M-Shwari is a mobile banking service offered through M-PESA that allows users to save and access loans directly from their phones. It is available to M-PESA users and is operated in partnership with NCBA Bank.
With M-Shwari, customers can save as little as Ksh1 and borrow starting from Ksh1,000 up to Ksh1 million, depending on their credit profile. Savings earn interest of up to 6.3% per year, and users can also choose to save for a fixed period.
When a loan is requested, it is processed instantly and the funds are sent directly to the user’s M-PESA account. A fee of 9% is charged on each loan. This includes a 7.5% loan processing fee and a 1.5% excise duty, which is deducted before the money is credited.
Steps to Qualify for an M-Shwari Loan
- Maintain an Active M-PESA Account
You need to be an active M-PESA user for at least six months. The system reviews your transaction history and how you use other Safaricom services to determine eligibility. - Save Regularly on M-Shwari
Even saving small amounts regularly builds your creditworthiness. Consistent savings show financial discipline, which helps in qualifying for higher loan amounts. - Use Safaricom Services Frequently
Engaging in activities like calls, SMS, mobile data, and M-PESA transactions helps strengthen your credit score within the Safaricom ecosystem.
Tips to Increase Your Loan Limit
- Save More Frequently
Make it a habit to deposit money into your M-Shwari account. The system considers this when reviewing your loan limit. - Transact Regularly via M-PESA
Use M-PESA often to send money, pay bills, and buy airtime. Increased transaction activity improves your profile. - Repay Loans on Time
Always repay your M-Shwari loans, as well as those from services like Fuliza, before the due date. Timely repayment shows that you are financially responsible. - Keep Your Line Active
Avoid long periods of inactivity. Regular use of your Safaricom line for calls, messages, or mobile money services ensures continued eligibility for M-Shwari services.
