The rising popularity of instant loans in Kenya has made them a convenient and affordable option for quick cash access. Safaricom, the country’s leading telecommunications company, offers various instant loans through its M-Pesa platform.
As of 2023, Safaricom has over 40 million M-Pesa users in Kenya. This means that a large portion of the Kenyan population has access to instant loans through M-Pesa.
This article will discuss the various instant Safaricom M-Pesa loans available in Kenya. We will also discuss the benefits and drawbacks of these loans so that you can decide if they are right for you.
List of instant Safaricom M-Pesa Loans
The following are all the loans one can access directly on M-Pesa:
M-Shwari
Mshwari is a mobile microfinance service launched by Safaricom in 2013. It is one of Kenya’s most popular instant loans, with over 20 million users.
Mshwari offers loans of up to Ksh.50,000 with a repayment period of one month. The interest rate on Mshwari loans is 7.5% per month, which is relatively low compared to other instant loans in Kenya.
To qualify for a Mshwari loan, you must be an M-Pesa customer with at least six months of active usage. You must also have a savings account with Mshwari.
The application process for a Mshwari loan is simple. You can apply for a loan through your M-Pesa menu. Once your application is approved, the loan amount will be deposited into your M-Pesa account immediately.
Mshwari loans are a convenient and affordable way to access cash quickly. However, it is important to repay your loan on time to avoid late fees.
KCB M-Pesa
Another way to access an instant Safaricom M-Pesa loan is through the KCB M-Pesa account.
KCB M-Pesa is a loans and savings product exclusively offered by KCB Bank Kenya Ltd to Safaricom M-PESA customers. It allows you to access loans and savings accounts through your M-PESA menu.
KCB M-Pesa offers loans of up to Ksh.1,000,000 with a repayment period of a month. The interest rate on KCB M-Pesa loans is 8.85% per month, which is relatively low compared to other instant loans in Kenya.
To qualify for a KCB M-Pesa loan, you must be an M-Pesa customer with at least three months of active usage. You must also have a valid ID card and a good credit history.
The application process for a KCB M-Pesa loan is simple. You can apply for a loan through your M-Pesa menu. Once your application is approved, the loan amount will be deposited into your M-Pesa account immediately.
Bloom Finance
Bloom finance is an instant loan provided to buy goods merchants who receive payments through Lipa na M-Pesa facility.
A goods merchant must be eligible for this instant Safaricom M-Pesa loan.
To register for this business loan:
- Dial *234*4#>
- Select M-Pesa bloom
- Add your store number
- Accept the terms and conditions
- Once this is done, you have now officially opted in bloom service
Your loan limit is determined by monitoring your Lipa na M-Pesa till activity. Moreover, one can check their loan limit by dialing *234*4#>.
There are two repayment periods provided for Bloom Loan. A 7 days repayment period attracts a 2% interest rate, and a 30-day loan charges a 7% interest rate.
Like any other loan facility, failure to repay on time will result in you being blocked at the CRB.
Feel free to contact Safaricom in case you need any further clarification through
Phone:
- Merchant:2222
- Agent: 2134
Email: [email protected]
M-Pesa Fanikiwa
Recently, M-Pesa launched a new loan product service on a trial basis to its customers. One can borrow between KES 100 and KES 10,000 at an interest rate of 5% over 30 days.
Therefore, this trial loan facility is slightly cheaper than M-Shwari and KCB M-Pesa. For this initial pilot phase, the people eligible for this loan facility have been handpicked by Safaricom.
Therefore, by default, if you have not been selected, you are not eligible for this loan. This pilot project is meant to run for three months, and its fate will be determined after that.
In all other aspects apart from the interest rate, this loan works the same way as M-Shwari. Therefore if you already have an existing M-Pesa Fanikiwa loan, you are not eligible for another one.
Fuliza M-Pesa
Fuliza M-Pesa is an overdraft loan facility launched by Safaricom in partnership with the Commercial Bank of Africa. The loan facility allows you to complete your Mpesa transactions, even if you have zero or insufficient funds in your Mpesa account.
To enjoy Fuliza M-PESA overdraft services, a customer must be registered on M-PESA with an active Safaricom M-PESA line. Customers will need to opt into the Fuliza service to enjoy the service. To opt in, dial *234# and select Fuliza M-Pesa. Upon opting in, one will be assigned a limit that defines the maximum amount of overdraft they can access.
Fuliza ya Biashara
Fuliza ya Biashara is a credit facility available on the M-PESA Business till. The facility allows business owners to complete transactions by overdrawing their accounts when they have insufficient funds in their M-PESA Business tills.
Fuliza ya Biashara was launched on May 4, 2023, by Safaricom in partnership with KCB Bank Kenya. Over 538,000 businesses that have incorporated till services in their enterprises can leverage Fuliza ya Biashara and access short-term credit of up to Ksh400,000 to support their business requirements.
To access Fuliza ya Biashara, you must have an active Mpesa till number older than six months, counting from the registration date. Unfortunately, Pochi la Biashara users cannot tap into this overdraft facility to cover their financial shortfalls.
Here is how Mpesa business service users can opt-in to Fuliza ya Biashara:
- Dial
*234#from the registered Safaricom Mpesa Till number - Go to
Mpesa Business Till - Select
Business Loans - Choose
Fuliza ya Biashara - Accept the terms and conditions of using the facility
- Enter the user ID
- Enter the user’s PIN
After successfully registering for Fuliza ya Biashara, you will receive a text message indicating your assigned limit.
Benefits of Instant Safaricom M-Pesa Loans
There are many benefits to using instant Safaricom M-Pesa loans. These loans are:
- Convenient: You can apply for and receive a loan instantly through your M-Pesa account.
- Affordable: The interest rates on instant Safaricom M-Pesa loans are relatively low.
- Flexible: You can choose the repayment period that best suits your needs.
Drawbacks of Instant Safaricom M-Pesa Loans
There are also some drawbacks to using instant Safaricom M-Pesa loans. These loans:
- It can be addictive: If you are not careful, you can easily overspend and end up in debt.
- Can have high fees: The fees associated with instant Safaricom M-Pesa loans can be increased.
- Can damage your credit score: If you do not repay your loan on time, it can damage your credit score.
Conclusion
Instant Safaricom M-Pesa loans are a convenient way to access cash quickly. They can be a helpful tool for people who need to cover unexpected expenses or bridge a gap between paychecks. However, using these loans responsibly and repaying them on time is important.
If you are considering an instant Safaricom M-Pesa loan, be sure to research and understand the terms and conditions of the loan. You should also make sure that you can afford to repay the loan on time.
