How To Increase M-shwari Loan Limit From Zero

M-Shwari is a lending platform in Kenya that combines savings and loan features to offer credit solutions directly from a mobile device.

It is available to registered Safaricom subscribers with active M-pesa lines.

With its partnership with Safaricom, M-Shwari allows users to save, earn interest, and access loans instantly, making financial services more accessible to Kenyans.

A good loan limit on M-Shwari platform is important as it determines the amount of money one can borrow, directly showing that you have previously made repayments on time and transacted with M-pesa services efficiently.

However, starting with a zero loan limit can be frustrating or a major setback, especially in times of urgent need. This article aims to guide those facing a zero M-Shwari loan limit on how to enhance their borrowing capacity.

M-shwari Loan Limit

M-shwari loan limit is the highest loan amount you can get from the platform. You can access as low as Ksh. 100 and up to Ksh 50,000.

M-Shwari platform determines loan limits for its users based on several key factors to evaluate their creditworthiness and ensure responsible lending, and frequent M-Pesa transaction history. This entails the consistent use of M-Pesa services for transactions such as sending and receiving money, paying bills, and buying airtime. These activities give M-Shwari platform insights into your financial activity and your reliability.

Another factor is the timely repayment of previous loans with M-Shwari or other lending platforms monitored by credit reference bureaus. Late payments impact negatively on your loan limit.

Other factors like your savings behavior which demonstrates financial discipline and stability, overall financial health, and your blacklist status also influence your limits.

By understanding and optimizing these factors, you can work towards increasing your M-Shwari loan limits.

How to Check Your M-shwari Loan Limit

To check your M-shwari loan limit, follow the steps below:

Locate your “M-Pesa” menu.
Choose “Loans and Savings”
Select “M-Shwari”
Choose “Loans”
Then, click on where you have “Check limit” and the platform will display your loan limit immediately.

Why Your M-Shwari Loan Limits is Zero

Your M-Shwari loan limit might be zero due to factors like;

Lack of sufficient and consistent transaction history with M-Pesa services.
Poor repayment history with M-Shwari or other financial lenders in Kenya
Minimal or no savings in your M-Shwari account
Not using M-Shwari’s services for up to a period of 6 months.
Being blacklisted for loan default.

How to Unlock M-shwari Loan Limit

To unlock or increase your M-Shwari loan limit, consider these factors:

Increase M-Pesa Activity: We recommend that you regularly use M-Pesa for up to 6 months for transactions like buying and sending airtime and paying bills. Actively sending and receiving money through M-Pesa will help you establish a solid transaction history.
Maintain Positive Repayment Behavior: Ensure to always repay your M-Shwari loans on time and in full. Don’t ever delay, see it as an urgent obligation. Late repayments negatively impact your creditworthiness and can decrease your loan limit on their app.
Save Consistently with M-Shwari: Show M-shwari your responsible financial management by regularly saving money in your account. A high saving amount and consistent savings record can positively influence your loan limit by demonstrating financial stability.

How to Restore M-shwari Loan Limits

To restore your M-Shwari loan limits, do the following things below:

Ensure you have used your line for up to six months
Deposit high amounts and save consistently on M-shwari platform
Send and receive money more on M-pesa as much as you can to keep it running and active.
Use other M-shwari services to keep your line active by topping up data and airtime via Mpesa.
To build a higher loan limit, send large amounts on your Mpesa regularly.
Ensure you don’t have an outstanding loan both with M-Shwari or elsewhere. If you do, pay off all your outstanding loans.
Make sure your name is not blacklisted by CRB.

How to Check your M-Shwari Loan Limits

Follow the steps below to check your M-shwari loan limits:

Locate your “M-Pesa” menu.
Choose “Loans and Savings”
Select “M-Shwari”
Choose “Loans”
Then, click on where you have “Check limit” and the platform will display your loan limit immediately.

Conclusion

In conclusion, increasing your M-Shwari loan limit from zero entails working on your M-Pesa activity, maintaining a positive loan repayment history, and consistently saving a good amount with M-Shwari.

While these actions can improve your chances, M-Shwari doesn’t guarantee you a higher limit when you achieve some of them. It’s important to manage your finances wisely, make use of M-Shwari loans responsibly, and remember that consistent, positive credit behavior is key to your financial life.