Busting Loan Myths

Let’s dive in!

The first myth says that Debt is always bad. If unatek a loan to buy a new equipment to improve your operations kwa bihashara and in effect profits zigrow, na you didn’t have to wait to save for it for months and months, do you still think debt is always bad? That is NOT TRUE. Make sure you are borrowing for the right reasons.

The other myth ni that Loans are always risky. If umecome up na plan ya what utatumia the loan for, na umeproject clearly vile utapayback that loan, then ushadeal na the risk yenye iko likely to face mtu anatek loan bila having plan yoyote. Therefore, are loans always risky? The answer is, NO.

Next, Some say that You should never borrow money for a new biz. That myth is not true, take for example, Umerealize kuna demand ya smoocha kwa ongoing school games. This means kuna demand iko ready. Na uko na skill ya kuzitengeneza but what hauna ni capital ya kubuy ingredients to take advantage of that opportunity. At this point ukianza kusave you will run out of the opportunity at hand. Borrowing to get the capital to start the business immediately confirms that when uko na plan, opportunity na skill, you can take a loan to start a biz na utailipa. A loan saves you the time that you could have taken through other approaches kama saving to raise the capital.

Another myth ni that, Lenders always want collateral to get a loan. This is not true, kuna types za loan nyingi you can access bila collateral. You don’t need a collateral to get Fuliza, KCB Mpesa loan, Chama loans among many others. Loans zingine ni unsecured na zingine zinategemea your records, in other words your revenue or income. Lenders mostly hutaka collateral when the amount iko juu sana ama you can’t really show vile utalipa the loan.

The other myth is that You can get away with not repaying a loan. My sister, my brother, this is not true. When you don’t pay your loans, unaspoil your credit score, which is what other lenders wanatumia kudetermine whether wewe ni a good borrower or not. Your credit score ikikuwa affected, itakulimit from other opportunities in the future. You might think umehave your way now but unaspoil your chances za kuget ahead in biz down the line. Unarisk pia kukuwa auctioned ama kukuwa prosecuted.

Is there any other myth umeskia kuhusu loans that is making you to be afraid of loans? Please share in the comment section!