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How to fuliza mpesa loan

How to fuliza

In Kenya, where mobile money services have transformed how people transact, Safaricom’s Fuliza M-Pesa loan stands out as an innovative solution. Let’s delve into Fuliza, how it works, and why it matters.

What Is Fuliza M-Pesa?

Fuliza M-Pesa loan is a continuous overdraft service offered by Safaricom, in collaboration with the Commercial Bank of Africa (CBA). It caters to M-Pesa users who must complete transactions even when their accounts lack sufficient funds. Think of it as a safety net—a financial bridge that ensures seamless transactions, even in tight spots.

An overdraft occurs when an account balance goes below zero, and a person or business continues to make transactions. In other words, it’s when you spend more money than you have available in your account. Overdrafts can happen through various means, such as writing a check, using a debit card, or initiating electronic transactions like Fuliza.

How Does Fuliza Work?

In Kenya Fuliza an Mpesa loan has become a part of our daily lives. Unlike most loans where you have to secure your loans to get a facility, fuliza is an unsecured facility that uses your history of using Mpesa to assess your creditworthiness. Your frequency of transactions will be used to assess your ability to pay back the loan. Please note that an overdraft is still a loan that attracts fees and interest

  1. Overdraft Facility: Fuliza acts like an overdraft. You can borrow funds within your assigned limit, even if your M-Pesa account balance is low.
  2. Immediate Access: Fuliza allows you to send money, pay bills, and buy goods without worrying about insufficient funds. It tops up the amount you are short on and charges an interest on this facility.
  3. Collaboration: Safaricom collaborates with KCB and CBA to make Fuliza possible.

How to Register and Fuliza M-Pesa loan

  1. Ensure you have an active Safaricom line registered for M-Pesa.
  2. Dial *234# on your Safaricom mobile phone.
  3. Select “Fuliza M-PESA” from the menu options.

Follow the prompts to opt into Fuliza.

If you haven’t registered for Fuliza M-Pesa, you’ll receive an option to join. Once registered, you’ll have access to the following features:

  • Check My Limit: Find out your Fuliza overdraft limit.
  • My Fuliza Balance: Monitor your outstanding balance.
  • Mini Statement: Review recent Fuliza transactions.
  • Query Charges: Understand applicable fees.
  • Know More About M-Pesa: Explore additional M-Pesa services.

Remember, your Fuliza limit depends on your M-Pesa account history.

Eligibility and Limit

To qualify for a fuliza M-pesa loan there are a few things you need to qualify. This includes:

  • M-Pesa customers registered using their national ID, Kenyan passport, or Military ID can activate Fuliza. Foreign passport registrations are not eligible.
  • Upon opting in, you receive a limit defining the maximum overdraft amount you can access. This limit depends on your M-Pesa account history.

Repayment and Charges

  1. Access Fee: When you borrow, a one-time 1% access fee applies.
  2. Daily Maintenance Fee: Safaricom charges a daily maintenance fee based on your borrowed amount. The maximum daily fee is Ksh. 30.
  3. Repayment Period: Fuliza loans are repayable within 30 days from disbursement.

Interest: No traditional interest applies; instead, the daily maintenance fee covers the cost

How to Repay Fuliza Loan

  • Dial *234# on your Safaricom mobile phone.
  • Select “Fuliza M-PESA” from the menu options.
  • Choose “Pay balance” and enter the amount you want to repay.
  • Follow the prompts to complete the repayment.

If you don’t repay your overdraft fuliza M-pesa loan on the stipulated timeline:

Activation and Usage

  1. Smartphone Users: Sign up through the Mysafaricom app and access the Fuliza M-Pesa option.
  2. Non-Smartphone Users: Dial *234# and select Fuliza M-PESA. You must be a Safaricom customer registered on M-PESA for at least 6 months.

Withdrawal Limitations

  • You can use Fuliza funds for:
    • Paying via Lipa Na M-Pesa.
    • Sending money to other M-PESA users.
  • Direct withdrawal of Fuliza M-pesa loan funds is now available. You can withdraw directly from Fuliza

Default Consequences

  • If you default on repayment:
    • Deposited funds will be used to repay Fuliza.
    • If your M-Pesa account remains empty, your name and accounts may be submitted to Credit Reference Bureaus (CRB).

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