Your credit rating will soon determine the interest paid on a loan
The CRB has been faulted for retaining loan defaulters in their data base for as long as five years even after they finalise their payments, curtailing them from accessing fresh credit. FOTOSEARCH
The Central Bank of Kenya is banking on risk-based lending as a measure to control the cost of loans once the interest rate cap is lifted.
A day after CBK’s Monetary Policy Committee meeting a week ago, Governor Patrick Njoroge told a press briefing that once the interest cap law is amended, the credit behaviour of an individual — based on their score from the Credit Reference Bureau — will be used to determine what interest rate they will be charged on a loan.
