M-Shwari is a financial service that integrates savings and loan facilities for M-PESA and NCBA users, offering a simple and accessible way to manage their finances. With M-Shwari, you can begin saving with just Kshs. 1, and these savings can earn interest rates of up to 6.3% per annum.
Additionally, M-Shwari provides loans starting from Kshs. 100, with an interest rate of 9%. This rate is composed of a 7.5% facility fee and a 1.5% excise duty.
What to Expect When Borrowing with M-Shwari
- – M-Shwari loan amounts range from Kshs. 100 to Kshs. 50,000.
- – The repayment period is one month.
- – M-Shwari repayment options include M-PESA or your M-Shwari account.
How to Qualify for an M-Shwari Loan
- – Be an M-PESA subscriber for at least six months.
- – Maintain savings in your M-Shwari account.
- – Actively engage with other Safaricom services.
Steps to Borrow from M-Shwari
- Go to the M-PESA menu.
- Choose “Loans and Savings.”
- Select “M-Shwari.”
- Choose “Loan.”
- Request your desired loan amount.
- Enter your M-PESA PIN to confirm.
How to Repay an M-Shwari Loan
- Access the M-Shwari menu.
- Select “Loan.”
- Choose “Pay Loan.”
- Enter the repayment amount.
- Input your PIN.
- Review the confirmation message.
- Press “OK” to complete the payment.
How to Pay Your M-Shwari Loan Using M-PESA
- Open the M-PESA menu.
- Select “Loans and Savings.”
- Choose “M-Shwari.”
- Select “Pay Loan.”
- Decide whether to pay from your M-PESA account or KCB M-PESA account.
- Enter the amount you wish to repay and follow the prompts to complete the transaction.
What Happens If You Don’t Repay Your M-Shwari Loan on Time?
If you fail to repay your M-Shwari loan within 30 days of disbursement, the bank will automatically extend the outstanding amount, including the facility fee, for another 30 days.
How to Increase Your M-Shwari Loan Limit
- – Save Regularly: Frequent savings boost your loan limit.
- – Use M-PESA Actively: Engage regularly with M-PESA services.
- – Repay Loans Promptly: Timely repayments improve your eligibility.
- – Maintain an Active Line: Keep your M-PESA line active.
- – Practice Financial Discipline: Manage your savings and loans responsibly.
How to Unlock Your M-Shwari Loan Limit
Regular savings in your M-Shwari account demonstrate financial discipline, which can lead to a higher loan limit. Additionally, repaying your loans on time builds your credibility, which M-Shwari considers when setting your loan limit.
Maximum Loan Limit for M-Shwari
M-Shwari offers loans ranging from Kshs. 100 to Kshs. 50,000, with a one-month repayment period.
Why Is My M-Shwari Loan Limit Zero?
Your M-Shwari loan limit might be zero if your Safaricom line hasn’t met the minimum M-PESA usage requirement. To qualify for an M-Shwari loan, your line must be active for at least six months.
Read: The Top 10 Loan Apps With the Lowest Interest Rates in Kenya
Can M-Shwari List You on the CRB?
Yes, all M-Shwari customers are listed with the CRB under the following conditions:
- – Positive Listing: For customers who have no overdue amounts.
- – Negative Listing: For customers with overdue amounts.
A 30-day pre-listing notice period applies.
Can You Top Up an M-Shwari Loan?
Yes, you can increase your M-Shwari loan before the 20th day of your current loan, as long as you haven’t reached your loan limit.
Can You Have Multiple M-Shwari Accounts?
Yes, you can activate multiple M-Shwari accounts, each linked to a different mobile number. However, you must repay any existing loans on one M-PESA account before borrowing on another.