Mshwari: mpesa loans, savings, and banking

One of the quickest ways to get an m-pesa loan directly on your phone is through mshwari. Not only is mshwari a way of applying for online loans on mpesa, it is a paperless banking service offered through m-pesa menu.

Mshwari stands out from other mpesa lending platforms because it is available from any phone. This means that you do not need to install anything on your phone to access money you need. Not only that, it offers savings and cash deposit features.

Loans on mshwari

In addition to savings, m-shwari offers a mobile loan lending platform. These loans transfer the money to your m-pesa account. It is referred to as a micro-credit product that complements other services offered by mshwari.

You can borrow money from mshwari for emergency purposes or if you’re in need of a quick push of cash in Kenya.

Does M-shwari charge an interest rate on loans borrowed? When it comes to interest rates on mshwari for a loan, the lending platform charges a one-time fee of 7.5% on each loan borrowed.

Borrowing often and repaying on m-shwari creates a credit history.

Requirements to apply for an mshwari loan

  • Have a registered Safaricom number.
  • Be an m-pesa subscriber for 6 months.
  • Be active on Safaricom services such as voice, data and m-pesa.
  • Save money on the mshwari platform.

How to know your mshwari loan limit

Loan limit refers to how much you can qualify for when applying for an m-pesa loan through mshwari. To check how much you qualify for as your loan limit on mshwari, follow these steps:

  • Open mpesa
  • Select loans and savings
  • Go to mshwari
  • Select loan
  • Press the check loan limit options.

Mshwari loan limits start from a minimum of Ksh 100 up to a maximum of Ksh 50,000. Amongst m-pesa lending loan givers, mshwari has one of the largest limits.

How long is the mshwari loan repayment time? The mshwari loan facility allows you a repayment period of one month i.e. 30 days. To repay your loan, you can do it through m-pesa. Just follow the steps below.

How to apply for an mshwari loan

  1. Open the mpesa menu on your phone.
  2. Select loans and savings
  3. select m-shwari
  4. Next, select loan.
  5. Choose request loan
  6. Now, enter the amount you want to borrow. (make sure the amount is within your loan limit )
  7. next, enter your m-pesa PIN
  8. Wait for the loan amount to be sent to your m-pesa account.

Mshwari will then send the money directly to your m-pesa account instantly.

How to repay mshwari loan

Follow these steps to repay your mshwari loan

  1. Open mpesa on your phone.
  2. Select loans and savings.
  3. Choose m-shwari.
  4. Press the loan option.
  5. Select pay loan.
  6. Choose if you want to pay from mpesa account or from mshwari.
  7. Enter the loan amount to repay.
  8. Key in your mpesa PIN and press OK.

By following these steps, you have paid back your mshwari loan. Mshwari will then send you a confirmation message about your successful loan repayment.

Partial payment of mshwari loan

Can you pay your mshwari loan in instalments? Yes, you can repay your mshwari loan in instalments. However, these small payments have to be made within 30 days, the agreed-upon time you had to repay the loan.

Tips when applying for an m-shwari loan

  • Only apply for an amount that is within your loan limit.
  • Make sure you do not have an outstanding loan because m-shwari doesn’t allow for top ups.
  • Pay off loans from other loan apps and loan providers.

Features of mshwari

  • Enables you to easily open and operate an m-shwari bank account using your mobile phone. You do this from the mpesa menu and you do not have to visit a bank or fill out any forms.
  • Easily transfer money in and out from from your mshwari account to your m-pesa account at no extra cost.
  • You can save money on the mshwari account. Save from as little as Ksh 1. You also earn a intrest of 6.65% p.a on your saving balance.
  • Apply for a loan directly from m-shwari. The minimum amount you can borrow is Ksh 100 and you can borrow up to a maximum of Ksh. The interest charged (facility fee) on m-shwari is 7.5% on the amount you borrow.
  • Also get fixed savings account (set money for a fixed period of time. ) and earn interest on the savings. (70% of the central bank rate. )

The mshwari product is marketed as a hastle free banking product. When you compare to loan apps such as tala and branch, which only offer m-pesa loans, mshwari has additional features like savings account and interest rates on money saved.

How to sign up for Mshwari

  • Open the mpesa menu
  • Select loans and savings.
  • Choose mpesa
  • Press activate.

And just like that, you are registered for an mshwari account.

Deposits on mshwari

Mshwari is not your ordinary mpesa loan lending platform. Instead, it is a hustle free banking product. One of the main features is its micro-savings product.

This savings product allows you to securely store your money like you would in a banks saving account. Mshwari savings has the following features:

Features of mshwari savings

  • Doesn’t require a minimum balance.
  • There are no charges on the account.
  • You do not pay any fees or charges for transferring (moving) money from m-pesa to m-shwari account or from m-shwari to m-pesa.
  • All the deposits earn interests, up to 70% of the central bank rate. This is in line with the banking amendment act 2016.

Mshwari interest rates on savings

Amount Interest rate
Ksh 1-20,000 3% P.A
Ksh 20,000 – 50,000 4% P.A
Above Ksh 50,000 5% P.A

Mshwari savings account (lock savings account)

Another feature offered by mshwari is the savings account. What makes this savings account stand out is that it is a lock saving account. This means that the money saved on the mshwari lock savings account will be kept in the account until the maturity date.

The maturity date is normally defined by the mshwari customer. The time frame for saving away this money on the account is between 1 month and 12 months.

Also, as a customer, mshwari allows you to make micro-deposits into this saving account. This account is ideal for customers who want to earn a high-interest rate on their money or those who want to keep some money away safely for between 1 and 6 months.

Requirements for opening an mshwari Lock savings account

These are the requirements needed to open an mshwari lock account i.e. successfully register for an account.

Advantages of opening a lock savings account

  • No minimum amount is required to save.
  • The savings account comes at no charge.
  • Customers enjoy a constant interest rate during the period the money is in the account.
  • The interest on the saved amount is calculated monthly.
  • Offers flexible period to choose from between 1 month and 6 months.

Interest rate earned on the m-shwari lock savings account

Below find the interest rate earned on your money in a lock savings account

Amount Interest rate
Ksh 1-20,000 3% P.A
Ksh 20,001 – 50,000 5% P.A
Above Ksh 50,000 6% P.A

How to access the Lock savings account on mshwari

  • Open mpesa on your phone
  • Select loan and savings
  • Choose mshwari
  • Select loack
  • Then select lock and savings.

How to open and save into mshwari lock savings account

  • open mpesa menu on your phone.
  • Select the loans and savings option.
  • Choose mshwari.
  • Select lock savings account
  • Press open account
  • Now, select if you want to save money from m-pesa or from m-shwari.
  • Enter the target amount
  • Next, enter a period between 1-6 months.
  • Then, enter the amount you want to save.

You will receive an SMS confirmation that your lock savings account has been set up. Now, anytime you need to save money, follow the same procedure from above.

When your money in the lock savings account matures, m-shwari will send you and SMS notifying you of the amount saved and the interest you have earned.

Requesting money from mshawri lock savings before maturity date

Can you withdraw your money from the lock savings before the maturity date? Yes you can. However, you will have to wait for 48 hours before the money is sent to you. Mshwari allows you to do this by either withdrawing the entire amount i.e. break lock or by making a partial withdrawal of the money i.e. Partial Break.


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