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Law Capping interest rates
Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Swenani wrote:@Kaigangio  Let me first correct your calculations, at the end of one year based on your calculations, you would have borrowed kshs 86 481(7206*12) and repaid kshs 90,000(7500*12) Please go to the nearest mirror near you, look straight in the mirror and ask yourself this question loudly Quote:Can KCB loan me 86,481 per year at an interest of 4% ? If you are satisfied that you are still paying an interest rate of 4% p.a come back here and post more, otherwise smash your head into that damn mirror That kaingagio guy is right . His Calc is right to the point
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Rank: Elder Joined: 2/27/2007 Posts: 2,768
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Rank: User Joined: 8/15/2013 Posts: 13,236 Location: Vacuum
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Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku If Obiero did it, Who Am I?
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Rank: Member Joined: 10/6/2009 Posts: 587
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Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku I may not be so much of a mathematician but Kaigangio's calculations are convincing and logical. @Swenani, You seem to be asuming that @Kaigangio is not trading with the 7206/= once he/she receives it, which is obviously wrong.
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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Kaigangio wrote:@ maichblack @swenani etal I am in KCB Mpesa territories. Today is 3rd October 2016 and this is what I will do starting tomorrow for a small project at hand whose actual construction commencement is about 16 months away. 1. On 4th October 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 which I will buy 250 pieces of 9" x 9" machine dressed stones. I repay kshs 7500.00 on or before 31st October 2016. 2. On 4th November 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th November 2016. 3. On 4th December 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st December 2016. 4. On 4th January 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st January 2017. 5. On 4th February 2017 I, will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 28th February 2017. 6. On 4th March 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st March 2017. 7. On 4th April 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th April 2017. 8. On 4th May 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st May 2017. 9. On 4th June 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th June 2017. 10. On 4th July 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st July 2017. 11. On 4th August 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st August 2017. 12. On 4th September 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th September 2017. On 4th October 2017, I will add up all the money that will have been credited into my account and compare it with kshs 86,481.00. I will also add up the repayments and confirm if I will have paid up kshs 90,000.00 in total including the interests. As of now being Wanjiku I will not be interested in borrowing a lumpsum of kshs 90,000.00 because the banks will not lend me and even if they got touched and gave me the money, after one year I will have paid back kshs 103,050.00 or somewhere thereabout.  Where will you be getting 7,500/= from every month to pay the loan??? Every month you will have to look for 7,500/= to repay your loan!!! Every month!!! Why look for 7,500/= every end month so that you can borrow 7,200/= 4 days later. The bank is only returning your money less 300/=!!! If you can get 7,500/= from elsewhere EVERY MONTH, why not use it on your project??? You will actually have more money to complete your project!!! But knock yourself out! I am invested in both Banks and Safaricom so more money for money for me!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: Elder Joined: 10/3/2008 Posts: 4,057 Location: Gwitu
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Baratang wrote:Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku I may not be so much of a mathematician but Kaigangio's calculations are convincing and logical. @Swenani, You seem to be asuming that @Kaigangio is not trading with the 7206/= once he/she receives it, which is obviously wrong. You are the one assuming that he is trading.Gizzard says he is buying stones!Clearly he is getting the money to pay from other sources which makes me wonder why he needs the loan. This loan can work for hawkers and Mama Mbogas but someone building a house! Truth forever on the scaffold
Wrong forever on the throne
(James Russell Rowell)
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha
Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku Haki @Swenani I am suing you!!! #BrokenRibs 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: User Joined: 8/15/2013 Posts: 13,236 Location: Vacuum
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Baratang wrote:Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku I may not be so much of a mathematician but Kaigangio's calculations are convincing and logical. @Swenani, You seem to be asuming that @Kaigangio is not trading with the 7206/= once he/she receives it, which is obviously wrong. Do not mix issues, whether he trade or not, the interest paid and the rate applied remains the same... We are not look at his net worth or income, we are simply looking at the interest paid If Obiero did it, Who Am I?
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Swenani wrote:Baratang wrote:Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku I may not be so much of a mathematician but Kaigangio's calculations are convincing and logical. @Swenani, You seem to be asuming that @Kaigangio is not trading with the 7206/= once he/she receives it, which is obviously wrong. Do not mix issues, whether he trade or not, the interest paid and the rate applied remains the same... We are not look at his net worth or income, we are simply looking at the interest paid In my own way it's the same as bank gives you 7500 in January and tells you keep that money till December and bring it back the 7500. But meanwhile be paying only 294 every month. At the end of the day you would pay interest of 294x12= 3528 which is 48% interest rate. I could be wrong though
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Swenani wrote:Baratang wrote:Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku I may not be so much of a mathematician but Kaigangio's calculations are convincing and logical. @Swenani, You seem to be asuming that @Kaigangio is not trading with the 7206/= once he/she receives it, which is obviously wrong. Do not mix issues, whether he trade or not, the interest paid and the rate applied remains the same... We are not look at his net worth or income, we are simply looking at the interest paid So its simply 4% per month.. As a shareholder I'm good with that for unsrcured risk Mark 12:29
Deuteronomy 4:16
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Rank: User Joined: 8/15/2013 Posts: 13,236 Location: Vacuum
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enyands wrote:Swenani wrote:Baratang wrote:Swenani wrote:Take this two scenerios 1. Guy Y's A pocket lends 86,480 pocket B, for whih pocket B will be charged say 4% p.a on the principal amount(86,480) to move money back to pocket A, Every month he takes 7206 from has pocket B and tops up 294 to pocket A, at the end of the year, Pocket A will have 90,0000 and he will have topped up 3,520(294*12) 2. Guy X's A pocket on the other hand lends pocket B 7,206 charges 4% p.m to move the money back to pocket A.He does the following every month i) At the end of the month, he moves 7206 from pocket B and tops up 294 to pocket A ii) at the beginning of every month,pocket A will again lend pocket B 7206. Question 1: How much has Guy X handled in one year including interest in both pockets A and B? A: 7,500 B: 90,000 C. 10,734 D. 86,480 E. Nilisomea kwa dirisha Question 2: How much interest has Guy's X pocket B paid to pocket A in a year A.294 B. 3,528 C. Nilisomea kwa dirisha Question 3: What is the annual interest rate charged by guy's x pocket A to pocket B? A. 4% B. 48% C. Nilisomea kwa dirisha In the above scenerio, replace pocket A with KCB and pocket B with wanjiku I may not be so much of a mathematician but Kaigangio's calculations are convincing and logical. @Swenani, You seem to be asuming that @Kaigangio is not trading with the 7206/= once he/she receives it, which is obviously wrong. Do not mix issues, whether he trade or not, the interest paid and the rate applied remains the same... We are not look at his net worth or income, we are simply looking at the interest paid In my own way it's the same as bank gives you 7500 in January and tells you keep that money till December and bring it back the 7500. But meanwhile be paying only 294 every month. At the end of the day you would pay interest of 294x12= 3528 which is 48% interest rate. I could be wrong though Atleast you have finally seen the light enyands wrote:Swenani wrote:@Kaigangio Let me first correct your calculations, at the end of one year based on your calculations, you would have borrowed kshs 86 481(7206*12) and repaid kshs 90,000(7500*12) Please go to the nearest mirror near you, look straight in the mirror and ask yourself this question loudly Quote:Can KCB loan me 86,481 per year at an interest of 4% ? If you are satisfied that you are still paying an interest rate of 4% p.a come back here and post more, otherwise smash your head into that damn mirror That kaingagio guy is right . His Calc is right to the point If Obiero did it, Who Am I?
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Rank: Veteran Joined: 11/19/2010 Posts: 1,308 Location: nairobi metropolitan
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I am wondering how so many guys can fall for this. Kaigangio borrows 7500 at 4 percent per month every month for a whole year ..What is the total interest in percentage payable annually.? ..thought hilo ni swali ambalo halihitaji majibu... Look at it Kaigangio in another way; you have gotten 12 loans @ 4 % on straight line method as opposed to 0ne loan of kes 90000 at 14 % on reducing balance... Since a sizable number of members are not very good at these numbers. .For their own benefit let state as below, ...It can easily be proven. . 1. Borrowing 90,000 Kes at 14 % on reducing balance,the total interest paid at the end of a year is 6970. . 2. If you pay 4% interest per month on the 7500 you borrow,the annual interest on reducing balance is not 48% but circa 80%... 3. For those who borrow from saccos. ..14% while a third of what you're being lent is your money? ..how cheap is that. .You rationalise that after all you are going to get dividend for your money? Considering both questions the effective rate on reducing balance is circa 17%...and I don't Need add that sometimes you borrow less than you have in shares or you require gurantors. .cheap isn't it? Habari ndiyo hiyo... Democracy does not belong to the dead
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Rank: Member Joined: 9/9/2015 Posts: 233
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githundi wrote:I am wondering how so many guys can fall for this.
Kaigangio borrows 7500 at 4 percent per month every month for a whole year ..What is the total interest in percentage payable annually.? ..thought hilo ni swali ambalo halihitaji majibu Look at Kaigangio question in another way In other words, whats the effective rate? "Buy when there's blood in the streets, even if the blood is your own."
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Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
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Kaigangio wrote:@ maichblack @swenani etal I am in KCB Mpesa territories. Today is 3rd October 2016 and this is what I will do starting tomorrow for a small project at hand whose actual construction commencement is about 16 months away. 1. On 4th October 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 which I will buy 250 pieces of 9" x 9" machine dressed stones. I repay kshs 7500.00 on or before 31st October 2016. 2. On 4th November 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th November 2016. 3. On 4th December 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st December 2016. 4. On 4th January 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st January 2017. 5. On 4th February 2017 I, will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 28th February 2017. 6. On 4th March 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st March 2017. 7. On 4th April 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th April 2017. 8. On 4th May 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st May 2017. 9. On 4th June 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th June 2017. 10. On 4th July 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st July 2017. 11. On 4th August 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st August 2017. 12. On 4th September 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th September 2017. On 4th October 2017, I will add up all the money that will have been credited into my account and compare it with kshs 86,481.00. I will also add up the repayments and confirm if I will have paid up kshs 90,000.00 in total including the interests. As of now being Wanjiku I will not be interested in borrowing a lumpsum of kshs 90,000.00 because the banks will not lend me and even if they got touched and gave me the money, after one year I will have paid back kshs 103,050.00 or somewhere thereabout. Kaigangio . The credit facility you will be getting is 7,500 PER MONTH and every single time. Every 294 shillings you pay is 4% of the principal, per month. By the next month when you go back to borrow,you have already parted with 7,500 shillings in repayment. At that point you are at point ZERO. Assume there is a plot being sold @86,000 shillings and your are given the option to pay for it in full after one year, can this loan of yours buy it for you? Why? Another way to look at it. If one borrowed that 7,500 every month for 20 years, monthly total funds disbursed would be 1,769,620 shillings. How possible is it to borrow 1,769,620 shillings for 20 years @ 4% interest?
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Rank: Veteran Joined: 11/19/2010 Posts: 1,308 Location: nairobi metropolitan
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The Great wrote:githundi wrote:I am wondering how so many guys can fall for this.
Kaigangio borrows 7500 at 4 percent per month every month for a whole year ..What is the total interest in percentage payable annually.? ..thought hilo ni swali ambalo halihitaji majibu Look at Kaigangio question in another way In other words, whats the effective rate? 80% percent on reducing balance. .did I just say it circa 80%... See below. . I am wondering how so many guys can fall for this. Kaigangio borrows 7500 at 4 percent per month every month for a whole year ..What is the total interest in percentage payable annually.? ..thought hilo ni swali ambalo halihitaji majibu... Look at it Kaigangio in another way; you have gotten 12 loans @ 4 % on straight line method as opposed to 0ne loan of kes 90000 at 14 % on reducing balance... Since a sizable number of members are not very good at these numbers. .For their own benefit let state as below, ...It can easily be proven. . 1. Borrowing 90,000 Kes at 14 % on reducing balance,the total interest paid at the end of a year is 6970. . 2. If you pay 4% interest per month on the 7500 you borrow,the annual interest on reducing balance is not 48% but circa 80%... 3. For those who borrow from saccos. ..14% while a third of what you're being lent is your money? ..how cheap is that. .You rationalise that after all you are going to get dividend for your money? Considering both questions the effective rate on reducing balance is circa 17%...and I don't Need add that sometimes you borrow less than you have in shares or you require gurantors. .cheap isn't it? Habari ndiyo hiyo.. Democracy does not belong to the dead
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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mkeiy wrote:Kaigangio wrote:@ maichblack @swenani etal I am in KCB Mpesa territories. Today is 3rd October 2016 and this is what I will do starting tomorrow for a small project at hand whose actual construction commencement is about 16 months away. 1. On 4th October 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 which I will buy 250 pieces of 9" x 9" machine dressed stones. I repay kshs 7500.00 on or before 31st October 2016. 2. On 4th November 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th November 2016. 3. On 4th December 2016, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st December 2016. 4. On 4th January 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st January 2017. 5. On 4th February 2017 I, will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 28th February 2017. 6. On 4th March 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st March 2017. 7. On 4th April 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th April 2017. 8. On 4th May 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st May 2017. 9. On 4th June 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th June 2017. 10. On 4th July 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st July 2017. 11. On 4th August 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 31st August 2017. 12. On 4th September 2017, I will borrow kshs 7500.00 but my account will be credited with kshs 7206.75 and buy the stones. I will repay kshs 7500.00 on or before 30th September 2017. On 4th October 2017, I will add up all the money that will have been credited into my account and compare it with kshs 86,481.00. I will also add up the repayments and confirm if I will have paid up kshs 90,000.00 in total including the interests. As of now being Wanjiku I will not be interested in borrowing a lumpsum of kshs 90,000.00 because the banks will not lend me and even if they got touched and gave me the money, after one year I will have paid back kshs 103,050.00 or somewhere thereabout. Kaigangio . The credit facility you will be getting is 7,500 PER MONTH and every single time. Every 294 shillings you pay is 4% of the principal, per month. By the next month when you go back to borrow,you have already parted with 7,500 shillings in repayment. At that point you are at point ZERO. Assume there is a plot being sold @86,000 shillings and your are given the option to pay for it in full after one year, can this loan of yours buy it for you? Why? Another way to look at it. If one borrowed that 7,500 every month for 20 years, monthly total funds disbursed would be 1,769,620 shillings. How possible is it to borrow 1,769,620 shillings for 20 years @ 4% interest? Total funds disbursed after 20 years is KES 7206. because you keep repaying every month before you can access another disbursement. Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 9/14/2011 Posts: 834 Location: nairobi
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http://mobile.nation.co....3494-qrwv3kz/index.html
IN SUMMARY On Tuesday September 20, Bank of Uganda Governor Prof Emmanuel Tumusiime-Mutebile called an impromptu meeting at his office, which excluded senior management staff, to discuss interest rate caps. About seven executives attended Prof Tumusiime-Mutebile’s meeting, including representatives from Stanbic Bank, PricewaterhouseCoopers Uganda, the East African Development Bank, Uganda Revenue Authority and the Ministry of Finance, Planning and Economic Development. Prof Mutebile raised objections to interest rate caps, arguing that they could escalate distortions in the credit market, trigger blackmarket activity and deny many borrowers access to credit, according to a source who attended the meeting
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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heri wrote:http://mobile.nation.co.ke/business/Bank-of-Uganda-under-pressure-to-limit-cost-of-credit/1950106-3403494-qrwv3kz/index.html
IN SUMMARY
On Tuesday September 20, Bank of Uganda Governor Prof Emmanuel Tumusiime-Mutebile called an impromptu meeting at his office, which excluded senior management staff, to discuss interest rate caps.
About seven executives attended Prof Tumusiime-Mutebile’s meeting, including representatives from Stanbic Bank, PricewaterhouseCoopers Uganda, the East African Development Bank, Uganda Revenue Authority and the Ministry of Finance, Planning and Economic Development.
Prof Mutebile raised objections to interest rate caps, arguing that they could escalate distortions in the credit market, trigger blackmarket activity and deny many borrowers access to credit, according to a source who attended the meeting Enough said!!! But if you listen to some people here, apparently everyone who has some Finance and Economics knowledge is wrong on this issue! And people who know zilch are correct!!! 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: 7/5/2010 Posts: 2,061 Location: Nairobi
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MaichBlack wrote:heri wrote:http://mobile.nation.co.ke/business/Bank-of-Uganda-under-pressure-to-limit-cost-of-credit/1950106-3403494-qrwv3kz/index.html
IN SUMMARY
On Tuesday September 20, Bank of Uganda Governor Prof Emmanuel Tumusiime-Mutebile called an impromptu meeting at his office, which excluded senior management staff, to discuss interest rate caps.
About seven executives attended Prof Tumusiime-Mutebile’s meeting, including representatives from Stanbic Bank, PricewaterhouseCoopers Uganda, the East African Development Bank, Uganda Revenue Authority and the Ministry of Finance, Planning and Economic Development.
Prof Mutebile raised objections to interest rate caps, arguing that they could escalate distortions in the credit market, trigger blackmarket activity and deny many borrowers access to credit, according to a source who attended the meeting Enough said!!! But if you listen to some people here, apparently everyone who has some Finance and Economics knowledge is wrong on this issue! And people who know zilch are correct!!! Fait Accompli. What is done is done, for Kenya Banksters at least (in the short term). @MaichBlack if you were at the helm of a Kenyan bank (or in a strategic management position) and kept on with this pointless attitude of railing at unstoppable political forces instead of getting down and dealing with a business environment that has changed, you would lose your job. For Uganda, it is the ominous shot across the bow. By admitting to being under intense pressure, the gov. is telling the banksters to tame their greed or the politicians will tame it for them. He is saying, look across the border, no one thought it could happen but that reality could soon visit us. When you have your boot on millions of necks, fancy demand-supply and other monetary theories will not cut it. It is the caving-the-heads-in-with-a-rungu theory that takes over, damn the consequences. The saying 'beware of a cornered animal' keeps going over the heads of these disconnected and pampered bankers.
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Law Capping interest rates
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