Paying a Mshwari loan on time is crucial for maintaining your credit limit and qualifying for future loans. While Mshwari allows for loan repayment via Mpesa, Fuliza, Kenya’s mobile overdraft service, can also be used to settle an overdue Mshwari loan. However, this method isn’t as straightforward as using Mpesa directly. In this guide, we’ll walk you through the steps of how to pay your Mshwari loan using Fuliza, making it easier for you to manage your finances.
What is Mshwari and Fuliza?
Mshwari is a mobile lending platform offered by Safaricom in partnership with CBA Bank, allowing users to borrow small amounts of money through Mpesa. The loan amounts are generally small, with a 9% facilitation fee charged, and the loans must be repaid within 30 days.
Fuliza, on the other hand, is a service by Safaricom that allows customers to complete Mpesa transactions even when their account balance is insufficient. Fuliza works by topping up your Mpesa balance to complete the transaction, effectively offering a temporary overdraft.
How to Pay Mshwari Loan Using Fuliza
Although Fuliza doesn’t directly facilitate Mshwari loan repayments, you can still use it to transfer money to your Mshwari account. Here’s how:
1. Prepare Two Safaricom Lines
To use Fuliza for Mshwari loan repayment, you need two Fuliza-activated Safaricom lines:
- Line 1: The line with the Mshwari loan.
- Line 2: The line with the Fuliza limit, which will be used to transfer funds.
2. Send Money from Line 2 to Line 1 (Mshwari Account)
Follow these steps to send money from Line 2 (with Fuliza) to Line 1 (with the Mshwari loan):
- Go to the Mpesa menu on Line 2.
- Select “Send Money”.
- Enter the phone number associated with the Mshwari loan (Line 1).
- Enter the amount you wish to transfer (based on your Fuliza limit).
- Enter your Mpesa PIN and click OK to complete the transaction.
The money will be sent to Line 1, which is the phone number associated with your Mshwari loan. Now, you can use this money to settle your Mshwari loan.
3. Repay the Mshwari Loan via Mpesa
After transferring the money to Line 1, follow these steps to repay your Mshwari loan:
- On Line 1, go to the Mpesa menu.
- Select “Loans and Savings”.
- Choose “Mshwari” and then “Loan”.
- Select “Pay Loan”.
- Enter the amount you want to repay (the amount transferred via Fuliza).
- Enter your Mpesa PIN and click Send.
Once completed, your Mshwari loan will be settled, and you will receive an SMS confirming the transaction.
How to Pay Mshwari Loan Using Paybill (Alternative Method)
Mshwari doesn’t have a specific Paybill number, but you can still use Mpesa to pay your loan directly. Here’s how:
- Go to the Mpesa menu.
- Select “Loans and Savings”.
- Choose “Mshwari” and select “Pay Loan”.
- Enter the loan amount and your Mpesa PIN.
- Click OK to complete the transaction.
After completing the payment, you’ll receive a confirmation SMS from Safaricom.
How Fuliza Helps with Mshwari Loan Payment
While Fuliza doesn’t allow you to directly pay your Mshwari loan, it can help by providing funds when your Mpesa account balance is insufficient to complete a transaction. Here’s a quick breakdown of how Fuliza aids in this process:
- Borrow Fuliza funds when you don’t have enough balance in your Mpesa account.
- Send the borrowed Fuliza funds to the Safaricom number associated with the Mshwari loan.
- Repay your Mshwari loan using the transferred funds.
In this way, Fuliza acts as a temporary overdraft service, allowing you to make transactions even when your account balance is low.
Mshwari Loan Repayment FAQs
Can I pay Mshwari Loan Using Fuliza Directly?
No, Fuliza cannot be used to pay a Mshwari loan directly. However, you can use Fuliza to send money to the Mshwari loan account, then repay the loan via Mpesa.
Why is My Mshwari Limit Set to 0?
Your Mshwari loan limit may be set to 0 if you fail to repay your loan within 60 days. If the loan defaults for 90 days, your limit may remain at zero, and you may be listed as a defaulter with the CRB (Credit Reference Bureau). To restore your limit, you need to pay off your outstanding loan and clear your CRB status.
How Long Does It Take to Settle a Mshwari Loan with Fuliza?
Once the Fuliza funds are transferred, you can repay the loan almost immediately. The processing time for sending funds is usually very quick, but you should allow up to 24 hours for the full reversal and loan clearance.
Conclusion
Using Fuliza to pay your Mshwari loan is a great option if you don’t have enough funds in your Mpesa account to repay the loan. By following the steps outlined above, you can easily transfer Fuliza funds and settle your loan. Always remember to repay your loans on time to keep your Mshwari limit growing and maintain a good credit history with Safaricom.
Happy repaying!