Why your employer’s financial status can deny you a bank loan

Barclays Bank Thika Branch Manager, Nicholas Njenga (Left) engages with a customer during the ‘Wezesha Biashara na Barclays’ initiative in Thika town.(Photo: File/Standard)

Do you have an excellent credit score but work for an employer likely to sack you anytime? Well, this may soon start impacting negatively on your chances of getting a bank loan.

With cases of customers defaulting on loan repayment rising and the Government having denied banks ability to fully price borrowers’ risk when calculating interest rate, banks are now beginning to get cautious on lending to clients whose chances of being rendered jobless are high.