Mshwari is a digital banking service that provides a credit and savings platform to qualified Safaricom subscribers.
Qualification to the service is based on possession of an active subscription usage towards Safaricom’s products including voice, sms, data and financial transactions using the Lipa Na Mpesa and Buy goods options.
Activation to the service is done via the Safaricom menu available under the Sim-toolkit which grants access to both the loans and savings features.
While the loans option is commonly referred to as Mshwari, the savings option is further sub-divided into categories such as: deposit, fixed, lock and target accounts.
Mshwari loans start from Ksh2,000 with a one-off 7.5% facilitation fee repayable in 30 days with an extension period of a similar fee and duration if the loan is unpaid on the 31st day. However, full repayment of the outstanding amount within this period will still result in the denial of a subsequent loan for a period of 30 days.
Prolonged non-repayment for a period of 90 days will lead to the being blacklisted by the Credit Reference Bureaus (CRB)
Therefore, to avoid such scenarios of late repayment brought about due to lack of funds, it is wise to make use of Safaricom’s overdraft facility commonly known as Fuliza.
Fuliza is majorly useful during transactions initiated via Mpesa though it provides no option of withdrawing the overdraft funds.
Despite such a setback, withdrawal is possible only if the amount is sent to a separate number from the one operating Fuliza. The number can be of a different network operator besides Safaricom as long as it provides an Mpesa withdrawal option for unregistered users.
Similarly, this ‘hack’ can also be exploited to pay Mshwari loan using Fuliza.
First and foremost, you need to have 2 Safaricom lines with Fuliza activated. When one line has a pending Mshwari loan, the other line can be used to Fuliza funds to it and vice versa.