Take loans but watch out on this one thing - MPs tell youth

Take loans- MPs tell youth

Loan application forms

Members of Parliament encouraged the youth to take loans from banks and micro-finance institutions.

Led by Women Representatives Rosa Buyu (Kisumu), Beatrice Adagala, (Vihiga) and Christine Ombaka(Siaya), the MPs urged the youth to repay loans once they are given.

Ms Buyu stated: "If CRB lists you as a defaulter then you have lower chances of being given again or qualifying for other loans if they use CRB records as clearing criteria."

Pay loans

She gave an example of Asset financing or simple loans, she disclosed will be harder to come by if the youth in business take loans and default on repayment.

Gender Affairs Chief Administrative Secretary (CAS) Rachel Shebesh, Ombaka and Adagala also stressed the concerns asking youth to take loans and service them.

"Today Banks, SACCOs, MPESA or Mshwari list defaulters on CRB, so you need to clear your name and improve your chances of getting a second loan," Buyu said.

Blacklist

But they won’t lend you money easily if they have every reason to believe that you won’t pay back on scheduled timelines, they told bodaboda riders in Kisumu over the weekend.

In March last year, the Youth Fund Chairman Ronnie Osumba said his organisation was working towards getting people between the ages of 18 and 35 years removed from the CRB blacklist of loan defaulters. 

One is blacklisted after failing to pay back borrowed money by at least 90 days.

This applies to loans from banks, Saccos, Helb loans, mobile money loans such as M-Shwari and even borrowed airtime for mobile phones by telecommunication companies.

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