Apply for M-Shwari loan, save money, repay loan and interest rates

How to Apply for M-Shwari Loan, Repay, Save, and Interest Rates

M-Shwari is a Kenyan mobile money lending service owned by both Safaricom’s Mpesa and NCBA bank – the merger between NIC Bank and CBA bank. You can apply for M-Shwari loan by either using the Mpesa menu from Safaricom’s SIM tool kit (STK) or through the mySafaricom app, which can be accessed from the Play Store.

To qualify for an M-Shwari loan, you must be an active Mpesa user, regularly save on M-Shwari, and be a frequent user of other Safaricom services like voice, data, and Mpesa.

M-Shwari allows you to borrow a minimum of Ksh. 100 and up to a limit of Ksh. 50,000, at a one-time interest rate of 7.5%.

M-Shwari loan repayment period is 1 month.

If you fail to repay your M-Swhari loan in time, first, Safaricom will use part of the amount held in your M-Shwari deposit account as collateral to clear the loan.

If there are no funds in your M-Shwari account, you will incur a rollover fee at a rate of 7.5% of the amount borrowed.

M-Shwari loan defaulters are also not allowed to apply for another M-Swari loan for a period of 30 days in addition to restrictions on accessing Okoa Jahazi services.

Dire consequences will see your details get listed on CRB, subject to full repayment of the loan facility.

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What can you do with M-Shwari Mobile Service?

  • With M-Shwari paperless banking, you can access the following services on your mobile phone:
  • Open and operate M-Shwari account via Mpesa without visiting any bank
  • Transact money between M-Shwari and Mpesa free of charge
  • Save money in your M-Shwari account and earn an interest of up to 6.65% p.a on savings
  • Request for M-Shwari loan between Ksh. 100 to Ksh. 50, 000 depending on your loan limit
  • Lock savings for a fixed period of time, up to 6 months, and earn interest of up to 70% of the CBK rate.

How to Register for M-Shwari Services

To join M-Shwari, do the following:

  1. Go to the Safaricom Mpesa menu
  2. Select My Account and then Select Update Customer Menu (may be optional)
  3. Key in your Mpesa PIN when asked (may be optional)
  4. Then go to the Mpesa Menu
  5. Select Loans and Savings
  6. Next, select M-Shwari
  7. Next, select Activate

Once you have activated your M-Shwari account, you can go ahead and apply for an M-Shwari loan.

To check your loan limit, from M-Shwari menu select Check Loan Limit and Fees. Enter your Mpesa PIN and press OK.

You will receive a text message containing your loan limit and interest fee chargeable.

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How to Apply for M-Shwari Loan

  1. From the Mpesa menu select Loans and Savings
  2. Next, Select M-Shwari
  3. Select Request Loan and enter the amount you wish to borrow, subject to your loan limit
  4. Press OK
  5. Enter your Mpesa PIN and press OK

Your M-Shwari loan amount will be sent to your Mpesa account. The loan amount will include the facility fee.

How to Repay M-Shwari Loan

  1. From the Mpesa menu, select Loans and Savings
  2. Next, select M-Shwari
  3. Select Pay Loan
  4. Select From Mpesa or From M-Shwari, if you have savings
  5. Enter the loan amount and press OK
  6. Enter your Mpesa PIN and press OK
  7. You will receive a text message confirming your M-Shwari loan clearance.

To pay M-Shwari loan for another number, you will have to send the loan amount to that person’s Mpesa account and advice the recipient to follow the above steps to repay the loan.

Benefits of Saving on M-Swari

  • Your loan limit will increase
  • You can earn interest rates between 3% per year and 6% per year on your deposits depending on the amount saved. The more the amount saved, the higher the interest earned
  • No minimum balance required
  • No charges levied on the savings account
  • No charges for moving money from M-PESA to M-Shwari account and vice versa
  • M-Shwari lock savings interest is earned daily but paid out monthly into the lock savings account.
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You can save money by directly depositing to M-Shwari or by opening a Lock Savings Account which holds your money for a period between 1 to 6 months.

Also Read:

  1. How to Apply for Co-operitive Bank Mco-op Cash Loan
  2. How to Apply for Timiza loan, Pay by Mpesa, and Interest Rates
  3. How to Deposit Money from Mpesa to Equity Bank
  4. List of Mobile Loan Apps in Kenya and their Interest Rates