2 Terms
Financial Terms Glossary
Every loan term explained clearly, with real examples.
Every loan term explained clearly, with real examples.
An asset you pledge to the lender as security for a loan. If you fail to repay, the lender can seize and sell the collateral to recover their money.
Common collateral in Kenya includes land title deeds, logbooks (vehicle ownership documents), or fixed deposits.
Example: You take a KES 500,000 loan from a bank and use your car logbook as collateral. If you default, the bank can repossess and auction the car.
An institution licensed by the Central Bank of Kenya to collect and share credit information about borrowers. Lenders use CRB reports to decide whether to give you a loan and at what rate.
Being listed negatively on CRB ("blacklisted") can block you from getting credit anywhere in Kenya.
Example: You miss three loan payments at M-Shwari. M-Shwari reports you to CRB. When you apply for a bank loan six months later, the bank checks CRB and sees the negative listing and rejects your application.