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    Home BUSINESS Customers Seeking Ksh. 2000 and Below To Use M-Shwari

    Customers Seeking Ksh. 2000 and Below To Use M-Shwari
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    Anyone seeking loans of Ksh.2000.00 and below on M-shwari will no longer be able to get them. Instead, customers will now get such loans on the Safaricom’s Fuliza platform.

    M-Shwari,  a platform owned by Safaricom and NCBA has been giving out loans as little as Sh. 100 to the maximum limit for individual customers determined by transactions made on the platform.

    This now means that to get a loan of less that Ksh. 2000.00, you will need to use Fuliza. This now makes it hard for customers to default on loans as Fuliza automatically deducts the outstanding amounts whenever money is deposited into the Mpesa account.

    This move is seen as a way of reducing the number of loan defaulters who seek below Ksh.2000.00 and who are the majority of borrowers.  However, the move may see many customers shun the below Ksh.2000.00 borrowing.

    “These changes will bring a clear product differentiation for borrowers. Data analysis shows that loan amounts below Ksh. 2000.00 were for unplanned expenditures that are now better served with Fuliza,” said NCBA Group managing director John Gachora while speaking to the Business Daily.

    “Loan amounts below Ksh. 2000.00 were for unplanned expenditures that are now better served with Fuliza,” John Gachora, NCBA Group Managing Director.

    Ksh.81 billion was borrowed through Fuliza in just 6 months, which contributed immensely to M-pesa growth of 12.4% for the year ending December 2019.

    M-shwari attracts a 7.5% monthly interest, hence for a loan of say Ksh.1000.00, you will need to pay 1075.00. On the other hand, Fuliza, changes a daily fee of Ksh.1.038% until the loan is paid in full.

    This clearly shows that Fuliza is more expensive; moreover, you can only use Fuliza when you are short of cash in your Mpesa wallet.

    No one knows how customers will take this latest move by Safaricom and NCBA.

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    Maishah Marsdenhttps://shopinkenya.com/
    Maishah Marsden is the founder of Shopaxo(ShopInKenya.Com) and TechMag( TechMag.Co.Ke)Blog. He is a top Kenyan blogger causally called by his peers as "Life'. If he is not writing your favorite articles, he is with his family. He loves sport and won't mind going on Safari anytime.

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