Safaricom, through its mobile money platform M-Pesa, has in recent months rolled out various credit solutions to help small businesses access the credit needed to run their operations.
The telco recently launched three loan products to enable merchants using the Pochi la Biashara and Lipa na Mpesa tills access instant loans of up to Sh400,000 to cover operational expenses and grow their businesses.
Through Taasi Pochi, Fuliza Biashara, and Taasi Till loans, small businesses can access short-term credit at various rates depending on eligibility.
The rates range from 3.85 per cent for a seven-day loan, 4.71 per cent for a 14-day loan, and 6.41 per cent for a 30-day loan.
The rates are applied once on the loan meaning the repayable amount shall be the same irrespective of whether the loan is repaid on the first day or the last date of the repayment period.
Below is the breakdown of the credit solutions:
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Fuliza Biashara
This is an overdraft designed for businesses using Lipa na M-Pesa tills. Through the product, M-Pesa merchants can access an overdraft of up to Sh400,000 to complete their business needs when short of finances.
The Fuliza Biashara overdraft is repaid automatically, meaning incoming payments to the till are first used to clear the overdraft. The product is accessible via the M-Pesa business app or USSD *234#.
Taasi Till loan
This product is designed to help M-Pesa merchants with at least six months of consistent Lipa na M-Pesa activity access loans of up to Sh250,000 to keep their businesses running.
The loan limits accessible is determined by the borrower’s transaction and loan repayment history. The product is accessible via USSD *234# under the “Business Loans” option.
Taasi Pochi
The Taasi Pochi credit solution is designed for business using the Pochi la Piachara platform to collect payments.
Through the product, small businesses can access instant loans of between Sh1,000 and Sh150,000 repayable in between 7 and 30 days depending on the amount borrowed.
To qualify for the loan, businesses must have been using Pochi la Biashara for at least six months.
To apply, merchants can simply dial *334# or navigate to “Business Financing” on the M-Pesa App and select Taasi Pochi.
