Is M-Shwari the new shylock?

Long time ago, probably around 8 years ago, driving a BMW or  Mercedes, was considered that you are part of  rich.When the new Hummer came around, it went for around 5M, and only a few bought them.As the years have gone by, more and more Kenyans are earning big bucks, shaking the lifestyles of the middle class resulting to growth in Banks and micro finance institutions.

Kenya has become a den of banks.Banks are everywhere, if you do not see a branch then you will see an bank agent.This tends to tell us a lot about our economy.Middle class people have money, when i say money I mean MONEY..Look at the traffic jams that are ever increasing, because of so many cars,another scenario is the boom of smart phones.Nearly every week, there is a launch of a new smart phones and tabs which cost an average of 20,000 and above for a gadget.

Middle class are spending a lot of money on lavish lifestyles according to Daily nation and some who cannot afford it are trying too hard by taking up loans to buy lavish items according to the standard. Banks have come up with alot of packages to fit the class of people such as Car loans, mortgage loans for the gated house communities that are sprouting everywhere in the country.Banks do not have good reputations as at now, due to the increased loan interest that over stretch consumers, meaning that there is an opportunity for micro finance institutions.

The difference between a bank and a shylock in lay mans language  is that a bank gives you an amount of money, for a particular period at an interest, you pay at reasonable time while a  shylcok is, someone who lends money at excessive rates of interest according to the free Dictionary.

The M-Shwari service is designed to act as a rudimentary credit facility for those who have been locked out of the loans market for lack of collateral and credit history. “M-Shwari will attract a one-time facilitation fee (read interest rate) of 7.5 per cent of the borrowed amount,” Safaricom said in a statement this is according to Business daily.But the period is one month?

How do you repay a lon in 30days? unless you are a shylock



Is mshwari the new shylock? thats the question I have been asking my friends.

Fof those people who do not know who a shylcok is, someone who lends money at excessive rates of interest according to the free Dictionary.