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How to Pay Mshwari Loan

By Oluchukwu Ikemefuna

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If you’re trying to find out how to pay Mshwari loan, chances are you’re one of the millions of Kenyans who rely on M-Shwari for quick cash solutions.

From first-time borrowers to professional users on the platform, even the best of us could get confused on how to repay a Mshwari loan.

In this post, we’ll walk you through the simple steps involved in paying back your M-Shwari loan.

What Is Mshwari?

M-Shwari is one of the top mobile banking services offered in Kenya. The company was developed through a partnership between Safaricom, the country’s leading telecommunications provider, and the Commercial Bank of Africa (CBA). 

M-Shwari provides users with access to various financial services directly from their mobile phones, primarily through the widely used M-Pesa platform. Its services include savings accounts, loans, and insurance products, all accessible through a simple and convenient mobile interface.

Mshwari has transformed the way Kenyans manage their finances, particularly for those who previously lacked access to traditional banking services. 

Read also: Berry Loan App: How to get a Berry Loan

What Services Does Mshwari Offer?

M-Shwari offers several financial services designed to meet the diverse needs of its users. It allows its users to save their money,take a loan with interest and perform other listed services below:

1. Saving Your Money:

M-Shwari lets you save your money, whether it’s for a specific goal or just to have some extra cash on hand for when you need it. 

When you save with M-Shwari, you don’t need to worry about keeping a minimum balance or paying any fees. You can easily move money between your M-PESA and M-Shwari accounts without any extra charges.

Also, the money you save with M-Shwari earns interest, at a rate of 7.35% per year, as set by the Banking (Amendment) Act 2016.

2. Borrowing Money:

Sometimes you need a little extra cash, whether it’s for an emergency or to invest in something important. That’s where M-Shwari loans come in.

With M-Shwari, you can borrow money quickly and easily. There’s a one-time fee of 7.5% for each loan you take out, but it’s a small price to pay for the convenience.

To qualify for a loan, all you need is to have been an M-PESA subscriber for at least six months, save money with M-Shwari, and use other Safaricom services regularly. You can check how much you can borrow by going to the M-Shwari app and checking your loan limit.

3. Interest Rates:

The interest rates you earn on your savings with M-Shwari depend on how much money you have saved. If you have between 1 and 20,000 Kenyan Shillings saved, you’ll earn 3% interest per year.

If you have between 20,001 and 50,000 Kenyan Shillings saved, you’ll earn 4% interest per year. And if you have more than 50,001 Kenyan Shillings saved, you’ll earn 5% interest per year.

4. Lock Savings Account:

M-Shwari also offers a lock savings account, where you can save money for a specific purpose and for a set amount of time. The money you save in a lock savings account stays there until the maturity date, which you choose when you open the account.

This can be anywhere from one to twelve months. If you need to withdraw the money early, you can request to do so, but it will take 48 hours to process the request.

The interest rates for lock savings accounts are similar to regular savings accounts, but they’re a bit higher: 3% per year for savings between 1 and 20,000 Kenyan Shillings, 5% per year for savings between 20,001 and 50,000 Kenyan Shillings, and 6% per year for savings over 50,001 Kenyan Shillings.

5. Convenient Banking Solutions:

M-Shwari strives to make banking more accessible and convenient for users, particularly those who may have limited access to traditional banking services.

The platform offers a user-friendly interface that allows users to access their accounts, apply for loans, and perform transactions from anywhere, at any time.

Through partnerships with other financial institutions and service providers, M-Shwari may also offer additional banking services, such as bill payments, fund transfers, and mobile commerce transactions.

Are There Any Penalties for Late Repayment of M-Shwari loans?

Late repayment of M-Shwari loans can result in penalties and additional charges, which borrowers should be aware of to avoid financial strain. 

1. Late Payment Fees

Mshwari loans usually need to be repaid in 30 days. Failure to repay loans in 30 days attracts an extra extension of 30 days plus a 7.5% additional facilitation fee. This fee is charged as a percentage of the outstanding loan amount.

2. Interest Accumulation

Failure to repay your loan in time incurs additional interest charges on the outstanding loan amount for each day it remains unpaid past the due date. This accrual of interest can significantly increase the overall cost of the loan and make it more challenging to repay.

In extreme cases of non-repayment, M-Shwari reserves the right to take legal action against borrowers to recover the outstanding loan amount. Legal action can involve court proceedings and may result in additional costs and penalties for the borrower.

5. Collection Attempts

M-Shwari may employ debt collection agencies or other means to recover overdue loan payments. These collection efforts can be intrusive and may add to the stress and financial burden faced by borrowers.

6. Difficulty in Obtaining Loans from Other Sources

Defaulting on M-Shwari loans can make it challenging for borrowers to obtain loans from other financial institutions in the future. Lenders may view late payments and defaults as red flags, leading to rejections or higher interest rates on future loan applications.

Read also: iPesa – Credit Loan to M-pesa: How to Access It

How To Pay Mshwari Loan?

There are several ways users can pay back their Mshwari loan and they include:

Step 1: Access Your M-Pesa Menu

On your Safaricom mobile phone, navigate to the M-Pesa menu by dialing *234# and press the call button.

Once in the M-Pesa menu, select the “Lipa na M-Pesa” option by entering the corresponding number or selecting it from the menu options.

Step 2: Choose “Pay Loan”

From the “Lipa na M-Pesa” menu, choose the “Pay loan” option by entering the corresponding number or selecting it from the menu options.

You will be prompted to enter the Paybill number for M-Shwari. Enter 2345 and press “OK” or the corresponding button.

Step 3: Enter Your M-Pesa Number as the Account Number

Next, you will be asked to enter the account number. Input your M-Pesa mobile phone number that is associated with your M-Shwari account.

You will then be prompted to enter the repayment amount for your M-Shwari loan. Input the exact amount you wish to repay and press “OK” or the corresponding button.

To confirm the transaction, you will need to enter your M-Pesa PIN. Input your PIN securely and press “OK” or the corresponding button.

Step 4: Confirm the Transaction

After entering your PIN, you will receive a confirmation message displaying the details of the transaction, including the repayment amount and Paybill number. Review the information carefully to ensure accuracy.

Step 5: Complete the Transaction

If all the details are correct, confirm the transaction to complete the repayment process. Once confirmed, you will receive a confirmation message indicating that your M-Shwari loan repayment has been successfully processed.

Step 6: Verify Repayment

After completing the transaction, it’s advisable to verify that the repayment has been reflected in your M-Shwari account. You can do this by checking your M-Shwari loan balance or transaction history through the M-Shwari app or by dialing the M-Shwari USSD code *234#.

Read also: M-shwari Soft Loan Requirements

How to Pay Mshwari Loan for another Number

If you need to pay a Mshwari loan for another number, you can do so by sending money directly to their M-PESA account. Here’s a detailed guide on how to accomplish this:

  • Access M-PESA Menu: 

Begin by accessing the M-PESA menu on your mobile phone. This can usually be done by dialing *234# and then pressing the call button.

  • Select “Lipa na M-PESA”: 

From the M-PESA menu, select the “Lipa na M-PESA” option, which is typically option 4.

  • Choose “Pay Bill”: 

Next, select the “Pay Bill” option, usually option 2.

  • Enter M-PESA Pay Bill Number:

You will be prompted to enter the Pay Bill number for Mshwari. The Mshwari Pay Bill number is 247247.

  • Enter Account Number:

 After entering the Pay Bill number, you’ll be asked to enter the account number. Here, you’ll input the phone number of the individual for whom you are paying the Mshwari loan.

  • Enter Amount:

Proceed by entering the amount you wish to pay towards the Mshwari loan.

  • Enter M-PESA PIN: 

You’ll then be prompted to enter your M-PESA PIN to authorise the transaction.

  • Confirm Transaction: 

Carefully review the transaction details displayed on your screen to ensure accuracy. If everything looks correct, confirm the transaction to initiate the payment.

  • Transaction Confirmation:

Once the transaction is successful, you’ll receive a confirmation message from M-PESA indicating that the payment has been made to the specified Mshwari account.

  • Notify Recipient: 

It’s a good practice to inform the recipient that you’ve made the payment on their behalf. This ensures transparency and allows them to monitor their Mshwari account for the updated loan status.

By following these steps, you can easily pay a Mshwari loan for another number by sending money directly to their M-PESA account. It’s a convenient and efficient way to assist someone in managing their financial obligations.

Read also: Leja Loan: How to Access it

How to Pay Mshwari Loan using Fuliza

Fuliza comes in handy when you’re doing Mpesa transactions and you’re short on cash, but it doesn’t let you directly pay back your Mshwari loan.

However, you can still repay your Mshwari loan by sending the Fuliza money to a different number linked to your Mshwari loan, not the one using Fuliza.

To do this, you’ll need two Safaricom lines with Fuliza activated: one with a pending Mshwari loan (let’s call it line 1) and another one (line 2) to transfer Fuliza funds to it. 

This way, you can move money between the two lines to pay off your Mshwari loan. And the amount you can borrow depends on how much Fuliza allows you to borrow.

Here’s how to pay your Mshwari loan with Fuliza:

1. Get your second Safaricom line with a Fuliza limit.

2. Go to the Mpesa menu.

3. Select “Send Money” from the menu options.

4. Enter the phone number linked to your Mshwari loan (line 1 in this case).

5. Input the amount you want to transfer to your Mshwari SIM line, based on your Fuliza limit.

6. Enter your Mpesa Pin and confirm the transaction.

7. Once the money is sent to the phone number associated with your Mshwari loan, you can use it to settle the loan amount.

How To Qualify For A Mshwari Loan?

To qualify for an M-Shwari loan, you need to meet certain eligibility criteria set by Safaricom and the Commercial Bank of Africa (CBA). 

1. Have an Active M-Pesa Account

To be eligible for an M-Shwari loan, you must have an active M-Pesa account registered under your Safaricom mobile phone number. 

2: Use M-Pesa Regularly

Regular usage of M-Pesa, including activities such as sending and receiving money, purchasing goods and services, and paying bills, can increase your eligibility for an M-Shwari loan. 

3 : Meet Minimum Age Requirement

You must be at least 18 years old to qualify for an M-Shwari loan. This age requirement ensures that borrowers are legally capable of entering into financial agreements and responsibly managing loan repayments.

Read also: KCB Mpesa Loan Limit

Frequently Asked Questions

What is M-Shwari?

M-Shwari is a mobile banking service offered in Kenya through a partnership between Safaricom and the Commercial Bank of Africa (CBA). 

What are the loan limits for M-Shwari loans?

The loan limits for M-Shwari loans vary depending on factors such as your M-Pesa transaction history, creditworthiness, and repayment behaviour. Initially, users may qualify for smaller loan amounts, which can increase over time as they build a positive borrowing record.

What happens if I miss the repayment deadline for my M-Shwari loan?

Missing the repayment deadline for an M-Shwari loan will cause a 30 day extension and an extra facilitative interest percentage.

Can I access multiple M-Shwari loans simultaneously?

Yes, you can access multiple M-Shwari loans simultaneously, provided you meet the eligibility criteria and demonstrate the ability to repay them.

Can I access M-Shwari loans if I’m not a Safaricom subscriber?

No, M-Shwari loans are exclusively available to Safaricom subscribers who have active M-Pesa accounts. If you’re not a Safaricom subscriber, you won’t be eligible for M-Shwari loans.


M-Shwari has emerged as a transformative force in the Kenyan financial landscape, offering convenient and accessible banking solutions to millions of individuals. Through its user-friendly platform and innovative approach, M-Shwari has empowered users to manage their finances effectively, from savings to short-term loans, all from the convenience of their mobile phones.  



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Blessing Ukibe
Blessing Ukibe

Medical Student at Nnamdi Azikiwe University|Tech content expert at Silicon Africa Technology|Lover of fun books and fun fun ☺️

Articles: 148

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