Apps offering CRB-free loans in Kenya might not necessarily charge higher interest rates by default. However, some factors might affect the interest rates:
Risk Assessment Model: Apps offering loans without considering CRB records often use alternative methods for risk assessment. If their risk assessment models consider applicants with poor credit histories as higher risks, they might charge slightly higher interest rates to offset the risk.
Operational Costs: Some lenders might have higher operational costs due to employing alternative credit assessment methods or dealing with potentially riskier borrowers, leading to slightly higher interest rates.
Loan Amount and Repayment Period:Loans with longer repayment periods or larger loan amounts might come with slightly higher interest rates, regardless of the credit assessment methods used.
Competition: The interest rates could also be influenced by the competition among loan apps. If multiple apps are offering similar services without CRB checks, they might strive to keep interest rates competitive.
Market Demand:Interest rates might also be affected by market demand. Higher demand for CRB-free loans might allow lenders to charge higher rates.
Applicants should carefully review the terms and conditions of the loan app, including the interest rates, fees, and repayment structures, before applying for a loan, regardless of CRB checks. Comparing multiple lenders will help find the most favorable terms for individual financial needs.
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