Mshwari Loan Limit: The service is accessible to all Safaricom subscribers with active M-Pesa lines which they can use to borrow loans in addition to saving towards a particular goal via the ‘MShwari lock savings’ account.
To activate the Mshwari service,
- Navigate to SIMtoolkit
- Select ‘M-Pesa’
- Select ‘Activate/Wezesha’
By doing this, one is able to apply for MShwari loans that range from a minimum of Ksh1,000 up to a maximum of Ksh1M charged at 9% for a 30-day period.
However, approval of MShwari loans is subject to a variety of factors whereby loan limits are assigned on an individual basis.
Why Is My MShwari Loan Limit Zero?
Upon consideration of various individual factors by the MShwari systems, a loan limit is assigned. However, there are instances upon which the system allocates a zero limit.
Below are some of the reasons leading to the aforementioned outcome.
1. Minimal M-Pesa duration
One of the eligibility requirements for receiving an MShwari loan is that an applicant should be an M-Pesa subscriber for a minimum period of 6 months.
This averts the possibility of opportunistic individuals registering for multiple loans without the intention of repaying them back.
2. Lack of MShwari savings
In order to improve the chances of increasing the MShwari loan limit, one is advised to save regularly on MShwari.
Note: However, this does not translate to receiving an equivalent loan limit to MShwari savings.
3. Minimal M-Pesa transactions
Regularly using M-Pesa services such as sending/withdrawing, airtime purchases, Lipa na M-Pesa, etc. denotes an active account as well as financial ability to make repayments.
4. Late repayments
MShwari loans have a repayment period of 30 days with an extension period of a further 30 days attracting a similar fee of 9%
Frequent late repayments may result in a reduction of loan limits and possible penalties upon default.
5. CRB blacklisting
Another reason why MShwari loan limits may be zero is due to loan defaults resulting in being blacklisted by the credit reference bureaus.
Being blacklisted by CRB denies the possibility of accessing future loans from lenders.
6. Low usage of other Safaricom services
In order to increase the MShwari limit, other Safaricom services such as voice and data are taken into account. This is such that frequent usage of these services implies an active Safaricom line.
How To Restore Your M-Shwari loan limit
M-Shwari’s maximum loan limit is Ksh. 50,000, and there are numerous factors that would increase your limit to the mentioned figure. So. if your loan limit is zero, there are steps you need to take to increase it.
Today am going to share with you how you can quickly increase the number of loans you can get on Mshwari as follows:
1. Pay your Bills via MPESA
Many mobile carriers offer a wide range of mobile payment services e.g M-PESA, Lipa Na M-PESA, etc
Ensure you frequently use these services whether buying airtime credit or paying for goods or services. Doing this enables you to leave behind transaction trails in the system database that proves that you actually use that particular service.
2. Do not delete mobile payment SMS messages
Whenever you receive or send money via any mobile payment service (Mpesa, Airtel Money, Orange Money, etc) do NOT delete the messages.
This goes for when you purchase airtime or pay for goods and services via these platforms.
3. Earlier loan repayments
Make sure you clear any other mobile loans to avoid being listed negatively.
4. Request for a loan occasionally
Requesting for a loan and making early repayments increases your digital footprint in their system, thereby increasing your creditworthiness thus providing you access to a much larger loan amount in the future.
5. Save Regularly
Saving regularly on your Mshwari account will definitely increase the limit of your Mshwari loans. The more your save the higher the loan limit.