THERE are new sheriffs in town. If you haven’t heard of them then it can only imply that you are not keen but soon you will be bump into the posters advertising loans. They have names like incorporated companies but I am not sure if the Registrar of Companies is aware of their existence.
I guess you have seen names like BAFU CHAFU ENTERPRISES LTD, LOANS PAP! Yes, shylocks, they are here and have taken the campus by storm. This is one of the new businesses in campus others include sale of cooked beans and laundry. If you didn’t know then there you are. These are the top three new business ventures in campus in the moment. I have just given you a business idea you can now write a business plan ASAP! He he he!
A Viable business venture?
I haven’t talked to the entrepreneurs to ask them about the profitability of the investment but going by the profits made by commercial banks, it may be lucrative. They are basically a smaller model of a bank; it’s just that they don’t receive deposits. From a small survey I carried out, the enterprises loan amounts ranging from Ksh.50 to Ksh.5000. One of the entrepreneurs said that borrowers are required to pay an interest of 20% of the amount borrowed and should be paid after 72 hours failure to which collateral will be taken. The collateral includes any of the following: phones, sub-woofers, TV sets, and computer systems among others.
To borrow or not borrow…
Most people fall into three financial profiles. They either spend above their means, just what they have or less because they find it difficult to change their spending habits. A recent study carried out in Kenya showed that the Kenyan youth like money. Anyway you may be contemplating whether to take the loan or not but before you do please meditate.
Ask yourself, am I living within my means? Do you I really need the money anyway? Where will I get the money to pay back? Is the expenditure going to be worthwhile? Campus students are associated with lavish lifestyle and which have left other students with nothing to eat. I know of a student who was caught in his room eating raw cabbages stolen from the university farm. Upon investigation it was discovered that the chap had taken his sweetheart for a trip in Mombasa and as a result he had used up all funds from HELB and those from his parents and couldn’t request for more.
Financial Management is paramount…
Some financial analysts argue that the moment you are borrowing, you are living beyond your means. Anyway, am not against borrowing because if anything, the richest men and women in the world today somehow took loans. Before you borrow, exploit all other possible avenues. If we have proper financial management, then these problems like sleeping hungry can be a thing of the past. Don’t give preference to pleasure and luxury instead as the youth we should start learning how to save; it’s never too early to start saving or investing.
The writer is a 3rd year CPR major