I suppose though we can wait and see the loan brochures from all the banks. I Rem at one time coop eqty kcb stan chart offering loans at same rates their actual monthly installments differed with that of coop being highest; processing fee already deducted from the loan amount. In some banks the "insurance fee" is deducted from the loan amount while in others it's included in monthly installments. Wazuan bankers wafafanue Hii. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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In 2 weeks time wataishiwa na pesa www.standardmedia.co.ke/...nk-may-stop-giving-loansEverybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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icecube wrote:Boris Boyka wrote:obiero wrote:standard chartered leads the way 14.9% personal,10.9% mortgage though less risk (insurance) fee = hidden charges but it's okay Those are good rates, but fixed or reducing balance? Very important to establish this! For example, I'm told the 'cheap' loans Faulu has been advertising are not cheap at all! They are apparently hood winking Kenyans. Those rates are calculated on the principal as opposed to a reducing balance!! This means you end up paying the same or more than someone on a much higher quoted rate on a reducing balance! Mchezo Kasarani!! 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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Rank: Veteran Joined: 11/2/2006 Posts: 1,206 Location: Nairobi
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MaichBlack wrote:icecube wrote:Boris Boyka wrote:obiero wrote:standard chartered leads the way 14.9% personal,10.9% mortgage though less risk (insurance) fee = hidden charges but it's okay Those are good rates, but fixed or reducing balance? Very important to establish this! For example, I'm told the 'cheap' loans Faulu has been advertising are not cheap at all! They are apparently hood winking Kenyans. Those rates are calculated on the principal as opposed to a reducing balance!! This means you end up paying the same or more than someone on a much higher quoted rate on a reducing balance! Mchezo Kasarani!! Stanchart...step in the right direction but quite useless.They need to specify whether they will use reducing balance,flat rate or compound interest. I notice other hidden charges on items such as legal fees,insurance,valuation etc.Can this be factored in the KBRR+K rate?Or is it impossible since they are basically third party costs? Formally employed people often live their employers' dream & forget about their own.
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Rank: Member Joined: 7/20/2011 Posts: 161 Location: nairobi
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bird_man wrote:MaichBlack wrote:icecube wrote:Boris Boyka wrote:obiero wrote:standard chartered leads the way 14.9% personal,10.9% mortgage though less risk (insurance) fee = hidden charges but it's okay Those are good rates, but fixed or reducing balance? Very important to establish this! For example, I'm told the 'cheap' loans Faulu has been advertising are not cheap at all! They are apparently hood winking Kenyans. Those rates are calculated on the principal as opposed to a reducing balance!! This means you end up paying the same or more than someone on a much higher quoted rate on a reducing balance! Mchezo Kasarani!! Stanchart...step in the right direction but quite useless.They need to specify whether they will use reducing balance,flat rate or compound interest. I notice other hidden charges on items such as legal fees,insurance,valuation etc.Can this be factored in the KBRR+K rate?Or is it impossible since they are basically third party costs? @bird_man Those third party costs should be included. Also, stanchart launched a forty five day sale on mortgages, personal unsecured and business loans. So this would suggest this new rates only apply to people who take up loans during this period. Patience. You cannot have a baby in one month by impregnating nine women....
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Rank: User Joined: 1/20/2014 Posts: 3,528
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But even if it is reducing balance but variable ... guys will still be taken to the cleaners in 2/3 years time. Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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MaichBlack wrote:icecube wrote:Boris Boyka wrote:obiero wrote:standard chartered leads the way 14.9% personal,10.9% mortgage though less risk (insurance) fee = hidden charges but it's okay Those are good rates, but fixed or reducing balance? Very important to establish this! For example, I'm told the 'cheap' loans Faulu has been advertising are not cheap at all! They are apparently hood winking Kenyans. Those rates are calculated on the principal as opposed to a reducing balance!! This means you end up paying the same or more than someone on a much higher quoted rate on a reducing balance! Mchezo Kasarani!! This is the kind of nonsense CBK should rein in,you cannot do this kind of mis selling and go away scott free,they will definitely lose a lot of customers soon. possunt quia posse videntur
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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Othelo wrote:But even if it is reducing balance but variable ... guys will still be taken to the cleaners in 2/3 years time. Especially for long term loans! I can just imagine so thread titles in 2016. Examples: "Bank increases interest rates by 7 percentage points. What are my options?", "Monthly loan repayments doubled! Can I sue?" etc. 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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Rank: Member Joined: 8/5/2011 Posts: 125
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maka wrote:MaichBlack wrote:icecube wrote:Boris Boyka wrote:obiero wrote:standard chartered leads the way 14.9% personal,10.9% mortgage though less risk (insurance) fee = hidden charges but it's okay Those are good rates, but fixed or reducing balance? Very important to establish this! For example, I'm told the 'cheap' loans Faulu has been advertising are not cheap at all! They are apparently hood winking Kenyans. Those rates are calculated on the principal as opposed to a reducing balance!! This means you end up paying the same or more than someone on a much higher quoted rate on a reducing balance! Mchezo Kasarani!! This is the kind of nonsense CBK should rein in,you cannot do this kind of mis selling and go away scott free,they will definitely lose a lot of customers soon. The loans are on offer during the 45-day sale period. A month ago I took an unsecured loan that was priced at 18%... this was a month or so after the previous sale when loans were given at 15%. Those who had gotten their loans during the sale period did not suffer an upward adjustment... (at least not yet)
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Rank: Member Joined: 8/4/2009 Posts: 136
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From the ad in today´s paper; personal loans are being offered at rates starting from 14.9% KBRR+ 5.77% then in the fine print there is a tiny remark that KBRR is currently 9.13%.
Someone please explain what this means. Is this what they will show you to get your foot in the door and once you´re in you find a noose around your neck?
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Rank: Member Joined: 8/4/2009 Posts: 136
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Ok, so I have now understood it.
KBRR = 9.13%
Bank´s lending rate = KBRR + bank´s margin, in this case 5.77%
Thus 14.9% charged by the bank = 9.13 + 5.77
The big question now is what happens when this KBRR goes up or down? but of more concern up?
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Rank: Veteran Joined: 11/2/2006 Posts: 1,206 Location: Nairobi
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wangu.n wrote:Ok, so I have now understood it.
KBRR = 9.13%
Bank´s lending rate = KBRR + bank´s margin, in this case 5.77%
Thus 14.9% charged by the bank = 9.13 + 5.77
The big question now is what happens when this KBRR goes up or down? but of more concern up? It will def go up and down but that should not worry you since your contract says interest rate is e.g 14.9%....well unless in the fine print you went for a VARIABLE interest rate loan! Also...its pretty useless if the bank doesnt say whether this is a reducing balance interest loan or flat rate.You might actually find one banks loan of 9.5% e.g Faulu is more expensive than a loan of say 18% from Equity! More needs to be done here!Otherwise, haisaidi vile! Formally employed people often live their employers' dream & forget about their own.
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