M-Pesa Loans & Fuliza

The quickest loans via M-Pesa are typically from M-Shwari, KCB M-Pesa, or the Fuliza overdraft service. To get started, go to your M-Pesa menu, select "Loans and Savings," and choose to activate one of the services. Once your account is active and you have a loan limit, you can borrow money instantly, and it will be deposited directly into your M-Pesa account.

M-Shwari does not charge an interest rate. Instead, it charges a one-time processing fee of 7.5%. For a KES 1,000 loan, the fee is KES 75. After adding the 20% excise duty on the fee (KES 15), the total amount to repay is KES 1,090.

For a standard 30-day loan, KCB M-Pesa charges a negotiation fee of 8.96% on the loan amount. This fee is also subject to a 20% excise duty. Longer loan terms (e.g., 3 or 6 months) will have different rates.

Fuliza charges a daily access fee, not interest. This fee is tiered: KES 5 per day for overdrafts of KES 101-500, KES 10 per day for KES 501-1000, and so on. There is also a 1% one-time access fee charged when you initiate the overdraft.

To qualify, you must be a Safaricom subscriber for at least six months, have an active M-Pesa account, and save on M-Shwari. Your M-Pesa usage history (deposits, payments, etc.) and savings behavior are used to determine your eligibility and loan limit.

You can increase your M-Shwari loan limit by consistently using Safaricom and M-Pesa services, saving money regularly in your M-Shwari account, and always repaying your M-Shwari loans on time or early.

A zero limit can be due to several reasons: being a new Safaricom user, having an inactive M-Pesa account, having a negative listing with the Credit Reference Bureau (CRB), or having previously defaulted on an M-Shwari loan. Increasing your M-Pesa activity and savings can help change this over time.

Similar to M-Shwari, you generally need to be an active M-Pesa user for at least six months. After activating your KCB M-Pesa account, your limit is assessed based on your past M-Pesa transactions, savings, and borrowing history.

This could be because your account activity does not meet the minimum requirements, you have a low credit score, or you have an outstanding defaulted loan with KCB M-Pesa or another lender that is listed with the CRB.

To increase your Fuliza limit, you should actively use Safaricom services, especially M-Pesa for sending money and making payments. Consistently using and repaying your Fuliza overdraft promptly will demonstrate responsible usage and can lead to a limit review.

Go to your M-Pesa menu on your phone, select "Loans and Savings," then choose "M-Shwari." You will be prompted to read and accept the terms and conditions to activate your account. Once done, you can view your loan limit and start saving or borrowing.

You don't borrow from Fuliza like a normal loan. Simply try to make a transaction (send money or Lipa na M-Pesa) that is more than your M-Pesa balance. If you have a Fuliza limit, a pop-up will appear asking you to confirm if you want to complete the transaction using Fuliza.

First, ensure you have repaid any outstanding Fuliza balance. Once your balance is zero, dial *334#, select "Fuliza M-Pesa," and choose the "Opt-out" option. You will be unsubscribed from the service.

For M-Shwari or KCB M-Pesa, go to the "Loans and Savings" section of your M-Pesa menu and select the respective service. Choose the "Check Balance" or "Loan Status" option. For Fuliza, your outstanding balance is shown whenever you make a transaction or by dialing *334#.

Yes. M-Shwari is a banking product from NCBA Bank. If you default on your loan (fail to pay it back within the specified period, including the grace period), they have the right to forward your details to the Credit Reference Bureau (CRB), which will negatively affect your credit score.

Paying your KCB M-Pesa loan late will result in your loan limit being reduced or frozen. Your details may also be forwarded to the CRB, impacting your ability to get loans from other financial institutions in the future.

No, you can only have one active M-Shwari loan at a time. You must fully repay your existing loan before you can become eligible to borrow another one.

M-Shwari is a product owned and operated by NCBA Bank, offered in partnership with Safaricom PLC, which provides the M-Pesa platform for access.

No, you cannot withdraw Fuliza funds as cash from an M-Pesa agent. Fuliza is an overdraft service designed only for digital transactions, such as sending money to another M-Pesa user or paying for goods and services via Lipa na M-Pesa (Buy Goods and Paybill).

The question of whether Fuliza is halal (permissible in Islamic law) is a matter of debate among Islamic scholars. Some view the daily access fees as a form of interest (riba), which is haram (forbidden). Others may interpret it as a service fee (ujra). Individuals should consult with their trusted religious scholars to form their own conclusion based on their interpretation of Islamic finance principles.