Bashyafricancredit.co.ke Review

Based on checking the website Bashyafricancredit.co.ke, it appears to offer various lending products, including logbook loans, car financing, title deed loans, LPO financing, cheque discounting, and import financing, primarily targeting Micro, Small & Medium Enterprises MSMEs in Kenya.

Here’s an overall review summary:

Overall Recommendation: Not Recommended for those seeking ethical, interest-free financial solutions.
Primary Business Model: Interest-based lending Riba/usury.
Ethical Compliance Islamic Finance Perspective: Non-compliant due to the explicit mention of Annual Percentage Rate APR and interest, which constitutes Riba.
Transparency: Provides some details on loan types and repayment periods, but specific terms for all products aren’t immediately clear without deeper engagement.
Customer Service: Claims to offer friendly micro-credit officers and quick responses.
Speed of Service: Advertises quick processing, with some loans in as little as 2 hours or 24 hours.
Accessibility: Claims minimal requirements and no CRB checks for some loan types.

While the website highlights quick service and a focus on empowering SMEs, its core offering revolves around interest-based loans.

From an Islamic finance perspective, any transaction involving interest Riba is prohibited due to its exploitative nature and the emphasis on wealth accumulation without tangible productive effort or shared risk.

Therefore, this platform is not recommended for individuals or businesses seeking to adhere to Islamic financial principles.

The concept of earning money from money itself, as opposed to productive trade or partnerships where risk is shared, is a fundamental divergence.

Instead of engaging in interest-based financial services, individuals and businesses should explore Sharia-compliant alternatives that promote ethical wealth creation and shared prosperity.

Best Alternatives for Ethical Financial Solutions Non-Interest Based:

Islamic Microfinance Institutions: These institutions provide financial services adhering to Islamic principles, often focusing on small businesses and individuals in underserved communities. They offer products like Murabaha cost-plus financing, Mudarabah profit-sharing, and Musharakah joint venture, avoiding interest. Examples might vary by region, but a search for “Islamic microfinance ” can yield local options.
Takaful Islamic Insurance: As an alternative to conventional insurance, Takaful operates on principles of mutual cooperation, solidarity, and shared responsibility. Participants contribute to a fund, and claims are paid from this fund. This removes the element of uncertainty and interest found in traditional insurance.
Halal Investment Platforms: These platforms allow individuals to invest in Sharia-compliant equities, sukuk Islamic bonds, and other assets that avoid industries like alcohol, gambling, and conventional finance. Examples include Wahed Invest or Amana Mutual Funds.
Crowdfunding for Businesses: Platforms that facilitate equity-based crowdfunding or profit-sharing agreements can be a viable alternative for businesses seeking capital without incurring interest. Investors share in the profits and losses of the venture. Look for platforms that clearly outline their Sharia compliance.
Ethical Banking Non-Interest Based: While less common in the US, some credit unions or niche banks may offer services that align more closely with ethical principles, even if not explicitly Islamic. This often involves avoiding investments in harmful industries and focusing on community development.
https://amazon.com/s?k=sharia+compliant+peer+to peer+lending: Some peer-to-peer lending platforms are emerging with Sharia-compliant models, where the funding is structured as profit-sharing or Murabaha, rather than interest-bearing loans. This is a developing area worth researching for specific platforms.
Business Mentorship & Advisory Services: Sometimes, the best “financing” comes from optimizing existing resources and strategic planning. Seeking advice from experienced entrepreneurs or business consultants can help identify non-debt solutions for growth and operational efficiency, reducing the need for external financing altogether.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Table of Contents

Bashyafricancredit.co.ke Review & First Look

When you land on Bashyafricancredit.co.ke, the first thing that jumps out is the promise of “Make Your Dreams Real In as little as 24 hours you can get the financing you need.” This immediate appeal to speed and accessibility is a common tactic for lending institutions, especially those catering to the SME sector.

The website is straightforward in its presentation, laying out various loan products right on the homepage, such as “Quick Logbook Loans,” “Car Financing Loans,” and “Title Deed Loans.”

The design aesthetic is clean and functional, prioritizing information over flashy graphics.

It’s built to funnel potential clients towards an “Apply Now” button, which is prominently featured.

The site’s content aims to establish trust by detailing their mission, values, and even featuring “Featured clients success stories,” though these are brief testimonials.

From a technical standpoint, the website appears to load quickly and is navigable, but the fundamental issue lies not in its design or speed, but in the nature of the services it provides.

Understanding the Service Model

Bashyafricancredit.co.ke operates as a microfinance institution.

Their stated purpose is “providing financial empowerment to SMEs through customized microfinance loans.” This implies a focus on small-scale lending to businesses that might struggle to access traditional bank financing. They list a variety of loan products:

Logbook Loans: Loans secured against motor vehicles. They claim “minimal requirements, no CRB check, simple processing procedures.”
Car Financing Loans: Up to 50% financing for showroom, zero mileage, and used cars.
Title Deed Loans: Processed in under two weeks, repayable from 3 to 12 months, with an APR as low as 20% 1.667% per month.
LPO Financing: For businesses that need cash to service contracts awarded via Local Purchase Orders LPOs or Local Supply Orders LSOs.
Cheque Discounting: Getting cash against cheques issued by reputable companies, including post-dated cheques for selected companies.
Import Financing: Lending funds to clear goods from the port to avoid penalties.

The range of services clearly indicates a broad approach to providing liquidity for small and medium-sized enterprises in Kenya.

However, the mention of “APR Is As Low As 20%. 1.667% Per Month” for Title Deed Loans is a critical piece of information that immediately flags the service as interest-based. I-cultiver.com Review

Initial Impressions and Red Flags

While the site offers an impression of efficiency and customer-centricity “We will listen to what you want,” “We will go the extra mile”, the presence of an Annual Percentage Rate APR confirms that these are conventional interest-bearing loans.

For anyone seeking to engage in financial transactions, this is a significant red flag.

From an Islamic finance perspective, all forms of interest Riba, whether excessive or seemingly low, are prohibited.

This prohibition is not just about avoiding exploitation.

It’s a fundamental principle rooted in social justice, risk-sharing, and the ethical circulation of wealth within an economy.

The claim of “no CRB check” for logbook loans might seem appealing to some who have a poor credit history, but it also suggests a higher risk for the lender, which is often compensated for with higher interest rates, even if not explicitly stated for all products.

The testimonials are generic and lack specific details that would allow for independent verification, a common feature on many websites but one to note in a review.

Bashyafricancredit.co.ke Cons

Given the nature of the services offered, the primary disadvantages of Bashyafricancredit.co.ke stem directly from its operational model.

Reliance on Interest Riba

The most significant drawback is the core business model: interest-based lending. The explicit mention of an “APR Is As Low As 20% 1.667% Per Month” for Title Deed Loans confirms that all transactions involve interest.

Ethical Implications: In Islamic finance, Riba interest is strictly prohibited. This prohibition is rooted in principles of fairness, social justice, and economic stability. Interest is seen as extracting wealth without corresponding productive effort or shared risk.
Economic Impact: While it may seem like a quick solution, taking on interest-based debt can lead to a cycle of indebtedness, particularly for small businesses with fluctuating incomes. The fixed nature of interest payments can become a heavy burden during economic downturns or unforeseen circumstances.
Spiritual Ramifications: For individuals and businesses adhering to Islamic principles, engaging in interest-based transactions is considered a grave sin, which impacts both worldly prosperity and spiritual well-being.

Potential for Debt Traps

While the website claims “tailored structured repayment periods” and “free financial and business advice,” the very nature of easily accessible loans, especially those with “no CRB check,” can encourage individuals or businesses to take on debt they might struggle to repay. Mystructuredsettlementcash.com Review

High APRs: Although 20% APR is mentioned for one product, it’s crucial to understand that for microfinance loans, these rates can sometimes be even higher for other products not explicitly detailed, or they might be compounded in ways that make repayment very challenging.
Asset Collateral: Products like logbook loans and title deed loans require tangible assets as collateral. This means if the borrower defaults, they risk losing their vehicle or property, which can have devastating personal and business consequences. This places the entire risk on the borrower, while the lender earns a guaranteed return regardless of the business’s success or failure.
Lack of Transparency Specifics: While the website lists product categories, the detailed terms, conditions, and exact APRs for all products are not immediately transparent on the homepage. This forces potential borrowers to apply or inquire to get the full picture, which can lead to commitments before fully understanding the cost.

Limited Long-Term Value Proposition

While “financial empowerment” is stated as their purpose, the method of achieving it through conventional loans can be counterproductive in the long run.

Focus on Debt, Not Equity: The primary focus is on debt financing, rather than equity or profit-sharing models that foster true partnerships and shared prosperity. This can stifle innovation and genuine growth that comes from shared risk and reward.
No Genuine Partnership: The relationship is purely transactional – lender and borrower – rather than a partnership where risks and rewards are shared. This goes against the spirit of ethical finance that emphasizes mutual support and shared responsibility.
Encourages Quick Fixes: The promise of quick access to funds can sometimes lead to hasty financial decisions without proper long-term planning, exacerbating existing financial problems rather than solving them sustainably.

Bashyafricancredit.co.ke Alternatives

When considering alternatives to Bashyafricancredit.co.ke, the focus shifts entirely to ethical, interest-free financial solutions.

These alternatives are designed to align with principles of social justice, shared risk, and productive investment, fundamentally differing from conventional lending models.

Islamic Financing Institutions

These institutions offer products that adhere to Sharia principles, avoiding interest Riba.

Murabaha Cost-Plus Financing: Instead of a loan, the institution purchases the asset e.g., car, equipment and then sells it to the client at a pre-agreed mark-up. The client repays in installments. This is common for asset acquisition.
- Pros: Transparent pricing, avoids interest, allows clients to acquire necessary assets.
- Cons: Requires a clear asset to be financed, may have higher initial setup costs.
Musharakah Partnership/Joint Venture: Both the financier and the client contribute capital to a venture, and profits are shared according to a pre-agreed ratio, while losses are shared according to capital contribution.
- Pros: True partnership, shared risk, encourages productive investment.
- Cons: More complex to structure, requires detailed agreements on profit/loss sharing.
Mudarabah Profit-Sharing: One party provides capital Rabb-ul-Maal, and the other provides expertise and labor Mudarib. Profits are shared as per agreement. losses are borne by the capital provider, unless due to the Mudarib’s negligence.
- Pros: Leverages expertise, encourages entrepreneurship, no fixed interest burden.
- Cons: Requires trust and clear profit-sharing agreements, losses borne solely by capital provider if no negligence.
Ijara Leasing: An institution purchases an asset and then leases it to the client for a fixed period with rent. At the end of the lease, ownership can be transferred Ijara wa Iqtina.
- Pros: Allows use of assets without upfront purchase, fixed rental payments, often ends in ownership.
- Cons: Requires careful structuring to ensure Sharia compliance, particularly on maintenance and ownership transfer.
Qard Hasan Benevolent Loan: An interest-free loan given for humanitarian or welfare purposes, where only the principal amount is repaid. While not a commercial financing tool, it’s a significant concept in Islamic finance for those in need.
- Pros: No financial burden of interest, acts as a social safety net.
- Cons: Not scalable for large commercial financing, typically for small, emergency needs.

Ethical Microfinance Initiatives

Beyond explicitly Islamic institutions, many ethical microfinance organizations worldwide focus on poverty alleviation and economic empowerment without relying on high-interest rates or exploitative practices.

While not always strictly Sharia-compliant in all aspects, many align with broader ethical finance principles.

Community-Based Lending Groups: These groups often pool resources and provide small, interest-free or very low-cost loans to members for business development.
- Pros: Peer support, local knowledge, lower risk.
- Cons: Limited capital, relies on group dynamics.
Social Investment Funds: Funds that specifically invest in businesses with positive social and environmental impacts, often prioritizing sustainable growth over maximizing financial returns at all costs.

Non-Debt Financing Solutions

Exploring alternative financing methods that don’t involve debt is often the most ethical and sustainable approach for businesses.

Equity Financing: Selling a portion of your business ownership to investors in exchange for capital. This aligns with Islamic principles of risk-sharing.
- Pros: No fixed repayments, shared risk, investors bring expertise.
- Cons: Dilutes ownership, requires giving up control.
Grants and Subsidies: For specific types of businesses, particularly those with social or environmental objectives, government agencies or non-profit organizations may offer grants that do not need to be repaid.
- Pros: Non-repayable funds, supports specific objectives.
- Cons: Highly competitive, strict eligibility criteria.
Bootstrapping and Self-Funding: Growing a business using only personal savings, retained earnings, and minimal external funding. This requires discipline and slow, organic growth.
- Pros: Full control, no debt, strong cash flow focus.
- Cons: Slower growth, limited capital for large-scale operations.
Trade Credit: Utilizing credit extended by suppliers for purchases, allowing businesses to receive goods or services and pay for them later. This is often interest-free if paid within terms.
- Pros: Flexible short-term financing, no interest if managed well.
- Cons: Requires good relationship with suppliers, limited to specific purchases.

The best alternative depends on the specific need, scale of financing required, and commitment to ethical principles.

For those who prioritize Sharia compliance, seeking out dedicated Islamic finance institutions or structuring business activities based on Murabaha, Musharakah, or Ijara models is the most appropriate path.

How to Avoid Interest-Based Loans Altogether

Avoiding interest-based loans is a core principle for individuals and businesses aiming for financial ethicality. Magdragster.com Review

It requires a shift in mindset and a proactive approach to financial planning and resource management.

Strategic Financial Planning & Budgeting

The foundation of avoiding debt, especially interest-bearing debt, lies in robust financial planning.

Detailed Business Plans: For businesses, a comprehensive business plan that includes realistic financial projections, cash flow analysis, and capital requirements can help identify potential funding gaps early. This allows time to explore ethical, non-debt alternatives.
Emergency Funds: Building an emergency fund, both personally and for a business, is crucial. This acts as a buffer against unforeseen expenses, reducing the immediate pressure to take on quick, high-interest loans. Research shows that businesses with adequate cash reserves are significantly more resilient during economic downturns.
Strict Budgeting: Implement strict budgeting practices to manage expenses and maximize savings. Every dollar saved reduces the reliance on external financing. For businesses, this means scrutinizing operational costs, optimizing inventory, and negotiating favorable terms with suppliers.

Embracing Non-Debt Capital Sources

Instead of borrowing, look towards attracting capital through equity or non-repayable means.

Seek Equity Investors: Instead of taking a loan, consider offering a share of your business to investors. These investors become partners, sharing in both the profits and the risks, which aligns perfectly with Islamic finance principles of risk-sharing.
- Angel Investors and Venture Capital: For growth-oriented businesses, angel investors or venture capital firms often seek equity in exchange for capital and mentorship.
- Family and Friends: Early-stage businesses might secure equity investments from family and friends who believe in the venture.
Crowdfunding Equity/Profit-Sharing Based: Explore crowdfunding platforms that facilitate equity investments or profit-sharing agreements, rather than debt-based funding. This allows a large number of individuals to invest small amounts.
Government Grants and Subsidies: Research available grants from government bodies or non-profit organizations. These are often targeted at specific industries, social causes, or innovative projects and do not require repayment.
Personal Savings and Retained Earnings: The safest and most ethical capital source is often your own. Reinvesting profits back into the business and growing organically bootstrapping avoids external debt entirely. This is a common strategy for successful businesses.

Focus on Productive Investment & Ethical Trade

The Islamic economic model emphasizes real economic activity and productive investment over purely financial transactions that generate wealth from money itself.

Murabaha, Musharakah, Ijara: As discussed, these Islamic finance tools are designed to facilitate productive economic activity e.g., purchasing equipment, financing inventory, undertaking joint ventures without resorting to interest. They ensure that wealth is generated through tangible assets and shared risks.
Delayed Payment & Trade Credit: Negotiating favorable payment terms with suppliers trade credit can sometimes provide short-term financing without interest, if paid within the agreed period. This is essentially an interest-free loan from your supplier.
Focus on Value Creation: Instead of relying on quick loans, focus on creating genuine value through your products or services. A strong, valuable offering will naturally attract customers and generate revenue, reducing the need for external financing.
Bartering and Exchange: In some contexts, particularly for small businesses or startups, bartering services or goods can reduce cash outflows and the need for loans.

By adopting these strategies, individuals and businesses can build a financially sound and ethically compliant foundation, ensuring their wealth is generated and circulated in a manner that benefits society as a whole.

The Ethical Implications of Interest in Lending

The ethical implications of interest Riba in lending are profound and stand in stark contrast to the principles of Islamic finance and many other ethical frameworks.

Understanding these implications is crucial for making informed financial decisions.

Exploitation and Unfairness

At its core, interest is often seen as an exploitative practice.

Guaranteed Return Without Shared Risk: The lender is guaranteed a return on their money regardless of whether the borrower’s venture succeeds or fails. This puts all the risk on the borrower, while the lender simply collects a fixed percentage. In contrast, ethical finance emphasizes profit-and-loss sharing, where both parties share the risk and reward.
Burden on the Borrower: Interest disproportionately burdens the borrower, especially during economic downturns or personal hardship. When a business struggles, interest payments can escalate the problem, pushing the borrower into a deeper debt trap. This is particularly relevant for micro-enterprises that Bashyafricancredit.co.ke targets, which often operate on thin margins.
Widening Wealth Gap: The accumulation of wealth through interest-based transactions tends to concentrate wealth in the hands of those who already possess capital. This can exacerbate income inequality, as those with money can earn more simply by lending it, while those without are forced to pay for access to capital, perpetuating a cycle of poverty for some and excessive wealth for others. A 2018 Oxfam report highlighted how economic inequality continues to grow globally, with interest-based financial systems often contributing to this disparity by channeling wealth upwards.

Lack of Productive Investment

Interest-based systems can incentivize financial speculation and unproductive activities over real economic growth.

Money Making Money: The focus shifts from investing in tangible assets, creating goods and services, and generating real economic value, to simply making money from money itself. This disconnects finance from the real economy.
Discourages Entrepreneurship: The fixed burden of interest payments can discourage entrepreneurship, particularly for innovative but risky ventures. Entrepreneurs might hesitate to take on loans if they fear crippling interest payments should their venture not immediately take off.
Economic Instability: The pursuit of ever-higher returns through interest can lead to speculative bubbles and financial instability. The 2008 global financial crisis, for example, highlighted how complex interest-based financial instruments and excessive leveraging contributed to widespread economic collapse. Studies by institutions like the IMF have frequently pointed to the role of excessive debt and financial engineering in economic crises.

Moral and Spiritual Dimensions

Beyond the economic, there are significant moral and spiritual implications. Boweryballroom.com Review

Violation of Divine Guidance: For Muslims, the prohibition of Riba is a direct command from Allah SWT found in the Quran and Sunnah. This prohibition is not arbitrary but is understood as part of a comprehensive economic system designed for justice and well-being.
Erosion of Brotherhood and Cooperation: Interest-based relationships are inherently adversarial – lender vs. borrower. Ethical finance, particularly Islamic finance, promotes cooperation, mutual assistance, and shared prosperity e.g., through partnerships like Musharakah and Mudarabah.
Focus on Material Gain: An economic system built on interest can foster excessive materialism and greed, detracting from higher moral and spiritual pursuits. It can prioritize individual profit over community welfare.

In essence, while interest-based lending like that offered by Bashyafricancredit.co.ke may provide quick access to funds, its underlying mechanism carries significant ethical weight, potentially leading to exploitation, economic instability, and a departure from a just and balanced financial system.

The alternatives, though requiring different structures, offer a path to true financial empowerment rooted in ethical principles.

Understanding APR and Its Implications

When you see “APR Is As Low As 20% 1.667% Per Month” on Bashyafricancredit.co.ke for Title Deed Loans, it’s crucial to understand what Annual Percentage Rate APR truly signifies and its real-world implications, especially in the context of microfinance.

What is APR?

APR stands for Annual Percentage Rate.

It represents the annual cost of borrowing money, expressed as a percentage.

It includes the interest rate plus any additional fees or charges associated with the loan, such as origination fees, administrative costs, or processing fees.

Purpose: The primary purpose of APR is to provide a standardized way for consumers to compare the true cost of different loans. It aims to give a more comprehensive picture than just the nominal interest rate alone.
Calculation: While the exact calculation can be complex, especially with compounding, it essentially annualizes all the costs of borrowing. So, 1.667% per month, compounded monthly, would indeed result in an APR higher than a simple 20% if not calculated correctly, but 20% as a stated APR for a 12-month period would mean the total annual cost is 20% of the principal.

Why 20% APR is Significant for Microfinance

An APR of 20% might seem moderate compared to some payday loans or informal lending, but it’s still a substantial cost, particularly for small businesses and individuals who are the typical clients of microfinance institutions.

Impact on Profitability: For a small business, a 20% annual cost on borrowed capital can significantly eat into profit margins. If a business only generates, say, a 15% return on investment, taking a loan at 20% APR means it’s operating at a net loss on the borrowed funds. This scenario is far too common in the microfinance sector where businesses often have tight margins.
Compounding Effect: While Bashyafricancredit.co.ke states 1.667% per month which is roughly 20% annually, the true cost can escalate if not managed carefully. If a borrower struggles to make payments, late fees, penalties, and the potential for the interest to compound on outstanding balances can quickly inflate the total amount owed, leading to a debt spiral.
Comparison to Ethical Alternatives: In contrast, ethical financing models like Murabaha or Musharakah involve a transparent profit margin or profit-sharing agreement upfront, without the compounding nature of interest. For instance, in a Murabaha, a fixed mark-up is agreed upon, and this mark-up does not change or compound if payments are delayed, although penalty clauses for late payments used for charity, not profit might exist in Islamic finance contracts to encourage timely repayment.

The Problem with “Low” APR in High-Risk Lending

When a lender offers “no CRB check” or quick approval, it typically signals a higher risk profile for the borrowers.

To mitigate this risk, lenders often charge higher interest rates.

Even a “low” 20% APR in such a context implies that the cost of borrowing is substantial precisely because the traditional risk assessment like a CRB check is bypassed. Voluparts.com Review

Target Audience Vulnerability: Microfinance clients often lack access to conventional banking services, may have unstable incomes, or limited financial literacy. Offering quick loans with seemingly “low” APRs, but without full transparency on all terms or a clear understanding of the full repayment burden, can exploit this vulnerability.
Hidden Fees and Charges: While APR should include all costs, it’s essential for borrowers to scrutinize all contract clauses for any hidden fees, penalties for early repayment, or charges for services that might not be included in the stated APR but still add to the overall cost of the loan.

Ultimately, while Bashyafricancredit.co.ke’s transparency in stating an APR for one of its products is a positive sign for consumers comparing conventional loans, it simultaneously highlights the core issue: it operates on an interest-based model.

For those committed to ethical financial principles, any APR, regardless of how “low” it’s advertised, represents a fundamental departure from permissible earnings and transactions.

How to Cancel Bashyafricancredit.co.ke Subscription / Loan

The term “subscription” doesn’t directly apply to loan services like those offered by Bashyafricancredit.co.ke. Instead, you’re dealing with a loan agreement.

Cancelling a loan or terminating an agreement prematurely requires adherence to the terms and conditions outlined in your specific loan contract.

It’s not like unsubscribing from a streaming service.

Understanding Your Loan Agreement

Before attempting to “cancel” or terminate any loan, the absolute first step is to review your signed loan agreement thoroughly. This document is legally binding and will outline:

Repayment Schedule: Your agreed-upon payment dates and amounts.
Early Repayment Clauses: Whether you can repay the loan early, and if there are any penalties for doing so. Some lenders charge a fee sometimes called a prepayment penalty to compensate for the interest they would have earned.
Default Terms: What happens if you miss payments or fail to meet other conditions.
Contact Information: Official channels for communication with the lender.

Steps to Terminate or Pay Off a Loan

Since you can’t simply “cancel” a loan without fulfilling your obligations, here’s a general guide on how you would go about terminating your financial commitment with a lender like Bashyafricancredit.co.ke:

Contact Bashy African Credit Directly:
- Phone: Call their official customer service number: +254 721 902361.
- Email: Send an email to [email protected].
- In-Person Visit: If feasible and you are in Kenya, visit their physical office as listed on their contact page.
- Purpose: Clearly state your intention to pay off your loan early or understand the full outstanding balance. Request a detailed payoff quote.
Request a Payoff Quote:
- Ask for the exact amount required to fully settle your loan on a specific date. This quote should include the principal balance, any accrued interest up to that date, and any applicable early repayment fees.
- Important: Get this quote in writing email is usually sufficient. This provides a clear record.
Understand Any Prepayment Penalties: Tvcmarketing.com Review
- Some loan agreements include penalties for early repayment. These are fees charged by the lender to compensate for the interest they would lose if you pay off the loan before the scheduled term.
- Your loan agreement will specify if such penalties apply and how they are calculated. If they exist, the payoff quote should include them.
Make the Full Payment:
- Once you have the accurate payoff amount and understand any associated fees, make the full payment through the accepted methods e.g., bank transfer, M-Pesa, direct deposit.
- Crucial: Ensure the payment is processed and confirmed.
Obtain a Release/Confirmation:
- After making the final payment, request a formal letter or statement from Bashy African Credit confirming that your loan has been fully paid off and that you have no further obligations.
- If your loan was secured by an asset like a vehicle logbook or title deed, ensure they initiate the process for releasing the collateral and returning your original documents. This is vital to regain full legal ownership of your asset.

Why This is Different from a “Free Trial”

Loan agreements are fundamentally different from free trials. A free trial allows you to use a service for a limited period without charge, with the option to opt-out before being billed. A loan, by its very nature, is a contractual agreement for borrowed funds that must be repaid, typically with interest. There is no “free trial” period where the principal amount doesn’t need to be returned or where interest doesn’t accrue from the start of the loan term.

It’s imperative to manage loans responsibly and understand the full implications before signing any agreement, especially those with interest, which are considered impermissible in Islam.

The goal should always be to avoid such agreements in the first place, or if unavoidable, to pay them off as quickly as possible to minimize the interest burden.

FAQ

What is Bashyafricancredit.co.ke?

Bashyafricancredit.co.ke is a microfinance institution based in Kenya that offers various loan products, including logbook loans, car financing, title deed loans, LPO financing, cheque discounting, and import financing, primarily targeting Micro, Small & Medium Enterprises MSMEs.

Is Bashyafricancredit.co.ke an ethical financial service according to Islamic principles?

No, Bashyafricancredit.co.ke is not considered an ethical financial service according to Islamic principles because it explicitly charges Annual Percentage Rate APR and interest on its loans, which constitutes Riba usury, strictly prohibited in Islam.

What types of loans does Bashyafricancredit.co.ke offer?

Bashyafricancredit.co.ke offers Logbook Loans, Car Financing Loans, Title Deed Loans, LPO Financing, Cheque Discounting, and Import Financing.

What is Riba, and why is it forbidden in Islam?

Riba refers to any increase or addition, specifically in the context of financial transactions, it means interest.

It is forbidden in Islam because it is seen as an exploitative practice that concentrates wealth, creates economic inequality, and does not involve shared risk in productive economic activity. Columbussurfboards.com Review

Can I get a loan from Bashyafricancredit.co.ke without a CRB check?

According to their website, Bashyafricancredit.co.ke claims to offer “no CRB check” for some of its logbook loan products, suggesting easier accessibility for those with adverse credit histories.

What is the APR for loans offered by Bashyafricancredit.co.ke?

For their Title Deed Loans, Bashyafricancredit.co.ke states an APR as low as 20%, which translates to 1.667% per month.

The specific APRs for other loan products are not immediately detailed on the homepage.

What are ethical alternatives to interest-based loans?

Ethical alternatives to interest-based loans include Islamic financing models like Murabaha cost-plus financing, Musharakah profit-sharing partnership, Mudarabah profit-sharing investment, Ijara leasing, and Qard Hasan benevolent loans. Equity financing, ethical crowdfunding, and grants are also viable non-debt options.

Is car financing from Bashyafricancredit.co.ke permissible in Islam?

No, car financing from Bashyafricancredit.co.ke is not permissible in Islam if it involves interest as indicated by the APR mentioned for other loans, as interest-based transactions are forbidden.

How quickly can I get financing from Bashyafricancredit.co.ke?

Bashyafricancredit.co.ke advertises quick financing, with some loans processed in as little as 2 hours Logbook Loans or 24 hours for general financing.

Does Bashyafricancredit.co.ke offer financial advice?

Yes, Bashyafricancredit.co.ke states that they offer “Free financial and business advice” and aim to create customized solutions for their clients.

What is a Logbook Loan?

A Logbook Loan is a type of secured loan where a borrower uses their vehicle’s logbook proof of ownership as collateral.

If the borrower defaults, the lender can repossess the vehicle.

What is LPO Financing?

LPO Financing Local Purchase Order Financing is a type of short-term financing that helps businesses fulfill awarded contracts or purchase orders by providing the necessary working capital to cover expenses before the client pays. Outletpad.com Review

What are the risks of taking an interest-based loan?

The risks of taking an interest-based loan include accruing high debt, potential for a debt trap due to compounding interest, loss of collateral like vehicles or property if payments are missed, and ethical concerns regarding the prohibition of Riba.

How does Bashyafricancredit.co.ke claim to empower SMEs?

Bashyafricancredit.co.ke states its purpose is “providing financial empowerment to SMEs through customized microfinance loans,” implying they aim to support small businesses that may not qualify for traditional bank loans.

What is the repayment period for Title Deed Loans with Bashyafricancredit.co.ke?

Title Deed Loans with Bashyafricancredit.co.ke can be repaid over a period ranging from 3 months to 12 months.

How do I contact Bashyafricancredit.co.ke for inquiries or applications?

You can contact Bashyafricancredit.co.ke via phone at +254 721 902361 or by email at [email protected]. They also have an online application form.

Are there any upfront fees for Bashyafricancredit.co.ke loans?

While the website doesn’t explicitly detail all fees upfront on the homepage, the APR includes various costs beyond just the interest rate.

It’s crucial to inquire about all potential fees before signing any agreement.

Does Bashyafricancredit.co.ke have a physical presence?

Yes, Bashyafricancredit.co.ke has a physical presence in Kenya, as indicated by the “drop by anytime” message and physical address information.

What ethical principles should guide financial decisions?

Ethical financial decisions should be guided by principles of justice, fairness, transparency, shared risk and reward, avoidance of exploitation Riba, and ensuring that wealth circulates productively in the real economy, benefiting society as a whole.

How can a business grow ethically without relying on interest-based loans?

A business can grow ethically by relying on self-funding bootstrapping, equity investments selling ownership shares, profit-sharing agreements Mudarabah, Musharakah, leveraging trade credit, or seeking Sharia-compliant financing from Islamic financial institutions.

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