The switch and save model of financing is among the many upcoming financing options in recent years. It’s important to use the best financial products and services for your situation. But since our situations have likely changed significantly over the past two years, how can you be confident that your previous choices are still up to date?
In general, it’s important to compare the cost you’ll pay for a financial product or service to the value it offers. If you could pay less, enjoy more benefits, or both, it may be worth jumping ship rather than paying the ‘loyalty tax’. Just keep in mind that there could also be fees or charges that could make switching less cost-effective.
This is as good a time as any to compare financing options, such as;
Home Loans
What’s your home loan’s interest rate? You may be able to refinance your mortgage and switch to a home loan with a lower interest rate, allowing you to pay off your property faster and save money on your loan.
Of course, if you’re currently on a fixed interest rate, you may not be able to switch to another lender just yet; at least not without shelling out for some significant break fees.
Remember that there’s more to a home loan than just its interest rate. You could also consider switching mortgage lenders if you want to access home loan features and benefits that may better suit your new situation, or if you’re unhappy with your current lender’s customer service.
We at Mwananchi Credit Limited will help you work out the best options for your needs and walk you through the switching process.
Personal Loans and Car Loans
Do you have an outstanding personal loan or car loan burning a hole in your finances? If you’re struggling to manage these repayments, refinancing a personal loan is an option.
Refinancing a car loan may be an opportunity to upgrade your vehicle to a new model, depending on your financial situation. This could include switching from a petrol car to a hybrid or electric vehicle (EV), which could potentially help to reduce your future ongoing costs. Of course, the higher cost of these cars could mean borrowing more money and being in debt for longer, increasing how much interest you’ll pay over the long term.
If you have multiple outstanding debts, such as smaller personal loans or credit card loans, you may be able to refinance to a debt consolidation personal loan, combining multiple smaller debts into a single repayment, making things simpler and allowing you to make steady progress towards clearing your debt.
Another potential debt consolidation option could be adding your outstanding personal loans or credit card loans onto your home loan. While this could allow you to pay less interest on these debts, it could make it take longer to pay off your mortgage, costing you more over the long term.
Credit Cards
It’s all too easy to build up an impressive credit card debt, and with credit card interest rates generally on the high side compared with other financial products, you could be slugged with significant interest charges if you don’t clear your balance within the card’s interest-free period.
If it looks like your credit card’s interest charges may start growing faster than you can realistically afford to pay off your balance, balance transfer credit cards are available, which may charge 0% interest for a limited time (e.g. 12 months), during which you can work on clearing your debt without worrying about interest charges adding to it.
Insurance
Whether it’s home insurance, health insurance, or car insurance, it’s always worth comparing policies and providers to make sure you’re getting the best deal for your situation. You may be able to enjoy similar levels of service, features, and other benefits while paying less for premiums if you look beyond your current insurance provider.
Remember that there’s more to insurance than its cost. While it may be tempting to lower your sum insured to help shave down your premiums, it may not be worth the risk of finding yourself underinsured when you need it. Plus, some insurers may offer access to exclusive services and other benefits that could significantly increase the value of their policies to you.
Mwananchi Credits’ Switch and Save Model Of Financing
Secured loans provider Mwananchi Credit has launched a new product that seeks to help customers effectively manage their loans without straining themselves.
The Switch and Save loan product enables customers serving loans and unable to reach favourable terms with their lenders to transfer the credit facility to Mwananchi Credit, which takes it up under more favourable terms.
Mwananchi Credit CEO Dennis Mombo said that the lender is aimed at offering much-needed relief to borrowers by enabling them to have more cash and serving their loans simultaneously.
Customers who switch their loans to Mwananchi Credit will enjoy a 10% cash back on repayments, which is then used to top up their loan repayment.
Besides, switch and save customers are allowed to pay back interest only for three months to allow them time to reorganize their finances.
Most borrowers have been hit by COVID-19 economic disruption after either losing their jobs or having their incomes reduced.
Mwananchi Credit is intervening to reset the secured loans to the original status, charging lower interest than the previous lenders, which gives borrowers not only breathing space but, more importantly, access to more cash.
Mwananchi Credit has customized loans on a case-by-case basis. If, say, a civil servant is serving a Ksh1 million loan and paying Ksh10,000 per month, we can take up the loan and reset it back to Ksh1 million under easy-to-manage terms.
Mwananchi Credit is reaching out to clients to understand their financial situations and find a mutual solution for genuine cases.
In the words of our CEO, “It’s not good to maximize profit on the misfortunes of people like everyone is doing, for us, it’s time to give back to our customers. If we help them today they will support us in future.”
