Fuliza is a popular mobile overdraft service provided by Safaricom in collaboration with NCBA and KCB. It allows M-PESA users to complete transactions even if their account balance is insufficient. While Fuliza has made it easier for Kenyans to access quick funds, understanding Fuliza interest rates and how to calculate repayment charges is crucial for managing your loans effectively. In this article, we’ll break down how Fuliza charges interest and how to calculate your repayment for different loan amounts.
What is Fuliza?
Fuliza is an overdraft service that enables M-PESA users to complete transactions when they don’t have enough funds in their Mpesa account. By providing access to instant credit, Fuliza allows users to pay for airtime, make payments, buy goods, and send money even if their balance is insufficient. The service has become popular due to its accessibility and ease of use.
However, before using Fuliza, it’s important to understand how the interest rates work, especially since they can affect your overall repayment amount.
Fuliza Interest Rates on Loans
When you borrow using Fuliza, there are two main charges you should be aware of:
- One-off Access Fee: A flat 1% fee is charged each time you access Fuliza, irrespective of the amount.
- Daily Maintenance Fee: This fee varies depending on the amount of Fuliza you borrow. It’s applied every day, starting from midnight.
If you don’t repay the loan within the set period, you will be charged a 20% excise duty on the access fee, which adds to the overall cost of the loan.
Fuliza Loan Interest Rate Calculator
Here is a Fuliza interest rate calculator to guide you on how to calculate your loan repayment based on different borrowing amounts:
| Amount (Kshs) | Daily Tariff (Kshs) | 20% Excise Duty (Kshs) | Total Charges (Kshs) |
|---|---|---|---|
| 0-100 | 0 | 0 | 0 |
| 101-500 | 2.5 | 0.5 | 3 |
| 501-1000 | 5 | 1 | 6 |
| 1001-1500 | 18 | 3.6 | 21.6 |
| 1501-2500 | 20 | 4 | 24 |
| 2501-70000 | 25 | 5 | 30 |
How Much Does Fuliza Charge for Ksh 1000 and Below?
If you borrow Ksh 1000 or below and repay it within three days, you will not incur the daily maintenance fee. However, the 1% access fee still applies. If the loan is repaid after three days, the daily maintenance fee will apply, and the total charges will increase accordingly.
How to Calculate Fuliza Loan Repayment
For example, if you borrow Ksh 1000 for three days:
- Access Fee: 1% of Ksh 1000 = Ksh 10.
- Maintenance Fee: None if paid within three days.
Total Repayment = Ksh 1000 (borrowed) + Ksh 10 (access fee) = Ksh 1010.
If the loan is repaid after more than three days, the daily maintenance fee will apply, and the total repayment will increase depending on the length of time the loan remains unpaid.
Fuliza Interest Rates for Business Owners (Fuliza ya Biashara)
Fuliza ya Biashara is an overdraft service specifically designed for business owners. With this service, businesses can overdraft between Ksh 1000 and Ksh 400,000. The interest rates for Fuliza ya Biashara are as follows:
| Amount (Kshs) | Tariff (Kshs) |
|---|---|
| 1-999 | 0 |
| 1,000 – 2,499 | 12 |
| 2,500 – 5,000 | 30 |
| 5,001 – 15,000 | 50 |
| 15,001 – 35,000 | 150 |
| 35,001 – 70,000 | 200 |
| 70,001 – 100,000 | 250 |
| 100,001 – 400,000 | 250 |
The service charges a 2% access fee for every disbursement and applies a tiered daily access fee after the first 24-hour grace period.
How to Opt Into Fuliza
To enroll for Fuliza M-Pesa, follow these steps:
- Dial USSD Code:
*334#. - Follow the prompts to opt into the service and check your available credit limit.
If you’re a business owner, you can opt for Fuliza ya Biashara by dialing *234# and following the prompts.
Fuliza Interest Rates – Wrapping Up
Understanding Fuliza interest rates is crucial before using the overdraft service to ensure that you can manage the repayment. While Fuliza’s interest rates are relatively low compared to other credit options in Kenya, failure to repay on time can lead to accumulating charges and increased debt.
Key Points to Remember:
- The 1% access fee is charged every time you borrow using Fuliza.
- A daily maintenance fee applies based on the loan amount and duration.
- 20% excise duty is charged if you don’t repay on time.
- For business owners, Fuliza ya Biashara offers flexible limits and competitive interest rates.
Make sure to keep track of your borrowings and repayments to avoid unnecessary charges and build your credit limit for future use. With Fuliza, you have a flexible and easy way to manage short-term cash flow gaps.
Happy borrowing!
