Financial institutions barriers

In the world there are a lot of financial institutions. They can be positive or negative towards the society depending on the trust of the institution on the service’s they offered.

This institutions have created a great part in employment and support for growth of small scale businesses. They have been benefit to the farmer’s, large scale businesses to support there daily running activities.

We had visited the faulu bank in Kenya to find out why they had decided to close various branches which were close to the people in our rural area. The teller was not shy to convey that the business was down to meet the running overheads of offices that’s why they consolidated. We were treated well. The problem of the institution was loan financing mechanisms.

Some clients were really complaining on the loan interest been pilled to there accounts terming them as penalties. They forget some clients are not business people’s. They expect monthly salary so if they delay it shows employer has not released the funds. They take advantage to pille penalties making it difficult for loan completion.

Most of the faulu the bank loan defaulters are  employed county staff’s. There loans can never end due penalties are higher than monthly installments. One month salary cannot cover the penalty of default and pay loan instalment.

It is just problem that cannot be solved easily due to the set policies of the organization.  We are looking forward the institution to get way forward to assist it’s member’. If the situation is solved can be beneficial to all working class people’s. If care is taking to the member’s the bank is sure to return in business by gaining trust with mb