Loans -Lenders have mushroomed so many of them around the country and it is safe to choose which one to join and borrow from.
Ideally, it is always important to protect self from just any lender since most are misleading and could leave you in worse situations than before.
Now, a good lender does several things before approving your loan, including checking your credit and ability to repay the cash.
Also, a good lender will only lend you what you can repay. Overburdening you with loans one after another is not quit healthy at all.
Good lenders also disclose the costs of taking the loan and not just loan without providing such important guiding details.
Here’s how to protect yourself from predatory lenders:
Make sure you download the lender’s official App from their website or app store then check the app’s ratings and user reviews perhaps.
Ensure the App offers clear-cut terms and conditions and is transparent about their practices, policies, and fees charged.
Ensure the lender is affiliated with a registered bank or financial institution that’s legal and regulated by the Central Bank of Kenya CBK.
Check whether the lender has a publicly available customer helpline or grievance redressal system so you can contact them to resolve any concerns that could arise.
Last but not least, choose a lender who provides full disclosure of interest rates, prepayment penalties, repayment amounts and provides a degree of protection to borrowers.
