M-Shwari is a mobile banking service provided in partnership with NCBA Bank and is accessible through M-PESA. It enables users to save money and access loans directly from their mobile phones.
This service is available to all M-PESA users. With M-Shwari, customers can save as little as Ksh1 and borrow amounts starting from Ksh1,000 up to Ksh1 million, depending on their credit standing.
Savings on M-Shwari earn interest of up to 6.3% annually. Users also have the option to lock their savings for a fixed period to encourage better saving habits.
When you apply for a loan on M-Shwari, the money is sent instantly to your M-PESA account. A total fee of 9% is charged on each loan, which includes a 7.5% processing fee and a 1.5% excise duty. These charges are deducted before the loan is disbursed.
Steps to Qualify for an M-Shwari Loan
1. Maintain an Active M-PESA Account
You must be an active M-PESA user for at least six months. Your eligibility is determined based on your transaction history and how frequently you use Safaricom services.
2. Save Regularly on M-Shwari
Consistently saving, even small amounts, helps improve your credit profile. Regular savings show financial discipline, which is important in determining loan limits.
3. Use Safaricom Services Frequently
Frequent use of Safaricom services like calls, SMS, mobile data, and M-PESA transactions strengthens your overall credit score within the Safaricom ecosystem.
Tips to Increase Your Loan Limit
1. Save More Frequently
Make it a habit to deposit money into your M-Shwari account. The system uses your saving trends to evaluate your eligibility for higher loan amounts.
2. Transact Regularly with M-PESA
Carry out regular M-PESA transactions such as sending money, buying airtime, and paying bills. The more active your M-PESA usage, the better your credit profile.
3. Repay Loans on Time
Always repay your M-Shwari loans and any other Safaricom-related services like Fuliza on or before the due date. Timely repayment reflects financial responsibility.
4. Keep Your Line Active
Avoid long periods of inactivity. Continuous use of your Safaricom line ensures you remain eligible for M-Shwari services and can qualify for increased loan limits.
