Loan default consequences: What happens if you don’t pay your mobile loan?

Borrowing a mobile loan in Kenya and failing to repay in time has its own consequences. Learn about loan default consequences in Kenya and what as a defaulter you can do to avoid further punishments from CRB agencies.

Mobile and bank Loan default consequences in kenya, CRB
what happens when you default, don’t pay your loan in time (Kenya consequences)/Photo


What does Mobile Loan Default mean

When you borrow money from any mobile money lending platform, SACCO, HELB, you enter into an agreement whereby you promise to repay the loan after a certain period of time. Failing to repay on time, missing to pay or avoiding to pay means you have defaulted.

While some people usually default on loans willingly, there are several genuine reasons as to why you might default on your loan for example, you may have lost your simcard, you may have forgotten that you owe money or even you don’t have the money to repay the loan.

What happens if I don’t pay my mobile loan in Kenya?

If you have been struggling to pay your mobile loan, here are three possible things that will happen:

Extra charges (interest)

The mobile money lending platform that you are using may decide to charge you some additional fees and interest.

Get reported to the Credit Referencing Board (CRB blacklist)

The lender may also decide to report you to the Credit Reference Board (CRB) once listed as a defaulter by the CRB, you will be barred from borrowing money from any money lending platform between a period of not less than five years and not exceeding seven years after which debt that you owe will be considered as having expired. You may also choose to repay your loan and clear your name from the CRB blacklist.

Check out this article on how to check your CRB status in Kenya..

Drop in credit score

Defaulting on your mobile loan may also affect your personal credit score by lowering it. A low credit score will mean that you will only qualify for low loan amounts henceforth.

How to avoid loan default consequences

To avoid defaulting on mobile loans, the following practices are advisable.

  • Borrow only what you can afford to pay back
  • Always have a repayment plan before borrowing
  • Always read the terms and conditions of mobile money lenders

PS. Central Bank of Kenya (CBK) regulates all CRB agencies in Kenya.

You can also read  Instant soft Loans in Kenya: How to apply online for mobile unsecured loans

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    1. I was listed. I payed back the loan short after i had been listed. i got clearance certificate but i wonder why I am still listed even after paying back the money with fine and paying for clearance!!!
      Please advice

      1. Hello Milton,

        Have you contacted the company that gave you the loan. They might be in a position to help. Just inform them that you made your repayment and got cleared.


    2. Am afraid I will be listed in CRB, am making partial payment but lender which is Okash is multiplying the the interest each day, Ksh loan of 1720 I recieved I have to pay 3000, I have given up, they have insisted they will list me in CRB and doubling the amount, idont have cash to clear it but making partial payments

    3. I owe tala a loan n git a message today if I don’t pay they will reportedly me to CRB.Am out of kenya and tala not working here.what do i do.if am reported to crb will it count interest anymore til I come back and repay my loan?

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