Fuliza is a popular overdraft service offered by Safaricom that allows users to complete M-Pesa transactions even when they don’t have enough funds in their account. Since its launch in 2019, Fuliza has gained millions of users due to its accessibility and flexibility. However, many people are unsure about the interest rates and how to calculate repayment for Fuliza loans. In this guide, we will break down Fuliza interest rates, including the daily fees, access fees, and how you can calculate your loan repayment.
What is Fuliza?
Fuliza is a continuous overdraft service linked to your M-Pesa account, allowing you to continue using M-Pesa services (like sending money, buying airtime, and paying bills) even when your account balance is insufficient. The service works on a rolling basis, meaning you can continue borrowing from your limit as long as you pay back on time. Fuliza is highly popular because it’s an easy, low-cost way for M-Pesa users to manage their cash flow, especially during emergencies.
Fuliza Interest Rates on Loans
When you borrow using Fuliza, you will incur certain charges, including a one-time access fee and a daily maintenance fee. These charges depend on the amount you borrow. Here’s a breakdown of the Fuliza interest rates:
Access Fee
- A 1% access fee is charged when you access the Fuliza loan. This fee is applied once when you borrow funds.
Daily Maintenance Fee
- The daily maintenance fee varies depending on the amount borrowed and is charged daily at midnight (00:00 hours).
- The daily fee applies until you repay the loan. If you don’t repay in time, the interest and fees accumulate daily.
Excise Duty
- If you fail to repay your Fuliza loan on time, an excise duty of 20% will be applied to the 1% access fee. This can add up quickly if you don’t settle the loan.
Fuliza Loan Repayment: How to Calculate
To calculate the repayment for your Fuliza loan, you need to consider the amount borrowed, the daily maintenance fee, and any excise duty if applicable.
Here’s a simple Fuliza interest rate calculator to help you understand how much you will pay in interest:
Fuliza Loan Charges Based on Amount Borrowed
| Amount Borrowed | Daily Maintenance Fee (Kshs) | Excise Duty (20%) on Access Fee (Kshs) | Total Charges (Kshs) |
|---|---|---|---|
| Kshs 0-100 | Kshs 0 | Kshs 0 | Kshs 0 |
| Kshs 101-500 | Kshs 2.5 | Kshs 0.5 | Kshs 3 |
| Kshs 501-1000 | Kshs 5 | Kshs 1 | Kshs 6 |
| Kshs 1001-1500 | Kshs 18 | Kshs 3.6 | Kshs 21.6 |
| Kshs 1501-2500 | Kshs 20 | Kshs 4 | Kshs 24 |
| Kshs 2501-70000 | Kshs 25 | Kshs 5 | Kshs 30 |
How Much Does Fuliza Charge for Kshs 1000 and Below?
If you borrow Kshs 1000 or less and repay it within three days or less, you will not be charged the daily maintenance fee. However, the 1% access fee still applies. For example:
- If you borrow Kshs 1000, you will only pay the 1% access fee (i.e., Kshs 10) if you repay it within three days.
If you borrow over Kshs 1000 and fail to repay it within the three-day window, the daily maintenance fee will apply.
How to Opt Into Fuliza M-Pesa
If you don’t have Fuliza activated yet, here’s how to sign up:
- Dial *USSD code 334# on your phone.
- Follow the prompts to enroll in the service.
- After enrollment, your Fuliza loan limit will be activated.
Your Fuliza limit will depend on your M-Pesa transaction history and timely repayments.
Fuliza for Businesses: Fuliza ya Biashara
In addition to personal use, Fuliza ya Biashara is available for business owners to access unsecured credit via their M-Pesa business tills. This service helps businesses manage cash flow and complete transactions even when their till account is insufficient.
Business Loan Charges
| Amount Borrowed | Access Fee (Kshs) | Daily Maintenance Fee (Kshs) |
|---|---|---|
| 1 – 999 | Kshs 0 | Kshs 0 |
| 1,000 – 2,499 | Kshs 12 | Kshs 0 |
| 2,500 – 5,000 | Kshs 30 | Kshs 0 |
| 5,001 – 15,000 | Kshs 50 | Kshs 0 |
| 15,001 – 35,000 | Kshs 150 | Kshs 0 |
| 35,001 – 70,000 | Kshs 200 | Kshs 0 |
| 70,001 – 100,000 | Kshs 250 | Kshs 0 |
| 100,001 – 400,000 | Kshs 250 | Kshs 0 |
Fuliza Business Overdraft: Interest Rates
For businesses opting into Fuliza ya Biashara, the service charges a 2% access fee and a tiered daily access fee based on the amount borrowed.
Fuliza Interest Rates – Wrapping Up
Fuliza is a convenient and accessible service for M-Pesa users looking for quick overdraft loans. The interest rates are relatively lower compared to other credit facilities in Kenya, making it a popular choice. Keep in mind that timely repayment is crucial for maintaining a good Fuliza limit, which allows for more flexibility in the future.
Whether you’re using Fuliza for personal transactions or for your business, make sure you understand the interest rates and fees to avoid excessive charges. Keep track of your usage and pay off your loans on time to enjoy the full benefits of this service.
Happy borrowing!