Equity Boostika: Unsecured Loans Now Easier for Kenyans

Equity Bank Kenya has entered the overdraft loan market with Boostika, a competitor to Safaricom’s Fuliza. 

This unsecured facility allows customers to overdraw their accounts by up to Ksh 100,000 (USD 625) to complete transactions like shopping, payments, money transfers, and airtime purchases.

“This is a loan solution that allows Equity customers to complete a transaction even when running low on cash when using *247#, Equitel or Equity Mobile App,” according to the lender.

Who qualifies?

• Active Equity Bank customer for at least six months
• Good repayment history
• Transaction history and loan behaviour within limits

How it works

1. When low on funds during a transaction through *247#, Equitel, or the Equity Mobile App, you’ll receive a Boostika prompt with your limit and the needed amount to complete.
2. Accept the Boostika and its terms and conditions.
3. Receive an SMS confirmation and complete the transaction.

Key features

• Instant and convenient: embedded in the transaction process.
• Multiple channels are accessible through *247#, Equitel, or Equity Mobile App.
• Flexible limits are reviewed monthly based on account activity.
• Multiple applications: borrow repeatedly within your limit.
• Borrow only what you need; manage your finances effectively.
• Unsecured loan: no collateral is required.
• 30-day repayment period.

Costs

• Processing fee: 5%
• Insurance: 1%
• Excise duty: 20% of processing fee
• Interest: 18% annual percentage rate (APR)

Compared to Fuliza

• Boostika has a higher effective monthly interest rate (3.7% vs. 2.3%).
• Boostika offers smaller minimum and maximum amounts.
• Boostika requires active account status for at least six months.