Reprieve To Borrowers As Safaricom And Banks Waiver Loan Charges

Joy Waweru | 1 year ago
Reprieve To Borrowers As Safaricom And Banks Waiver Loan Charges

Daily charges below 1000 shillings on Safaricom's Fuliza have been reduced by 40%. Safaricom has also introduced a three-day grace period.

Henceforth, the daily maintenance rates for loans ranging between 101 to 500 will be Kshs.3 while loans ranging from 501–1000 will be Kshs. 6 down from 5 and 10 respectively.

The popular loan service Ana’s reduced its transaction charges in a move aimed at increasing subscriptions to the product and promoting inclusion to the majority of Kenyans.

Safaricom, NCBA, and KCB will reveal the new fees in a comprehensive report by Wednesday.

The Fuliza loan service is run by three entities namely Safaricom, KCB, and NCBA.

The new discounted charges will be effected as of October 1, 2022.

Only customers who have opted in and have a positive limit with zero outstanding balance will be eligible for the discounted tariffs.

The fuliza loan service was launched in 2019 as a product of Safaricom. It enables a user to send money even without having enough balance in the mobile wallet (MPESA.)

Over the last three years, the fuliza overdraft service has gained popularity, especially among low-income earners. Within one year, between March 2021 and March 2022, the loan service had attracted over 6.9 million active users.

Over the said year, the telco had allotted 502.6 billion translating to1.5billion a day emerging as a leading digital lender.

On the other hand, the repayments totaled Kshs 510.3 billion 

With the fuliza overdraft service, you can withdraw money from your mobile wallet even for multiple times as long as you remain within the confines of your loan limit.

Fuliza limit is given based on the frequency of transactions with other Safaricom transactions such as okoa,m-shwari, and KCB Mpesa.

Another factor is the timeliness in servicing the loan.

“We have continued to assess the evolution of consumer behavior and economic conditions to identify ways in which we can further enhance the utility of our digital financial services,” NCBA stated.

In the near future, however, the loan service might face competition from a new-zero interest credit service named Faraja.

The product will be offered by Safaricom in partnership with Equity Bank and EDOMx -a Kenya-based fintech firm.

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