Answers to the M-Swari frequently asked questions

What is the M-Shwari Service?

This is a paperless banking service offered through M-PESA that will;
• Enable you open and operate an M-Shwari bank account through your mobile phone, through M-PESA, without having to visit any bank to fill out bank account opening forms.
• It provides you the ability to move money in and out of your M-Shwari savings account to your M-PESA account at no charge.
• It gives you an opportunity to save as little as Ksh.1 and earn interest on your saving balance. This cash is moved into the savings account using your handset via the M-PESA Menu.
• Enable you access micro credit product (loan) of a minimum of Ksh.100 anytime and receive your loan instantly on your M-PESA account.

What is the M-Shwari Service?

This is a paperless banking service offered through M-PESA that will;
• Enable you open and operate an M-Shwari bank account through your mobile phone, through M-PESA, without having to visit any bank to fill out bank account opening forms.
• It provides you the ability to move money in and out of your M-Shwari savings account to your M-PESA account at no charge.
• It gives you an opportunity to save as little as Ksh.1 and earn interest on your saving balance. This cash is moved into the savings account using your handset via the M-PESA Menu.
• Enable you access micro credit product (loan) of a minimum of Ksh.100 anytime and receive your loan instantly on your M-PESA account.

Do you get charged interest on your M-Shwari loan?

The M-Shwari loan DOES NOT attract any interest. The 7.5% charged is a loan facilitation fee payable only once for each loan taken.

If you have Kshs 5, 000 in your M-Shwari account, will you get a loan of the equivalent amount?

The loan amount is dependent on your loan amount limit, previous loan repayment behaviour and usage of other Safaricom services such as Voice, DATA and M-PESA.

If you have saved Kshs 5000 in your M-Shwari and have a loan of Kshs 2000 and do not repay within the loan duration (30 days), what happens to the money in your deposit account?

• When you borrow the Ksh 2,000, the money in your savings account will be frozen to the loan amount and the loan fee (loan amount Ksh 2,000 loan plus a facilitation fee of Ksh 150).
• You will only be able to access any balance above the frozen amount. The frozen amount will be accessible once you pay the loan. However you can continue to deposit money. Note: During the period the frozen savings will continue to earn interest which will be paid into your M-Shwari at the end of calendar quarter.

Can you request for a loan immediately you opt-in?

For you to qualify for your initial loan you must deposit money in your savings. The amount you can borrow will depend on your usage of Safaricom Voice and DATA as well as your M-PESA usage.

Can you have more than one loan at a time?

No. You have to repay your outstanding loan first before you can borrow another loan.

Can you pay a loan on behalf of another person?

You can send money to their M-PESA account and they can pay the loan.

If you have not paid your loan within 30 days, what will happen?

Your loan repayment period will be extended for an additional 30 days and you will be charged an additional 7.5% facilitation fee on your outstanding loan balance.

What happens if you pay in excess of the loan amount?

The outstanding loan balance will be paid off and the extra amount will be moved to your M-Shwari savings account.

If you pay your loan before the due date, will you still be charged the loan facilitation fee of 7.5% on the loan amount?

Yes, the 7.5% is a facilitation fee charged on the cost of processing the loan. Early repayment will increase your future loan limit qualification. Remember your loan limit is dependent on your previous loan repayment behaviour and usage of other Safaricom services such as Voice, DATA and M-PESA.

What are the key advantages of M-Shwari service?

• M-Shwari is a paperless (mobile centric), safe and fast service that allows you to save; borrow through your phone.
• M-Shwari has competitive interest rates on savings.
• Interest is calculated daily and paid out at the end of each calendar quarter.
• There is no minimum balance on M-Shwari.
• There are no ledger fees.
• There are no withdrawal charges in moving money between M-Shwari account and M-PESA.