Why it is not that Easier with Equity Bank’s Eazzy Loan
Financial institutions, we are well aware, are out to milk profit from hard pressed customers, and corporate greed is the driving force to this. Witness their well tailored loan products targeting individuals or specific groups like chamas or even low cadres of the unbanked populace that the hoi polloi can access. Anything attractive or well packaged in flowery but enticing language comes at a cost which at most will leave the applicant with a bitter taste in the mouth.
The problem is that many have no time to read the fine print in a lawyerly fashion – and even if they do, they can hardly comprehend anything and rushes to declare they had read and understood all terms and conditions pertaining to the agreement. What does legal jargon serve when one is seeking to address a pressing financial need at hand?
Anyone who has taken an Eazzy loan of late will notice what I had observed. The text confirming successful loan application does not specify the date when payment is due; suffice to say some percentages like loan appraisal fee and insurance amount attached to the principal amount disbursed.
As no reminder texts are sent, one is forced to go to the SIM toolkit and access Equitel menu to check on pending loan balance. And here is where a shocker will come. If, say, you took Sh4, 000, you will be surprised to realize the amount charged as interest has climbed by a funny percentage. For example, in a period of two week, the interest on principal amount will be something close to Sh1800 meaning the bank is is making something out of you at the rate of 1.5% on a daily basis until the loan is repaid in full.
When Kenya Commercial Bank wrongly credited someone's else line and passed the costs to me without my knowledge and had me listed as a defaulter with Credit Reference Bureau, Equity Bank began looking at me with different lenses and marked me as a risky factor. Sample one of their tweet messages when they denied me credit facility when I attempted to apply a loan sometimes in 2017.
Hi, we have scored you for a credit facility but unfortunately you are not able to access it at the moment because we received unfavorable report from the Credit Reference Bureau on your previous borrowing. Kindly get clearance from the Credit Reference Bureau for you to enjoy the facility.
After a back and forth battle lasting a full year to have KCB clear and delink my line from the stranger where the money was wrongly credited (see here: https://paulkariuki.blogspot.com/2017/04/get-yourself-financial-stress-with-kcb.html), I attempted to apply for a loan again with Equity Bank and its from here that I noted strange terms unlike on previous occasions.
When I questioned the unusual discrepancies especially at the abnormal interest rates instead of a fixed amount as interest like in the past, or like what other institutions charges, this is their twitter message to me complete with a link for justification.
There is an additional fee to the loan disbursed. Which includes the insurance fee and the loan appraisal fee which is a maximum of 5% of the loan amount. Kindly check the Eazzy loan terms and conditions as per the below link;http://bit.ly/2lPmS7m .
The problem is, not many are aware of, nor are they informed of such hidden costs and only comes to know of same through bank officials spewing out corporate lingo that more confuses than explains. If you are using a basic features phone with no internet access, pray, how are you to access the PDF format to acquaint yourself with their terms in fine print?
I’m of the opinion my being twice listed with the CRB informed the Equity Bank of the need to charge exorbitant rates for they deem me as a risky factor!
At the end, you will have to surmise that what is good on the face value may not be good at all.