Home Business Safaricom raises minimum amount you can borrow from M-Shwari...

Safaricom raises minimum amount you can borrow from M-Shwari to Ksh. 2000

M-Shwari – a mobile lending service from NCBA that’s available on Safaricom’s MPESA service will now require customers to borrow a minimum of Ksh. 2000, otherwise your loan request will be completed as an overdraft through Fuliza service. This is an effective increase of four times from the previous minimum. It’s also seen as a technical move from defaults below the amount which according to CBK’s regulations, will not be forwarded to credit reference bureaus.

Up until now, borrowers were able to access loans from Ksh. 500 via M-Shwari. Due to tough economic times which have forced many Kenyans to default their loans, CBK issued new directives exempting anyone defaulting loans from April this year to be listed with credit reference bureaus.

In addition, borrowers who default on loans less than Ksh. 1000 will no longer be listed with credit bureaus, and those who had been listed are to be expunged from their records. Consequently, M-shwari somehow is looking to only offer loans which can be forwarded bureaus in case of defaulters.

Customers who require lesser amounts will now be forced to take Fuliza overdraft which is way more expensive than M-Shwari at a 1.083 percent or 395.2 percent annually. In real life comparison, if you borrowed Ksh. 1000 via M-Shwari, you’d have only paid Ksh. 56.25 while on Fuliza is Ksh. 243.68.

LEAVE A COMMENT

Please enter your comment!
Please enter your name here

Google Assistant to be adopted on high-end 2020 Samsung smart TV’s without additional hardware

Samsung is set to natively support Google Assistant on its high-end smart TV’s released in the course of 2020. This comes as...

Scheduling smart home actions is now possible with Google Assistant’s latest update

A feature that was revealed by Google back at CES 2020 is finally now coming to users in the latest update to...

Huduma cards expected to replace traditional Identity cards as main form of identification in Kenya

Long awaited Huduma Namba that elicited all forms of controversies when launched may be on the way to Kenyans after all. This...

Safaricom uninterested to continue naturing e-commerce site – Masoko, opting for partnerships

Kenya’s e-commerce segment holds the most potential in the retail market, as more Kenyans are now opting for online shopping instead of...

How to videoconference in Google Meet using neat virtual custom backgrounds

The novel corona virus has surely brought a new world order in the ways that we conduct ourselves including how we work....

MacOS Big Sur apparently rendering older macs unusable with black screens

Users within the Apple ecosystem are used to lengthy software support on their devices ranging from iPhones, Apple TV’s, Apple Watches and...

Samsung unveils M5 and M7 smart monitor with both PC and smart TV features

While the current pandemic has altered our once normal way of life, we’re just starting to notice its effect on technology with...

Kenya set to unveil a virtual library for citizens to access timely information from the KNLS

Kenya’s government is prepping to launch a virtual library for citizens to access relevant information that it currently held by the Kenya...