Kenyans who default on M-Pesa zero-interest loans will be referred to debt collectors for collection and possible auctioning.
This will be the first time that Safaricom will be involving debt collectors and auctioneers. Previously, the telecommunications firm has been relying on Credit Reference Bureau listing to deter defaults.
These loans will allow subscribers to purchase items from Sh. 20 to a maximum of Sh. 100,000 and pay later.
“At any time after an event of default has occurred which is continuing, we may, without prejudice to any other right or remedy granted to us under any law…
take reasonable measures including engaging an independent debt-collection agency, to recover the amount in default (and/or) submit information concerning the event of default to Credit Reference Bureaus, subject to applicable laws,”
Safaricom said in a statement.
A look at how the new M-Pesa zero interest loans will work shows that you will be required to dial Dial *799# and select OPT in. Once they opt-in, customers will be able to perform unlimited transactions up to your credit limit.
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To make repayments, you will need to dial *799#. Your transactions will be displayed, you can pay for only one transaction at a time. Choose the one you want to pay for, and press send.
You will be required to enter your M-Pesa PIN as the money is being paid from the M-Pesa wallet, press send, and a screen will appear for you to accept or decline. Once accepted, a notification will be sent confirming the transaction details, the amount paid and the new credit balance. The same can be done on the app.
For a 30-day loan cycle, the loan is due on the 30th day and likewise, the 7-day loan is due on the 7th day after the loan is given.
By dialing *799#, you will access options that will include, Buy Goods, Pay Bill, Pay Back, Buy Airtime, Pay for Services, My Rewards, My Account, and Opt In as a FARAJA Merchant.
