Connect with us

Hi, what are you looking for?

News

Excitement as Mshwari Raises Loan Limit Four Times

mshwari
mshwari

(KDRTV) – Safaricom and NCBA bank have announced changes to the M-Shwari loan services. Customers will now borrow a minimum of Ksh 2,000, which is four times more than the previous Ksh 500 minimum.

Customers who do not qualify for a Ksh 2000 loan have been relegated to the Fuliza loan service which is more expensive than Safaricom.

According to NCBA Group managing director John Gachora, the new limit will reduce loan defaulters. He said the bank’s internal analysis shows that most customers seeking loans below Ksh 2,000 are likely to default since the monies are used unplanned for. These customers will shift to Fuliza.

“M-Shwari serves the critical need for planned credit and the demand for lower ad hoc (impromptu) credit is now better served with Fuliza,” Mr Gachora said.

Read Also: SendWave App on the receiving end over their exchange rates

Mshwari customers have been receiving communication on the changes from Monday this week. Mshwari is a monthly loan service where customers borrow funds and pay a Ksh 7.5 interest per month. This translates to 90% per annum. Fuliza loans are more expensive at 392.

Statics from the Credit Reference Bureau show that at least 3 million people have defaulted on loans. Majority of these people have been listed for loans as little as Ksh 1000 from digital lending apps.

The Kenyan economy has stagnated since the outbreak of COVID-19 pandemic with most people losing their sources of income. This is the group most likely to seek mobile loans.

 

 

Subscribe to watch latests videos
Click to comment

You May Also Like

News

(KDRTV) – Popular and controversial man of the cloth Pastor James Ng’ang’a of the Neno Evangelism Centre has a serious battle in his hands...

USA

Eric died in his house and spent a couple of days before he was discovered

USA

Antony Mamboleo Nyakeyo will spend the rest of his life in Prison

News

A high-ranking government official in Tanzania has claimed that Dr. John Pombe Magufuli was killed by the Chinese in collaboration with the Western Countries