University students in Kenya today are rushing for instant mobile loans to solve their financial problems, all one needs to be eligible for this loans is a smartphone.
My friend Jane (not her real name) is a poet, so yesterday I was reading one of her latest pieces 'my mind bleeds', then suddenly a message pops up on her phone. I couldn't help noticing it so I read it, the message was from one of the lenders saying she should pay her loan of Sh 3700 that was due 2 months ago else her details will be forwarded to CRB.
From the expression on her face, I knew there was no need wasting my breath asking if she will pay the loan, it was clear she was not going to pay the loan any time soon.
But here are some of the problems you might face if you default loans from lenders.
1. Chances of being employed reduce
Many employers today need a clearance certificate from CRB and the for you to be employed. If you are blacklist chances of you being employed reduce drastically compared to someone who pays debts in time.
2. No more loans from any lenders
One day in future you may need a loan to start business or boost existing one. If you have defaulted certain loans, banks and saccos won't lend you money because they have a reason to believe you won't pay back.