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.
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.
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:
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.
Mshwari will then send the money directly to your m-pesa account instantly.
Follow these steps to repay your mshwari loan
By following these steps, you have paid back your mshwari loan. Mshwari will then send you a confirmation message about your successful loan repayment.
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.
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.
And just like that, you are registered for an mshwari account.
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:
| 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 |
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.
These are the requirements needed to open an mshwari lock account i.e. successfully register for an 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 |
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.
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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