Safaricom, the largest telecommunications company in Kenya, has revolutionized the way Kenyans access financial services through its mobile money platform, Mpesa. Partnering with various financial institutions, Safaricom offers a range of loan products tailored to meet the diverse needs of its customers. These products provide quick and convenient access to credit, enabling individuals and businesses to borrow money for personal use, business expansion, and other financial needs.
Here’s a comprehensive list of Safaricom Mpesa loan products currently available in Kenya:
1. Mshwari
Mshwari, launched in partnership with Commercial Bank of Africa (now NCBA), is one of the earliest and most popular loan products on Mpesa. It allows Mpesa customers to access instant loans directly into their Mpesa accounts.
- Loan Amount: Kshs 1,000 to Kshs 1,000,000
- Repayment Period: 30 days
- Charges: Loan fee of 7.5% and an additional 1.5% excise duty, deducted from the loan amount.
- Unique Feature: Customers can also save money in their Mshwari account, which earns interest over time.
2. KCB Mpesa
KCB Mpesa is a similar service to Mshwari, but in this case, Safaricom partners with Kenya Commercial Bank (KCB) to provide instant loans. It also allows customers to save and access loans, with amounts directly credited to their Mpesa accounts.
- Loan Amount: Kshs 1,000 to Kshs 1,000,000
- Repayment Period: 30 days
- Charges: Facility fee of 8.64%, loan fees of 7.35%, and 1.29% excise duty.
- Unique Feature: KCB Mpesa users can also save and earn interest on deposits, offering a dual savings and loan facility.
3. Fuliza
Fuliza is an overdraft service that allows Mpesa users to complete transactions even when they have insufficient funds in their Mpesa wallet. Unlike Mshwari and KCB Mpesa, Fuliza isn’t a traditional loan but provides immediate short-term credit to cover transactions.
- Loan Amount: Varies based on usage and transaction history.
- Repayment: Automatically deducted from your next Mpesa top-up.
- Charges: A daily access fee is charged depending on the overdraft amount used.
- Unique Feature: The continuous overdraft facility can be used for both sending money and paying for goods and services via Lipa na Mpesa.
4. Halal Pesa
Halal Pesa is Kenya’s first Shariah-compliant digital finance solution offered in partnership with Gulf African Bank. This product caters to Muslim customers who seek financing options that align with Islamic principles.
- Loan Amount: Kshs 1,000 to Kshs 500,000
- Repayment Period: 30 days
- Charges: Since it adheres to Islamic finance principles, Halal Pesa charges a profit margin instead of interest.
- Unique Feature: Shariah-compliant, making it ideal for customers seeking ethical financing according to Islamic law.
5. Bloom Finance
In collaboration with Bloom Credit, Safaricom offers a loan facility targeted at Lipa na Mpesa Buy Goods merchants. This product enables small and medium-sized businesses to access credit for expansion and operational needs.
- Loan Amount: Kshs 5,000 to Kshs 150,000
- Purpose: Stock financing, business operations, and sales expansion.
- Repayment Terms: Customized repayment schedules based on the merchant’s business performance.
6. Faraja Loan
Faraja is a point-of-sale credit service that allows Mpesa users to buy goods and services at partner outlets on credit, without paying interest. Customers can repay the loan within a specified period while incurring only the standard Mpesa transaction fees.
- Loan Amount: Kshs 20 to Kshs 100,000
- Repayment Period: 7 to 30 days
- Charges: No interest charged, only Mpesa transaction fees apply.
- Unique Feature: Faraja provides a 0% interest facility, making it an attractive option for purchasing goods and paying bills at selected merchants.
Expansion of Mpesa Loan Products and Financial Inclusion
Safaricom continues to innovate in the financial sector, driving financial inclusion through its Mpesa platform. These loan products have played a significant role in providing quick access to credit for millions of Kenyans, especially in underserved areas where traditional banking services are limited. The partnership with financial institutions such as NCBA, KCB, and Gulf African Bank allows Safaricom to cater to a wide range of financial needs, from small personal loans to business financing.
Moreover, the introduction of Shariah-compliant products like Halal Pesa and the point-of-sale credit facility Faraja demonstrates Safaricom’s commitment to providing ethical and inclusive financial products. With the continuous expansion of its loan portfolio, Safaricom is poised to remain a key player in Kenya’s financial services landscape.
Safaricom’s diverse Mpesa loan products offer customers a wide range of options to meet their financial needs. From overdrafts and microloans to business credit and interest-free financing, these products underscore Safaricom’s pivotal role in empowering Kenyans economically. As the digital finance space evolves, Safaricom is expected to continue enhancing its product offerings to serve the growing and diverse needs of its customers.
