Question
Give Five reasons why majority of Kenyans fear to borrow money from commercial Banks.
Answer
i) Banks charge high interest rates for their loans
ii) The procedure involved before one gets a loan is lengthy
iii) Majority of Kenyans cannot offer security for the loans as required by banks
iv) Many people fear the consequences of failing to pay the loan
v) Individuals may have cheaper sources of loans e.g. SACCO's
vi) The rate of interest charged on bank loans are not fixed but can be varied according to prevailing economic situation in the country without consulting the borrower
ii) The procedure involved before one gets a loan is lengthy
iii) Majority of Kenyans cannot offer security for the loans as required by banks
iv) Many people fear the consequences of failing to pay the loan
v) Individuals may have cheaper sources of loans e.g. SACCO's
vi) The rate of interest charged on bank loans are not fixed but can be varied according to prevailing economic situation in the country without consulting the borrower
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