M-shwari, mobile loan platform owned by Safaricom and NCBA Bank says that borrowers seeking loans below Ksh2,000 will now have to use the Fuliza overdraft service.
This is after the minimum loan limit was raised to Ksh2,000 from Ksh500.
The M-Shwari Loan Account is a micro-credit product that allows subscribers to borrow money in times of need or to complement their savings towards an investment or enterprise.
A one-time fee of 7.5 percent is levied for each loan.
Consequently, subscribers who fail to qualify will have the option of using the daily overdraft service Fuliza.
Fuliza attracts a daily fee of 1.083 percent.
“M-Shwari serves the critical need for planned credit and the demand for lower ad hoc (impromptu) credit is now better served with Fuliza,” NCBA Group managing director John Gachora told Business Daily.
“We are at the centre of these three products and so we analyse data every day and track behaviours. This is what we are trying to address. Customer qualification for M-Shwari, Stawi and Fuliza will depend on the individual performance on mobile money, saving and on the observed repayment behaviour on all digital loans that they use,” he added.
“Since launching M-Shwari, we have rolled out Fuliza with Safaricom. Fuliza is the one to address this ad hoc immediate credit. So we see the new proposition of M-Shwari being planned short-term.
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