Nairobi — Uptake of consumption loans is set to rise during the festive season according to financial providers.
Speaking to Capital Business, Rafiki DTM General Manager George Mbira says the uptake has been on the rise and will double the normal monthly uptake, in the month of December 2013 and January 2014.
"We get about 20 million a month on consumption loan and in the next two months this digits will double," he said.
Mbira says the loans taken are mainly for school fees and festivities.
"Most of the loans now being taken are utility loans, holiday loans, school fees for university and high school and others to add up due to huge spending over the festivities," he explained.
He however cautions the public to spend within their means this season in order to be ready for January which he termed as a high spending month.
"At this time many people will spend a lot in order to please, it's important not to go beyond your capabilities, stick to your plan, remember even with the festivities responsibilities will be waiting at the door in January," he advised.
He advises that people should always plan early even for holidays, so as its easy for them to go for holiday with ease.
He urged the public to develop the art of saving instead of borrowing money for consumption.
"Borrowing for consumption is a dangerous thing to do because it not money that will create you more money its money that has gone down the drain and we cannot say you have value for that money, it's something you avoid if you can," he said.
He advises people to save at least 10 percent of their salary and urged people to have a financial plan.
"Whatever you want to have or do pan for it and make decisions month on month about your plans getting to your goals because getting to your plans is a process, it's not a one day event," he said.
He is projecting robust growth in the economy in the coming year pointing out that Agriculture, Real estate, Education and Healthcare among the largest gainers in 2014.
"We should also be looking at investing in the financial sector at the Nairobi Securities Exchange (NSE) with more money at hand, more investments the financial Institutions will also be among the top gainers," he said.