rate cap

#1
3 judge High Court Bench rules that capping of interest rates under Banking Act Sec 32B is unconstitutional. However, implementation is suspended for 12 months to allow regulator to put in place appropriate mechanisms. More to follow.
 
#6
if the interest rate cap is removed then the high risk borrowers and low risk borrowers will be able to borrow.its only that the high risk borrowers will pay more incase anyone defaults,now thats free market economy.
 
#7
if the interest rate cap is removed then the high risk borrowers and low risk borrowers will be able to borrow.its only that the high risk borrowers will pay more incase anyone defaults,now thats free market economy.
How can a loanee be high risk ,kwani the credit officer didn't conduct enough risk assessment on the loaner,two iko collateral ,na guarantors na due diligence ya the guarantors to pay in case the loanee defaults,kitu the interest rate capping did , as a secondary thing is to cap predatory loaning to people who lack the ability to pay
 
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#8
How can a loanee be high risk ,kwani the credit officer didn't conduct enough risk assessment on the loaner,two iko collateral ,na guarantors na due diligence ya the guarantors to pay in case the loanee defaults,kitu the interest rate capping did , as a secondary thing is to cap predatory loaning to people who lack the ability to pay
those who lack the ability to pay are the ones called high risk. Government will not default, and is ready to pay around 10% interest, you can lose your job, and you are paying only 13%, bank itachagua kukopesha serikali kukuliko
 
#10
those who lack the ability to pay are the ones called high risk. Government will not default, and is ready to pay around 10% interest, you can lose your job, and you are paying only 13%, bank itachagua kukopesha serikali kukuliko
You raise very valid points but you forget ,poor fiscal policy ya government ndio inaleta mashida ya lack of credit to private sector borrowers,we need to cap what the government can borrow eg we say government can borrow say no more than 20%of what it collects and out of that 20% only say 5% can be borrowed locally,or we say no institution that has a bank licence or it's subsidiary can participate in buying government bonds ,this are policy issue that can be sorted out
 
#11
it seems @Karoga doesnt know people are given loans by just using their payslip
Don't confuse responsible lending and predatory lending,how can you as a bank give out loans just because you were shown a payslip , wapi collateral , guarantors ,crb rating na insurance for the loan ,etc banks don't want to to PROPER risk assessment and due diligence and prefer a blanket lending rate instead of a PERSONAL rating based on ACTUAL risk factors not ACADEMIC factors
 
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