Some Safaricom customers have been expressing concerns about their M-Shwari loan limits remaining at zero, even after consistently saving through the platform.
One such user, identified as Shar Dyy on Facebook, recently raised this issue, asking why his loan limit hadn’t increased despite regular savings.
M-Shwari, a mobile-based banking service introduced by Safaricom in partnership with NCBA Bank in 2012, allows customers to save and borrow money directly via M-Pesa.
Safaricom’s Response
In response to the query, Safaricom explained that a customer’s loan limit on M-Shwari is determined by several factors, not just savings. These include:
- Consistently saving and retaining funds in the M-Shwari account over time
- Using other Safaricom services like Voice, Data, and M-Pesa
- Prompt repayment of loans, including OKOA Jahazi
- Maintaining a clean record with the Credit Reference Bureau (CRB)
Requirements for Opening an M-Shwari Account
To use M-Shwari, one must be a registered Safaricom user and an active M-Pesa customer. Valid identification documents such as a Kenyan ID, passport, or alien ID are required during registration.
Loan Terms and Repayment Guidelines
Once a customer qualifies, they can borrow a loan at a 7.5% facilitation fee, repayable within 30 days. Early repayment and regular use of Safaricom services can help increase future loan limits.
If the loan is not repaid within the given period, it may be extended by an additional 30 days, with another 7.5% fee applied to the remaining balance. Any excess payment made will automatically be credited to the customer’s savings account.
What Happens in Case of Default?
Failure to repay an M-Shwari loan may lead to listing with the CRB. Customers are advised to ensure timely repayments to avoid negative listings. If one believes they’ve been wrongly listed, they can write to the credit bureau to dispute the information. The bureau is required to investigate the matter within 21 days and take corrective action if necessary.
