At the moment you should not go for a loan in the bank. From the experience I have, I can assure you that getting the loan from a bank is very easy, it takes only 3 days, but repaying is painful.
Currently, the economy is not doing well so banks increased interest rates to 30 percent, which is not friendly to anyone who is seeking a loan.
My friend took a loan from a popular bank in 2014 and bought a car with the cash. He was excited to get the loan but three months later he contemplated selling the car to repay the loan. He realized that he could repay the loan plus interest until 2018 and the total amount could double the principal amount. Until now all his energy is directed towards repaying the loan, all his projects stalled. He regrets his decision but he has nothing to do. The interest on the loan keep on increasing monthly and efforts to negotiate with the bank to reduce the rates have been futile.
What I can tell you is that taking a loan in any SACCO in Kenya is the best thing to do.First, interest is 1 % per month, which does not vary depending on the economy. Secondly, they don’t harass customers the way banks do and finally, SACCOs can use your shares to recover their loan in case you default.
I would like to add my weight on the issue of buying a car for personal use.It’s not bad to have a car for personal use but you should consider buying something like real property which can give you value for your money. You are currently working on an NGO, what if your job is terminated when you are still repaying your loan?
SACCOs have built several people in the country through their cheap loans.Even if you are earning Ksh20,000 you can do wonders once you have joined a SACCO.
The best SACCOs to join in Kenya include Stima SACCO,Ushuru SACCO and Harambee SACCO.
Banks are ideal for their employees because they can be given loans with low interest rates.