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Faraja Loan: How to Borrow from Faraja

By Oluchukwu Ikemefuna

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Have you ever wished for a quick, accessible financial bailout? So grab a seat, because we have some great news to share with you! 

There are times when unexpected expenses catch us off guard, And there’s no feeling as good as being able to access fast money to clear off the bills.

This is where Faraja Loan comes in—your go-to source for interest-free, hassle-free credit. But there is still more! 

Source: Faraja Official X Account

Explore this post to learn about Faraja Loan’s features, eligibility, and reasons it could be your ideal day-to-day financial companion.

What is Faraja Loan?

Faraja Credit is a credit service teamed up with Safaricom to offer users access to credit at zero interest. 

Faraja Loan allows users to buy and pay for services through its credit offering. This means that when you walk into a business that accepts Faraja without cash to pay upfront, Faraja will pay for you while you pay later at no interest. 

Note that the Faraja loan can only be used as a point-of-sale and cannot be used to withdraw cash or transfer money to another person. The services are only available to businesses or outlets registered with Faraja. 

Also, Faraja is limited to use at locations that support Faraja transactions for Lipa na M-PESA and Pay Bill transactions.

Who can access the Faraja loan?

Just as with any other loan company, Faraja requires that beneficiaries meet certain conditions before they can access the services. The first is that users must be qualifying M-PESA customers who have active Safaricom connections. 

Without wasting time, here’s a breakdown of who can access the Faraja Loan and other requirements:

  1. Qualifying Safaricom Users: Any qualified Safaricom user is eligible to apply for a Faraja loan. Nevertheless, users need to have a live Safaricom line.
  2. M-PESA Customers: Qualifying M-PESA clients with valid Safaricom lines may apply for a Faraja loan. Credit viability determines the credit limit.
  3. Age Requirement: To use the service, you must be at least eighteen.
  4. Kenyan Resident: Applicants must be current residents of the Republic of Kenya.
  5. Active Safaricom’s M-Pesa Account: The applicants’ M-Pesa account must be operational for Safaricom for the funds to be transferred to them.
  6. Honest and Trustworthy: Faraja stresses reliability and honesty. It is expected of applicants to be kind individuals.
  7. Duration of Safaricom Line: The applicant’s present Safaricom line must have been in operation for at least six months.
  8. Regular Income: Candidates must be financially stable, whether by employment, benefits, or a business.

Vital Information You Should Know About Faraja Loan

If you plan to use Faraja in the future, it’s crucial you that are well-informed so that you can transact better. Here are a couple of essential things you should know:

  1. Credit Period: Faraja gives customers flexibility in payback terms by offering credit periods of either seven or thirty days.
  2. Opting In: Interested individuals can opt-in by dialing *799#.
  3. Account Limit: A single National ID may only have a maximum of two accounts for Faraja.
  4. Usage Frequency: Consumers get unlimited access to Faraja, as long as they stay under their credit limit.
  5. Withdrawals Not Permitted: Account withdrawals from Faraja are prohibited. The money can only be used for bill payments and point-of-sale purchases.
  6. No Interest: There’s no interest charged when repaying the borrowed amount.
  7. Loan Terms: 30-day and 7-day loan terms are available from Faraja. If the loan is for a 30-day term, it is due on the 30th day; if it is for a 7-day term, it is due on the 7th day after the loan is granted.
  8. Repayment Process: Repayment can be made by using the assigned Paybill number or additional channels that the company provides to return the outstanding facility amount that was advanced to you, either in full or in part.
  9. Transaction Limits: Users of Faraja can purchase things for as little as Ksh 20 and up to Ksh 100,000. Only M-Pesa fees will be incurred at the point of sale; there are no additional costs associated with the loan.

Paying for Goods and Bills With Faraja Loan

You can spend as little as KES 20 and as much as KES 100,000, depending on your approved credit limit.

Dial *799# to pay for goods or services. You have two options:

  1. Purchase Goods and Services: Enter your M-PESA PIN, the till number, and the amount. A message verifying the success or failure of the transaction will be sent to you.
  2. Paybill: Type in your M-PESA PIN, account number, and business number. Notifications regarding the transaction status will be sent to you.

Recall that every time you make a transaction or require authentication, you must input your M-PESA PIN.

How to Sign Up for a Safaricom Faraja Credit

  • Press *799# and choose “opt-in.” A maximum of two accounts under a single National ID will be permitted by the service.
  • Type in the PIN for Mpesa. After that, Safaricom will email your credit limit to you.

How to Access Faraja by Safaricom

Bars and restaurants, gas stations, and additional supermarkets are among the establishments to which Safaricom intends to extend the service. Here’s the procedure if you are wondering how to apply for a Faraja loan.

  • To join Faraja, dial *799#.
  • Go with the OPT-In choice.
  • To find your Faraja limit, use your Safaricom M-Pesa PIN.
  • Dial *799# and choose Lipa na Mpesa – Buy Goods and Services or Paybill option to pay a business.
  • Enter the desired payment amount.
  • To complete a transaction, enter your M-Pesa PIN.
  • If your transaction is successful or unsuccessful, Safaricom will SMS you.

How can I Repay my Faraja Loan?

It is up to you when you want to make the repayment. Whether it is a 30-day or 7-day loan, the money is deducted from your M-PESA wallet. 

You will only need to reimburse the outstanding facility amount that was advanced to you, in full or in part, according to Safaricom. You can do this by utilizing the designated Paybill number or other channels that the firm may occasionally provide. 

In addition, you can make partial payments and raise your credit limit by paying early. To return your loan from Faraja, take the following actions:

  • Using your Safaricom line, dial *799#.
  • Select the transaction you’re paying for, then click Send.
  • After entering your MPESA PIN, click “Send.”
  • Accept or reject the deal.
  • You will receive an SMS notification verifying the credit transaction details, the amount paid, and the updated balance as soon as it is approved.

Penalties for Defaulting in your Faraja Loan Repayment

If you’re late with your payment, Faraja will not penalise you. However, being late could mean you won’t be able to use the product in the future.

Where can I Buy Goods and Services using Faraja?

Faraja is working on increasing the number of retailers currently taking payments through Faraja loans. Naivas Supermarkets, Citi Walk, and Good Life Pharmacy are a few of these. 

The Faraja website has a list of these locations. Alternatively, you can look through the Faraja Credit app on the Google Play Store. 

Conclusion

Without a doubt, Faraja Loans is changing how people get loans and conduct transactions in Kenya. By walking into any store or outlet, you can swiftly pay for goods and services using the service and pay later. And that at zero charges!

All you need to do is dial the code, follow the prompt, and Faraja will clear your bills. The next time you find yourself low on cash and need to pay that bill urgently, take out your phone and use Faraja. 

FAQs

How can I withdraw money from Faraja Credit?

Cash withdrawals are not available with Faraja Credit, in contrast to typical loans. But in certain stores, you can use your credit card interest-free. Faraja is only accepted at certain locations.

How do I use my Faraja Credit?

You can opt-in in two simple ways: use the unique FARAJA mini-app in the M-PESA Super App or just call *799#. Once enabled, you can use it to make repeated purchases up to your credit limit 

How can I check my Faraja loan limit?

You will receive a confirmation message with your Credit Limit when you use Faraja.

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Peremoboere Numa
Peremoboere Numa

Pere is a versatile SEO writer with a Master's degree in English, who is dedicated to creating engaging and impactful content.

She excels in weaving content that not only informs, enlightens and impacts but but also optimize its online presence to rank on major web sites.

Pere brings a unique blend of linguistic proficiency and SEO knowledge, ensuring that each piece she crafts leave a lasting impact.

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