Majority of Kenyans fear to borrow loans from commercial banks because;
- Banks charge high interest rates for their loans
- The procedure involved before one gets a loan is lengthy
- Majority of Kenyans cannot offer security for the loans as required by banks
- Many people fear the consequences of failing to pay the loan
- Individuals may have cheaper sources of loans eg. SACCO‘s
- The rate of interest charged on bank loans are not fixed but can be varied according to prevailing economic situation in the country without consulting the borrower.