In the world of mobile banking, where a quick loan is just a dial away, a customer’s query on social media has sparked a crucial conversation about Safaricom's popular loan services, M-Shwari and Fuliza. The customer, who has used their M-Pesa line for over 10 years, expressed concern over having a KSh 8,000 Fuliza limit but a zero M-Shwari loan limit. This article delves into Safaricom's response, the key differences between the two services, and the various factors that determine a customer's loan eligibility.
The customer took to Safaricom's Facebook page to ask, "Nimetumia line ya Safaricom over 10 years, why my M-Shwari is always 000 yet Fuliza is KSh 8,000?" This question, which resonates with many Kenyans, highlights a common misconception that a long-standing M-Pesa line automatically guarantees a high M-Shwari loan limit. However, as Safaricom explained exclusively to TUKO.co.ke, this is not the case. The telecommunications giant clarified that while a long-standing M-Pesa line is a factor, it is not the sole determinant for M-Shwari loan eligibility.
Safaricom explained that M-Shwari and Fuliza have different eligibility criteria, and a high limit on one does not necessarily translate to a high limit on the other. For M-Shwari, the telco emphasized that customers need to actively transact on the account to build a loan limit. This includes utilizing the account's products, such as the short-term savings and the long-term lock savings. "You (customer) should have frequent savings in the account, among other things, including airtime usage and a positive credit score," the telco added. This highlights that M-Shwari is not just a loan service but a savings and credit product, where a customer's savings habits play a significant role in their loan eligibility.
On the other hand, a Fuliza limit is often determined by a customer's M-Pesa usage, including the frequency and volume of their transactions. Since Fuliza is an overdraft service that allows customers to complete M-Pesa transactions even with insufficient funds, it is a separate product with its own credit scoring system.
In addition to savings and M-Shwari transactions, Safaricom also provided a list of other factors that influence a customer's overall loan eligibility. These include the loans allocated elsewhere on your ID, a timely repayment of other loans from institutions like KCB-M-Pesa, and the repayment pattern of Okoa Jahazi and Hustler Fund. The telco maintained that M-Shwari loan limits are automatically reviewed by the system for credit scoring, so the best way to increase your limit is to maintain a good credit score and actively use your M-Shwari account. This provides a clear path for customers who are looking to improve their loan eligibility and better manage their finances.
