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

How to Apply for MShwari Loan, Repay, Save, and Interest Rates

M-Shwari is a Kenyan mobile money lending service owned by both Mpesa and NCBA bank – the merger between NIC Bank and CBA bank. You can apply for an MShwari loan by either using the Mpesa men or through the mySafaricom app, which can be accessed from the Play Store.

To qualify for an MShwari 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 as low as  Ksh. 100, up to Ksh. 50,000 payable in 30 days.

You can also save on Mshwari and earn interest rates on savings from 3% p.a to 5% p.a.

See also: Mshwari Lock Savings Account: How to Save and Earn Interest

Mshwari Loan Interest Rate

MShwari charges a one-time interest rate of 7.5% on any amount borrowed.

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.

How to Activate MShwari on Your MPesa Line

To join M-Shwari on your MPesa enabled line, follow these simple steps:

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

How to Apply for MShwari 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. You will also receive a message indicating the loan amount received and what you will repay.

How to Repay MShwari 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.

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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.