Mshwari, a popular mobile savings and loan service by Safaricom, has become an essential tool for many Kenyans who need quick financial assistance. However, repaying your Mshwari loan on time is important to avoid penalties and to increase your loan limit for future borrowing.
Now, Safaricom customers can use Fuliza—a service that allows users to borrow funds when their Mpesa account balance is low—to repay their Mshwari loans. If you’re wondering how to pay your Mshwari loan using Fuliza, keep reading. In this article, we’ll guide you through the process step-by-step.
What is Fuliza?
Fuliza is an overdraft service by Safaricom that allows Mpesa users to continue making transactions even when they have insufficient funds. Fuliza works by automatically borrowing money to complete a transaction, which is then repaid when the user deposits funds into their Mpesa account.
While Fuliza is mainly used to top up Mpesa transactions, it can also be utilized for repaying loans like Mshwari. However, it’s important to note that Fuliza itself does not directly allow you to repay a Mshwari loan. You must use a second phone number to facilitate the payment, which is detailed in the steps below.
How to Pay Mshwari Loan Using Fuliza
Step 1: Get a Second Safaricom Line (Line 2)
To make the payment, you need two Fuliza-activated Safaricom lines:
- Line 1: This line has the pending Mshwari loan that needs repayment.
- Line 2: This line is the one that will be used to send the Fuliza funds.
Step 2: Send Money Using Mpesa
Here’s how to use Line 2 (the Fuliza-activated line) to send money to Line 1 (the line with the Mshwari loan):
- Go to the Mpesa menu on Line 2.
- Select “Send Money” from the menu.
- Enter the phone number associated with the Mshwari balance (in this case, Line 1).
- Enter the amount you wish to send (depending on your Fuliza limit).
- Enter your Mpesa PIN and click “OK”.
Once the money has been sent to Line 1, you can now use the funds to settle your Mshwari loan.
Step 3: Repay the Mshwari Loan
To complete the repayment of your Mshwari loan, follow these steps:
- Go to the Mpesa menu on Line 1 (the line with the Mshwari loan).
- Select “Loans and Savings” from the menu.
- Select “Mshwari”, then choose the Loan option.
- Select “Mpesa” as your payment method (since the money was sent via Mpesa).
- Enter the amount to be paid.
- Enter your Mpesa PIN and click “Send”.
Your Mshwari loan amount will be automatically deducted from your Mpesa account and settled.
Alternative Methods to Pay Mshwari Loan
How to Pay Mshwari Loan Using Paybill
If you prefer to use Paybill for loan repayment, follow these steps:
- Go to the Mpesa menu.
- Select “Loans and Savings”.
- Choose “Mshwari”.
- Select “Pay Loan”.
- Enter the Mshwari loan amount.
- Enter your Mpesa PIN and press “OK”.
- You will receive an SMS confirmation of the transaction.
FAQs: How to Pay Mshwari Loan Using Fuliza
Can I Pay Mshwari Loan Using Fuliza?
Yes, you can pay your Mshwari loan using Fuliza, but only from a different Safaricom line (Line 2). You need to use Fuliza to send money from one Safaricom line to the line associated with your Mshwari loan.
Why Is My Mshwari Limit Set to 0?
If you don’t repay your loan within the designated period, your Mshwari loan limit may be reduced. After 60 days of non-payment, the loan goes into default. If the default period exceeds 90 days, your limit will be set to zero, and you will not be eligible for future loans. You will also be listed as a defaulter in the CRB.
To regain access to your loan limit, repay the outstanding balance and obtain CRB clearance. However, it may take some time for your limit to be restored.
Conclusion
Paying off your Mshwari loan using Fuliza is a practical solution when you’re low on funds, provided you have two Fuliza-activated lines. By following the steps outlined in this article, you can quickly settle your loan and avoid defaulting. Always ensure that you make your payments on time to maintain your credit limit and avoid penalties. If you have any questions or face issues, don’t hesitate to contact Safaricom Customer Care for assistance.
