While mobile loans have solved urgent financial needs, it’s wise if you avoid them as much as you can or at least place self-control mechanisms. Alex, who works as a procurement officer in Nairobi, explains what happened to him after taking Mshwari and avoided paying.
“I remember it was 2016 when I started taking Mshwari.It started as a joke when I needed to fill my gas and I had no money, I went straight to my phone and requested for Mswari loan. Within 2 minutes, I had my loan,which was Ksh 2,500.The money helped me a great deal.
After 2 weeks,I was again broke as I had drank the whole week and never bothered to save any coin. I remembered Mshwari.This time I applied for Ksh 5,000,which I was given promptly since I had paid the previous loan.
After one month,I had a birthday party. Since I had to make my girlfriend happy, I applied for Ksh 10,000.The Company gave me the loan, which I used to make all my visitors smile and dance without any imagination of stress. Since my salary was Ksh 28,000,I wasn’t able to pay the loan in time,Safaricom had to blacklist me.
I thought I was clever. What I did, I disposed the SIM card and went for a new SIM card.I also bought Airtel line ,which I started using to send and receive money-I stopped using MPESA.
The worst moment of my life came this year when I was invited for an interview and I was required to produce Certificate of Good Conduct,Helb Clearance form,Clearance from EACC and CRB.I cleared with Helb but I was stuck.I realize my name had been shared with EACC and CRB for defaulting, I wasn’t able to pay.The Mshwari had accumulated interest which was impossible to pay within a short time.To cut the story short,I lost the job”
Alex’s story is shared by many Kenyans who have fallen to the trap of mbile loans, which are quick to get.
If you are fond of taking mobile loans,here is what you are missing.
Mobile loans are addictive; they can make you become irresponsible in regards to spending. The best thing to do is to avoid them.
These loans also attract highest interest rates. Unlike Saccos and Banks which have fixed interest rates, Mobile loans attract interest rates of up to 50 % of the money you receive as loan.
You also need to be careful with how you pay the loans. The companies that provide these loans have links with CRB and other government offices. In case you default, you may even be denied a VISA.
