M-shwari Soft Loan Requirements

M-Shwari Soft Loan – M-Shwari, a mobile loan service, is a collaboration between NCBA Bank and Safaricom‘s M-PESA. NCBA manages a dedicated information system, ensures regulatory compliance, reports to the Credit Reference Bureau (CRB), and provides capital for the loan portfolio. NCBA also bears the risk and absorbs losses from non-performing loans.

These loans can be accessed through the Safaricom SIM toolkit, the MySafaricom app, and the recently launched M-PESA app.

Also read: Tala Loan app: How to Apply for a Loan

Introduction to M-Shwari Soft Loan Application

M-Shwari, derived from the Swahili word meaning “to smoothen or improve,” is a groundbreaking product poised to positively impact the lives of millions of Kenyans. NCBA and Safaricom bring you M-Shwari, with the “M” symbolizing its mobile-centric nature, as it operates entirely from your mobile phone.

It is not accessible through any NCBA branch but only through your handset, and all you need is to be registered on M-Pesa. There are no forms or additional documents required to sign up for M-Shwari.

M-Shwari offers a suite of banking products to M-PESA customers via their handset, enhancing the M-PESA value proposition. With M-Shwari, users gain access to convenient, low-interest-rate, reliable, and cost-effective Deposit and Loan products for micro-savings and micro-loans.

Also read: Request Loan: How to Apply for a Personal Loan in 2024

M-Shwari Loan Eligibility, Requirements and Limits

New users start with a zero M-Shwari loan limit. To qualify for a loan, you must have been an active M-PESA user for at least 6 months, regularly save in your M-Shwari account, and consistently use other Safaricom services like voice, data, and M-PESA.

M-Shwari offers loans ranging from Ksh100 to KSh50,000 with a 9% facilitation fee. These loans must be repaid within 30 days, but you can repay them earlier and borrow again.

To check your loan limit:

1. Open the Safaricom toolkit.
2. Select M-PESA.
3. Choose loans and savings.
4. Select M-Shwari.
5. Click on Loan.
6. Choose Check Loan Limit.
7. Enter your M-PESA PIN to send the request.
8. You will receive an SMS confirming your M-Shwari limit.

How to Register for a Loan using M-Shwari

To activate M-Shwari, follow these simple steps:

1. Access the M-PESA menu.
2. Select Loans and Savings.
3. Select M-Shwari.
4. Select Activate.

Also read:Latest on How to Borrow Money from PalmPay in 2024

Applying for a Loan on M-Shwari via Sim Toolkit

To apply for an M-Shwari loan, follow these steps:

1. Open your Safaricom SIM toolkit and select Loans and Savings.
2. Choose ‘M-Shwari Loan.’
3. Select ‘Loan @9% for 30 days.’
4. Click on ‘Request Loan.’
5. Enter the amount you want to borrow (within your loan limit).
6. Enter your M-PESA PIN and send.

Upon confirmation of your loan request, you will receive an initial SMS message immediately. A second SMS message will follow to inform you of the status of your request, whether successful or unsuccessful.

Applying for a Loan on M-Shwari via Safaricom App

To access M-Shwari through the mobile app, follow these steps:

1. If you don’t have the app yet, download it from Google Play Store or Apple Store.
2. Once installed, launch the app and navigate to the M-PESA tab.
3. Select Loans and Savings.

Next, on the M-Shwari tab:

1. Click on Loans.
2. Select Request a Loan.
3. Enter the amount you wish to borrow.
4. Enter your M-PESA PIN and send.

After confirming your loan request, you will receive an initial SMS message immediately. A second SMS message will follow to notify you of the status of your request, whether successful or unsuccessful.

Repaying your M-Shwari Loan

Via Sim Toolkit:

1. Access the M-PESA menu.
2. Select Loans and Savings.
3. Choose M-Shwari.
4. Click on Loan.
5. Select Pay Loan.
6. You can make the payment from either M-PESA or your M-Shwari account.
7. Enter the amount you want to pay.
8. Enter your PIN and send.

Via MySafaricom app:

1. Open the MySafaricom app and go to the M-PESA tab.
2. Select Loans and Savings.
3. Choose M-Shwari.
4. Click on Loan.
5. Select Pay Loan.
6. You can make the payment from either M-PESA or your M-Shwari account.

If you extend your M-Shwari loan repayment period, an additional 30 days will be granted, but you will incur an extra 7.5% facilitation fee on your outstanding loan balance.

M-Shwari loan defaulters are prohibited from applying for another M-Shwari loan for 30 days. Additionally, they will face restrictions on accessing Okoa Jahazi services.

Failing to repay your loan may result in your details being listed on the Credit Reference Bureau (CRB), pending full repayment of the loan facility.

Also read: iPesa – Credit Loan to M-pesa: How to Access It

FAQs about M-Shwari:

What is M-Shwari?

M-Shwari is a revolutionary mobile banking service offered in partnership by NCBA Bank and Safaricom’s M-PESA. It provides convenient access to loans and savings products directly from your mobile phone.

How can I activate M-Shwari?

To activate M-Shwari, follow these steps:

• Access the M-PESA menu.
• Select Loans and Savings.
• Choose M-Shwari.
• Select Activate.

What are the loan limits and terms of M-Shwari?

M-Shwari offers loans ranging from Ksh100 to KSh50,000 with a facilitation fee of 9%. Loans are repayable within 30 days, but you can repay them earlier and borrow again.

How can I check my M-Shwari loan limit?

To check your loan limit, follow these steps:

• Open the Safaricom toolkit.
• Select M-PESA.
• Choose Loans and Savings.
• Select M-Shwari.
• Click on Loan.
• Choose Check Loan Limit.
• Enter your M-PESA PIN to send the request.

How do I apply for an M-Shwari loan?

To apply for an M-Shwari loan, follow these steps:

• Open your Safaricom SIM toolkit and select Loans and Savings.
• Choose ‘M-Shwari Loan.’
• Select ‘Loan @9% for 30 days.’
• Click on ‘Request Loan.’
• Enter the amount you want to borrow (within your loan limit).
• Enter your M-PESA PIN and send.

How can I repay my M-Shwari loan?

You can repay your M-Shwari loan through either of these methods:

• Via Sim Toolkit:
  • Access the M-PESA menu.
  • Select Loans and Savings.
  • Choose M-Shwari.
  • Click on Loan.
  • Select Pay Loan.
  • Enter the amount you want to pay.
  • Enter your PIN and send.
• Via MySafaricom app:
  • Open the MySafaricom app and go to the M-PESA tab.
  • Select Loans and Savings.
  • Choose M-Shwari.
  • Click on Loan.
  • Select Pay Loan.
  • Enter the amount you want to pay.
  • Enter your PIN and send.

What happens if I extend my M-Shwari loan repayment period?

If you extend your repayment period, you’ll get an additional 30 days, but you’ll be charged an additional 7.5% facilitation fee on your outstanding loan balance.

Are there consequences for defaulting on M-Shwari loans?

Defaulters are not allowed to apply for another M-Shwari loan for 30 days and may face restrictions on accessing Okoa Jahazi services. Furthermore, failing to repay may lead to your details being listed on the Credit Reference Bureau (CRB) until the loan is fully repaid.

Conclusion

In conclusion, M-Shwari represents a significant advancement in mobile banking, providing Kenyans with easy access to financial services right from their fingertips. Through a seamless integration with M-PESA and innovative features like quick loan processing and convenient repayments, M-Shwari has transformed the way people manage their finances.

With its user-friendly interface and comprehensive suite of banking products, including loans and savings options, M-Shwari caters to the diverse financial needs of individuals, making it a reliable and convenient banking solution.

As we move forward in the digital age, M-Shwari continues to pave the way for financial inclusion and empowerment, offering a pathway to financial stability and growth for millions across Kenya. Whether it’s accessing quick loans, saving for the future, or managing repayments, M-Shwari remains a trusted companion in navigating the complexities of personal finance with ease and efficiency.