Everyone's been talking about it. It's M-Shwari this, and M-Shwari that. But what does the fine print say?

With advancing technology, lenders are looking for the most convenient ways to get security for loans they give to borrowers. Use of social media profiles by LendUp in the US is an example.

Barclays Bank saw its profit before tax grow 40% in the 3rd quarter of 2012 in a period where banks enjoyed charging high interest rates on new loans borrowed by customers. CBK has since reduced the base lending rate to 11%.

NIC Bank has reported a 35% profit after tax growth in the 3rd quarter of 2012 earning interests on loans in tunes of KES 6.96 billion in the period. Commercial banks charged high interest rates on loans in the period.

Banks still have their base lending rates at between 18.5% and 22.5% despite the Central Bank lowering the base lending rate (CBR) to 11% beginning of November.

Citibank has lowered its base lending rate to 15% down from 19%, a week after Central Bank lowered the CBR by 200 basis points to 11%. Inflation drop (4.14%) and a stable currency advised CBKs decision.