M-Shwari Loans: 31 million Kenyans have so far taken a loan on mobile-based lending platform M-Shwari. This has taken place over the past seven years, during which MSwari has disbursed loans worth Sh. 430 billion.
The mobile platform that is operated by NCBA bank and Safaricom currently has more than 450,000 customers with savings under the M-Shwari Lock account.
“The average savings on the platform is Sh. 8,981 for an average of seven-and-half months, proving an alternative savings solution for M-Pesa customers. The customer deposits on M-Shwari currently stand at Sh. 18.7 billion,” says a report that appeared in the Business Daily.
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According to the Business Daily, M-Shwari charges charges a facilitation fee of 7.5 percent of the loans, which are repaid in one month, taking the annualised cost of borrowing from the platform to a rate of 90 percent.
“The service (M-Shwari) has provided a convenient and secure solution to many, contributing to the economy by promoting inclusion planning and empowering our customers to effectively manage their cash flow,” says NCBA chief executive officer John Gachora.
NCBA bank is the merged entity of former banks NIC and CBA. The merged entity reported a 17.3 percent net earnings growth to Sh. 7.7 billion in the nine months ended September.
The two banks were previously owned by the Kenyatta and Philip Ndegwa families. Other major shareholders in the new entity include former politician Simeon Nyachae who hold a stake worth over Sh. 300 million and businessman Naushad Merali.