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 menu or through the mySafaricom app or MPesa app.
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
Before you can apply for Mshwari loan, you must first activate the service on your SIM card.
How to Activate MShwari on Your MPesa Line
To join M-Shwari on your MPesa-enabled line, follow these simple steps:
- Go to the Safaricom Mpesa menu
- Select My Account and
- Select Update Customer Menu
- Key in your Mpesa PIN when asked
- Then go to the Mpesa Menu again
- Select Loans and Savings
- Next, select M-Shwari
- 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.
Read: Zenka Loan App: How to Download, Apply and Repay Loan by App and USSD.
How to Apply for MShwari Loan
- From the Mpesa menu select Loans and Savings
- Next, Select M-Shwari
- Select Request Loan and enter the amount you wish to borrow, subject to your loan limit
- Press OK
- 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.
Mshwari Loan Interest Rate
MShwari charges a one-time interest rate of 7.5% and an additional 1.5% Excise Duty on any amount borrowed.
How to Repay MShwari Loan
- From the Mpesa menu, select Loans and Savings
- Next, select M-Shwari
- Select Pay Loan
- Select From Mpesa or From M-Shwari, if you have savings
- Enter the loan amount and press OK
- Enter your Mpesa PIN and press OK
- You will receive a text message confirming your M-Shwari loan clearance.
To pay the 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.
What Happens if you Default Your MShwari Loan
If you fail to repay your MShwari 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.