Ever had that drowing feeling when you realize you’re short on cash? Maybe an unexpected bill hits, or you need quick funds for your side hustle.
In Kenya, the days of scrambling for loans or facing lengthy bank queues are fading fast. Thanks to M-Shwari, with a few taps on your phone you can have easy access to credit whenever you need it.
Intrigued? You should be!
This post will be your guide to getting that needed loan with M-Shwari. We’ll delve into eligibility, explore the loan application process (it’s shockingly simple!), and shed light on any fees involved.
But wait, there’s more! We’ll also explore some smart tips to ensure you get the most from M-Shwari loans; allowing you to increase your loan limit from zero up to 1 million Ksh. So, ditch the stress and keep reading. M-Shwari might just be the financial product you’ve been waiting for!
About M-Shwari loans
M-Shwari Loans is a service that offers fast and convenient access to interest-bearing savings accounts and mini loans for Kenyans seeking credit and financial services.
M-Shwari Loans is a financial game-changer in Kenya, offering a one-stop shop for both saving and borrowing on your mobile phone. Through M-Shwari, Kenyans can ditch the bank queues and access interest-bearing savings accounts to grow their money, while also having the option to apply for quick and convenient “mini loans” for unexpected expenses or small business ventures
Launched in 2012 through a collaboration between Safaricom, Vodafone, and the Commercial Bank of Africa (CBA), M-Shwari revolutionized the way Kenyans manage their money. Here’s a deeper dive into what makes M-Shwari loans so unique:
- Easy Access: Everything, from applying for a loan to receiving the funds, happens directly through your phone. No filling out lengthy forms or visiting bank branches
- Savings and Loans in One: M-Shwari isn’t just about borrowing. It’s a comprehensive financial product that also allows you to save. You can earn interest on your savings while also having access to quick and easy loans whenever you need them. It’s like having a mini-bank branch right on your phone!
- Focus on Financial Inclusion: M-Shwari was designed specifically to address the gap in financial services for many Kenyans. Unlike traditional banks, M-Shwari uses your M-PESA activity and savings history to determine your loan eligibility. This opens doors for those who might not qualify for loans through conventional channels.
- Rigorous Risk Assessment: Despite its accessibility, M-Shwari employs a strict assessment process to determine your loan limit. This ensures responsible borrowing and helps both you and CBA manage risk effectively. If you’ve ever wondered why your M-Shwari loan limit seems low, it likely reflects your past M-PESA usage and repayment history.
How to qualify for a M-Shwari lian
- Be 18 years and above
- Be an M-Pesa user for at least 6 months
- Save on your M-Shwari account and actively use other Safaricom services
How to apply for M-Shwari loans on the app
- You can access the loan through M-Pesa menu
- Select loans and savings
- Choose M-Shwari
- Select loans
- Request for loans
- Input the amount
- Enter your M-Pesa pin
- The loan amount will be sent to your M-Pesa account plus the facility fee.
Understanding M-Shwari Loan Limit
M-Shwari loans are all about convenience, but how much you can borrow depends on your financial responsibility. Here’s what goes into determining your M-Shwari loan limit:
Building Your M-Shwari “Trust Score”:
Unlike traditional banks with lengthy applications, M-Shwari uses a unique approach. They analyze your mobile financial behavior to create a kind of “trust score”, usually referred to as credit score. This score reflects how likely you are to repay a loan responsibly. Here’s how your financial habits contribute:
- Consistent M-PESA Usage: Regular money transfers, bill payments, and airtime purchases through M-PESA demonstrate responsible financial management and active engagement with the platform. This positively impacts your M-Shwari loan eligibility.
- Building Your Savings Habit: Remember, M-Shwari offers both loans and savings. The more you save in your M-Shwari account, the higher your loan limit could potentially be. This demonstrates financial discipline and responsible saving habits.
- Timely Loan Repayments: A spotless loan repayment history is crucial. Settling previous M-Shwari loans promptly builds trust and demonstrates your commitment to financial responsibility. This can lead to higher loan limits and improved access to credit in the future.
- Maintaining an Active Line: Ensure your M-PESA line remains active. An inactive line can negatively impact your loan eligibility. Regular use of M-PESA signals your active participation in the mobile financial ecosystem.
While M-Shwari loans range from Ksh 100 to Ksh 1 million, your individual limit will likely fall somewhere in between. By consistently practicing these positive financial habits, you can work towards increasing your loan limit and unlocking greater access to credit opportunities.
Building a strong M-Shwari financial profile is a two-way street. It benefits you by allowing for larger loans, but it also helps M-Shwari manage risk and ensure responsible lending practices. So, save consistently, repay on time, and keep your M-PESA line active. By doing so, you’ll unlock the full potential of M-Shwari loans and empower yourself to achieve your financial goal.
Interest rate
The interest rate for M-Shwari is 9%. This comprises of 7.5%. loan fees and 1.5% excise duty.
Loan repayment duration
The loan repayment duration is 30 days or one month.
How to repay M-Shwari loans
You can repay the credit from your M-Pesa account or M-Shwari account.
Here’s how to repay your M-Shwari loan through SMS:
- Open your M-Shwari menu on your phone.
- Look for the “LOAN” option and select it.
- Within the “LOAN” menu, choose “Pay Loan.”
- Enter the exact amount you want to repay towards your loan.
- Key in your M-Shwari PIN.
- Carefully review the confirmation message on your screen. This will typically show something like “Pay Loan Kshs 2,000” (replace 2,000 with your repayment amount).
- If the details are correct, confirm the payment by pressing “OK”.
Conclusion
M-Shwari loan is for everyone who believes in banking made easy. No form to fill and no M-Shwari branch to visit. Just one simple process of downloading the app and signing up on your phone. The loan obtained from the platform can be for emergencies, or financing a project or enterprise.