All tools are free — no sign-up, no paywall. Know exactly what a loan costs before you sign. New: compare two loans side by side and see which one costs less over the full term. Check your affordability before applying — lenders use the 40% debt-to-income rule to approve or reject you. Understanding flat rate vs reducing balance interest can save you thousands. Read our guide in the Learn section. CRB listings can block your loan applications for up to 5 years. Learn how the CRB works and how to protect your credit record. All tools are free — no sign-up, no paywall. Know exactly what a loan costs before you sign. New: compare two loans side by side and see which one costs less over the full term. Check your affordability before applying — lenders use the 40% debt-to-income rule to approve or reject you. Understanding flat rate vs reducing balance interest can save you thousands. Read our guide in the Learn section. CRB listings can block your loan applications for up to 5 years. Learn how the CRB works and how to protect your credit record.

1 Terms

Financial Terms Glossary

Every loan term explained clearly, with real examples.

All A C D F G P R S T

P 1 term

Principal

The original amount of money you borrowed, before any interest is added. Your monthly payments go toward reducing the principal plus paying interest charges.

Example: You borrow KES 50,000 from a bank. Your principal is KES 50,000. As you make monthly payments, the principal reduces until it reaches zero.