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Here Is Why You Need CRB Clearance After Defaulting On Your Loan Repayment

Many Loan defaulters find themselves in a hard place when they default a loan in Kenya. You don’t know where to start and how to get CRB clearance after you have cleared your loan. But most of the loan defaulters, do not know that they need CRB clearance after clearing their loans in the first place.

Having clean records from the A Credit Reference Bureau (CRB) is the gate way to getting back your credit score in good standing and also this helps your your CRB status to change and stand a chance to qualify for more loans.

So why do you need CRB clearance.

  1. CRB Clearance restores your credit worthiness from financial institutions
  2. After clearing with CRB, your Credit score can now improve.
  3. With a good credit score, you stand a high chance of securing loans from mobile money lenders and other financial institutions.
  4. Its only after you have cleared with CRB that you can qualify to apply a CRB clearance certificate.
  5. Clearing with CRB enables you to access loans from financial institutions.
How to get CRB Clearance

If you are wondering what you need to do to get cleared with CRB, then you just need to take a few steps and it will be all done.

Bu first, their are three main CRB clearing companies in Kenya that collects credit information from Kenyans. The have the mandate to rate, list and clear your records using the information they collect from financial institutions. This companies are, TransUnion, Metropol, and Credit Info.

The three works with a number of agents across the country who can easily be reachable and assist you get clearing. This agents work with the above companies to Update your CRB records, Clear your listing status from Non-Performing accounts to Performing account, issue you with a Credit Report as well us processing of CRB clearance certificates. If you are in need of any of the above services you can contact a CRB Agent here.

CRB Companies collect credit information on Monthly basis  on all existing and new credit facilities granted to a person(borrower) by the banks, financial institutions, and other institutions authorized by the Bank (CBK).

What will I need to get CRB Clearance?

First you will need to have settled the loan you had defaulted. Clearance can only be done once the loan has been cleared. Evidence of payment or batch numbers form the money lender can be of great help to fasten the clearance process.

You will then need to contact any of the three companies for assistance. However it will be much faster and efficient if you go through the agent who are easily reachable.

Once you have given  your details, you will be guided through the registration process after which your CRB records will be updated and cleared.

By following the above steps, you records will be cleared and you will be issued with a clearance certificate if you need one. You will also be able to qualify for loans from various financial institution that could not issue you with loans before.

What types of listing status does CRB have?

CRB receives both positive and negative listings. Positive means a loan that is being serviced (loan repayment is consistent) and Negative means a loan that went into default (no payments).

When is a Negative listing submitted to a CRB?

 It takes 90 days for banks and 30 days for mobile lenders after which individuals are notified that they are going to be listed if they don’t make any payment on their loan.

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Majira Media

Keeping you in the loop. I write to share information that matter. From technology to business tips, I share information to inspire and educate