CRB in simplest terms can be described as the watch-dog for loan defaulters. This is the agency tasked to ensure that you do not get access to any loan anywhere as long as you appear in their blacklist.
This is achieved by circulating loan defaulter details to lenders like banks, micro-finance institutions, SACCOS, mobile lenders etc
As a result, many Kenyans see this akin to a sentence and therefore will do anything to avoid it. However, there are various myths regarding CRB that most Kenyans hold true but in reality, they are not.
Below are some of them.
1. You are blacklisted immediately you default on a loan. – This is not true as one has to have achieved a certain period of non-payment to land in the CRB blacklist. Normally it is usually 90 days.
2. Once you are blacklisted, you will not get a loan for the next 5 years. – This is also not true, once you pay the defaulted loan + penalty, you will access a loan, however, you will remain in their database for the next 5 years.
3. If I am blacklisted by CRB, will I get a certificate of good conduct? – Yes, you can get a Certificate of Good Conduct since it is NOT considered criminal to be in loan default.
4. I have only defaulted in mobile loans, can I get a loan in a REAL bank? – Once you are considered in loan default, your details are shared to all lending institutions & you will not be able to access any loans until you clear with CRB.
5. How does CRB blacklist me yet I do not directly deal with them? – Any lender who you are in default with sends your details to CRB for blacklisting.
6. Failure to repay OKOA JAHAZI can get one blacklisted by CRB. – This is definitely not true.
7. I have not paid my HELB loan, can I get on the CRB list? – NO