In a new dawn, after it was made clear that blacklisting of borrowers by CRB should end, a new strategy has be set by lenders to ensure that they do not get big loses in their businesses.
The lenders have set new measures among them giving loans to their clients at different rates, same lender but different interests rates for different customers.
On this basis, credit history of the borrower, their habit to borrow (whether they borrow from several lenders at a time) and type of job are among the factors that will used to determine how expensive lenders charge borrowers once banks roll out a credit framework that ends the blacklisting of defaulters.
On the other hand, those who have a reputation of repaying loans in good time will enjoy low interest rates, with one’s credit history becoming the new main determinant on cost of loans.
The Central Bank of Kenya will have to approve the proposed credit frameworks that will give banks the go-ahead to start applying the risk-based lending model.
If the new credit framework is approved by the CBK then all those who are on CRB Blacklist will pay higher interest rates for loans from any lender.
