M-Shwari is a savings and loan service designed for M-PESA customers, providing an easy and flexible way to both save and borrow.
Users can save as little as Kshs. 1 and access loans starting from Kshs. 1,000 up to a maximum of Kshs. 1 million.
Additionally, users earn interest of up to 6.3% per annum on their savings balance, and it allows users to save for a fixed period.
Once a loan is requested, it is instantly approved and credited directly to your M-PESA account. Loan amounts begin at Kshs. 1,000, with a 9% fee, which includes a 7.5% loan fee and a 1.5% excise duty.
The excise duty is deducted from the loan amount before it is credited to your M-PESA account.
M-Shwari offers a convenient way to manage savings and access quick credit, all through the simple M-PESA platform.
How to Qualify for an M-Shwari Loan
To qualify for an M-Shwari loan, there are a few key requirements. First, you need to be an active M-PESA subscriber for at least six months, which allows the system to assess your transaction history and financial behaviour.
Second, saving regularly on M-Shwari is essential. Even small amounts saved consistently demonstrate financial responsibility and help improve your credit profile.
Finally, actively using other Safaricom services, such as making voice calls, using mobile data, and transacting through M-PESA, is crucial. The system evaluates your overall engagement with Safaricom to gauge your financial activity and reliability.
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How to Increase Your Limit
- Make a habit of saving more in M-Shwari
Regular savings are one of the most effective ways to increase your M-Shwari loan limit. Consistent deposits, no matter how small, show the system that you are financially responsible. The more you save, the higher your eligibility for future loans.
- Utilise M-Pesa Transactions
The more active you are, the better your chances of increasing your loan limit. Use M-Pesa frequently to send money, pay bills, and purchase airtime. This activity helps build your financial profile and signals to M-Shwari that you are a responsible user.
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Avoid Late Payments of Your Loans
Repaying loans on time is crucial to improving your loan limit. If you have borrowed from M-Shwari or other digital lenders like Fuliza, always make sure to repay your loans before or on the due date.
Timely repayments help build trust and demonstrate that you can manage credit responsibly.
- Be an Active Safaricom Line User
An active M-Pesa line is essential for loan eligibility. Additionally, avoid long periods of inactivity, as this can impact your loan approval. Regular use of your line, whether for transactions or basic communication, ensures that you remain eligible for future loans.
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