Safaricom has detailed five practical steps for M-Shwari customers aiming to increase their loan borrowing limits. This guidance came in response to a customer query on X (formerly Twitter), where a subscriber sought advice on how to improve their loan eligibility.
Understanding M-Shwari
M-Shwari is a joint mobile savings and lending service provided by Safaricom and NCBA Bank Kenya since 2012. It allows users to save from as little as KSh 1 and borrow loans ranging from KSh 100 up to KSh 50,000 based on their creditworthiness. Loans carry a 9% combined charge and must be repaid within 30 days. Savings earn interest of up to 6.3% annually.
Key Steps to Increase Your Loan Limit
- Consistent Savings: Regularly deposit funds into your M-Shwari account, even small amounts, for at least 60 days to demonstrate financial discipline.
- Active M-Pesa Usage: Engage frequently with M-Pesa transactions, including sending and receiving money.
- Timely Repayment of Okoa Jahazi: Repay advances from Okoa Jahazi within five days. Performance on this airtime and data lending product influences your overall credit profile.
- Regular Use of Safaricom Services: Maintain active use of voice, data, and other Safaricom offerings to build a strong relationship with the network.
- Maintain a Clean Credit Record: Ensure your Credit Reference Bureau (CRB) status is clear to support higher borrowing limits.
Safaricom stresses that loan limits are ultimately set at the discretion of NCBA Bank, and they cannot directly intervene or reset limits. Customers receive SMS notifications when their loan limit is reviewed and adjusted.
The company encourages users to view their engagement with M-Shwari as a financial partnership, where consistent and responsible behaviour over time is key to unlocking larger loan facilities.
