The few took the following rational action that numerous young Kenyans getting started on the professions give concern. He purchased a property, using the bank’s staff rates of interest.
The master plan would be to rent out the apartment, positioned in among the city’s gated estates, and make use of the earnings to produce repayments regarding the Sh5.5 million home loan.
2 yrs later, nonetheless, Kimani’s world switched upside down as he ended up being let go by the lender. Yet again he had been no more a member of staff, the attention prices in the home loan spiked through the preferential three % to advertise rates.
This suggested that to clear their home loan, their month-to-month repayments will have to triple in the repayment that is same, by the end of which he could have needed to part with over Sh21 million for the home in place of Sh6.8 million.
Despite a elegance amount of a lot more than per year where he attempted to secure another task and resume repayments, the lender auctioned the home and listed him with credit reference bureau. […]