M-Shwari is a financial service that integrates both savings and loan facilities for M-PESA and NCBA users, offering a simple and accessible way to manage finances. With M-Shwari, you can start saving with just Ksh 1, and your savings can earn an interest rate of up to 6.3% per annum.
Additionally, M-Shwari provides loans starting from Ksh 100, with an interest rate of 9%, which includes a 7.5% facility fee and a 1.5% excise duty.
What to Expect When Borrowing with M-Shwari
- Loan amounts: Range from Ksh 100 to Ksh 50,000.
- Repayment period: One month.
- Repayment options: You can repay using M-PESA or directly from your M-Shwari account.
How to Qualify for an M-Shwari Loan
To be eligible for a M-Shwari loan, you must meet the following requirements:
- Be an M-PESA subscriber for at least six months.
- Maintain savings in your M-Shwari account.
- Actively engage with other Safaricom services.
Steps to Borrow from M-Shwari
Borrowing with M-Shwari is straightforward. Follow these steps:
- Go to the M-PESA menu.
- Select “Loans and Savings”.
- Choose “M-Shwari”.
- Select “Loan”.
- Request your desired loan amount.
- Enter your M-PESA PIN to confirm the loan.
After submitting, you’ll receive confirmation if you qualify for the loan.
How to Apply for the M-Shwari Loan via USSD
You can also apply for the M-Shwari loan using USSD:
- Dial *848# on your mobile phone.
- Enter your M-Shwari PIN.
- Select option 4: “Loan”.
- Choose option 1: “Request Loan”.
- Select option 1: “Get Cash”.
- Enter the amount you want to borrow.
- Confirm the loan amount.
You will receive a confirmation SMS after your request.
How to Repay Your M-Shwari Loan
Repaying your M-Shwari loan is easy, either through M-PESA or directly from the Timiza app.
Using M-Pesa:
- Open M-PESA and go to “Loans and Savings”.
- Choose “M-Shwari”.
- Select “Pay Loan”.
- Enter the amount you wish to repay.
- Input your M-PESA PIN to complete the payment.
Via the Timiza App:
- Open the Timiza app.
- Scroll down and select “Repay”.
- Choose the repayment amount (or adjust it).
- Click on “Repay now” and follow the payment link.
What Happens If You Don’t Repay Your M-Shwari Loan on Time?
If you don’t repay your M-Shwari loan within 30 days, the bank will automatically extend the outstanding amount, including the facility fee, for another 30 days.
How to Increase Your M-Shwari Loan Limit
To increase your M-Shwari loan limit, you can:
- Save regularly in your M-Shwari account.
- Use M-PESA services more frequently.
- Repay loans promptly to improve your eligibility.
- Keep your M-PESA line active and engage in financial discipline.
How to Unlock Your M-Shwari Loan Limit
Regular savings and timely loan repayments help unlock higher loan limits on M-Shwari. The more you save and manage your loans responsibly, the higher your loan limit will be.
Maximum Loan Limit for M-Shwari
M-Shwari loans range from Ksh 100 to Ksh 50,000, with a one-month repayment period.
Why Is My M-Shwari Loan Limit Zero?
Your M-Shwari loan limit may be zero if your Safaricom line has not met the minimum usage requirement. To qualify for an M-Shwari loan, your line must be active for at least six months.
Can M-Shwari List You on the CRB?
Yes, M-Shwari can report you to CRB if:
- You have overdue amounts.
- A 30-day pre-listing notice is given before submitting your information.
If you repay on time, you will be positively listed.
Can You Top Up an M-Shwari Loan?
Yes, you can top up your M-Shwari loan before the 20th day of your current loan as long as you haven’t reached your loan limit.
Can You Have Multiple M-Shwari Accounts?
Yes, you can activate multiple M-Shwari accounts, each linked to a different mobile number. However, you must repay any existing loans on one account before borrowing on another.
Conclusion
M-Shwari offers a quick, accessible way to borrow money and manage finances using M-PESA. With no paperwork and a simple process, you can apply for loans as low as Ksh 100, and repay them with ease. By saving regularly, repaying loans on time, and using M-PESA services, you can grow your M-Shwari loan limit and enjoy greater financial flexibility.
