Kenya’s tech giant, Safaricom, has explained why some customers who save through M-Shwari may still not receive a loan limit in response to a customer’s inquiry on August 5.
The clarification came after a customer identified as Princ Raj-jr said they had been saving on M-Shwari but had never been allocated a loan limit.
“I have been saving in M-Shwari but never receive the limit,” the customer inquired.
Responding to the concern, Safaricom apologized for the delay in reviewing the customer’s account.
Why Saving Alone Doesn’t Guarantee an M-Shwari Loan Limit
The company explained that M-Shwari operates as a social collateral service, meaning loan limit reviews are carried out at the bank’s discretion.
Safaricom added that the system does not allow manual adjustment of a customer’s loan limit, even after a request has been made.
“Hi Raj-jr, sorry for the delays in reviewing your limit. Kindly note Mshwari is a social collateral service whereby a review is done at the bank’s discretion, which unfortunately doesn’t allow a manual adjustment,” Safaricom responded.
According to the company, the review considers how customers use their Safaricom line, including airtime purchases and M-PESA transactions.
The assessment also takes into account other loans linked to the customer’s national ID, including whether those loans are repaid on time, as well as a customer’s long-term savings history in both M-Shwari and other financial institutions.
Safaricom said these factors are assessed together before a decision is made on whether a customer qualifies for a loan limit and the amount that may be allocated.
“Also, other than using your Safaricom line [airtime and MPESA], other factors like loans allocated elsewhere on your ID, how timely they are repaid, and long-term savings traced in Mshwari and other financial institutions are considered,” Safaricom said in its response.
About M-Shwari?
M-Shwari is a mobile savings and loan service offered through a partnership between Safaricom and NCBA Bank and is accessible via M-PESA.
Under the partnership, Safaricom provides the technology platform, while NCBA Bank manages the savings accounts, lending services, and regulatory compliance.
The service allows customers to open a savings account directly from their mobile phones, transfer money between M-Shwari and M-PESA, and earn interest on eligible savings balances.
Also Read: How M-Shwari Recovers Loans Borrowed on Recycled Phone Numbers
In addition to offering instant loans to qualifying customers, M-Shwari also enables users to save money toward personal financial goals while earning interest on their deposits.
Eligibility to Have an M-Shwari Account
To be able to save and earn interest with M-Shwari, you must be a registered and active M-PESA subscriber for a minimum of six months.
One should also be at least 18 years old.
Regular use of other Safaricom services, such as voice, data, and M-PESA transactions, also strengthens one’s eligibility.
One must also hold a valid form of identification, which can be a Kenyan national ID, a Kenyan passport, or an Alien ID (resident permit).
How to save with Mshwari
Before you can begin saving with M-Shwari, you need to activate your account. To do this, go to the M-PESA menu on your phone or open the MySafaricom App.
From there, select “Loans and Savings” and then choose “M-Shwari.” You will be prompted to activate your M-Shwari account, after which you should accept the terms and conditions.
Also Read: Safaricom Reveals How Users Can Increase Their Fuliza Limit
Once this is done, you will receive a confirmation message from M-Shwari, letting you know that your account is active and ready for use.
To save with M-Shwari, follow these steps.
- Go to your M-PESA menu on your phone or the MySafaricom App.
- Select “Loans and Savings,” then choose “M-Shwari”.
- Select the option to “Send to M-Shwari” or “Send to Bank”.
- Enter the amount of money you wish to save.
- Follow the prompts to confirm the transaction.
- Confirm the transaction. The money will be moved from your M-Pesa account to your M-Shwari account.
One can save as little as KSh 1.
To earn interest with M-Shwari, there are two main ways to save: the regular M-Shwari account and the M-Shwari Lock Savings Account.
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