A Kenyan identified as Shar Dyy on Facebook has questioned Safaricom about why his M-Shwari limit is still at zero.
According to Dyy, his limit remained zero despite saving on the platform for a while now.
“Why is my M-Shwari limit still zero when I have been saving there for a while?” he asked on Facebook.
M-Shwari is a mobile-based banking service launched by Safaricom in 2012 in partnership with NCBA Bank. This service allows Safaricom users to borrow money directly through their phones via M-Pesa.
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In response to Dyy’s inquiry, Safaricom provided a detailed explanation, stating that saving alone is not the only factor considered when awarding a customer a loan limit on M-Shwari. Other factors include retaining savings for extended periods, paying OKOA Jahazi loans promptly, and maintaining a clean CRB (Credit Reference Bureau) status.
Qualifying for an M-Shwari loan
To qualify for a loan on M-Shwari, you must save regularly, keep your savings for extended periods, and use other Safaricom services like Voice, Data, and M-Pesa. Additionally, ensuring timely repayment of loans (including OKOA Jahazi) is essential. A good CRB record and a history of no loan defaults are also critical.
M-Shwari account requirements
To open an M-Shwari account, you must first be a registered Safaricom subscriber and an active M-PESA customer with a valid identification document. Accepted IDs include the Kenya National ID, Kenyan Passport, or Alien ID (resident permit) registered by the Government of Kenya.
Loan terms and repayment
Safaricom notifies customers once they qualify for an M-Shwari loan limit. If a customer opts to borrow, they are charged a 7.5% facilitation fee, and the loan is expected to be repaid within 30 days.
Repaying loans early can increase your future loan limit. The M-Shwari loan limit is influenced by your loan repayment behavior and usage of Safaricom services.
Late repayment and penalties
If you fail to repay a loan within the 30-day period, your repayment period will be extended for an additional 30 days. During this period, you will incur another 7.5% facilitation fee on the outstanding loan balance.
However, if you pay an excess amount towards your loan, the extra funds will be transferred to your M-Shwari savings account.
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Defaulting on M-Shwari loans
Defaulting on M-Shwari loans may result in being listed on the Credit Reference Bureau (CRB). If you find that you have been listed for an M-Shwari loan you did not take, you need to inform the credit reference bureau in writing that the report contains disputed information.
The credit bureau is required to investigate the issue within 21 days. If the investigation reveals that the information is incorrect, they will correct the records. If no resolution is reached after 21 days, the negative information will be deleted.
