How To Pay Your Mshwari Loan

This is a simple guide on how to pay your Mshwari loan. M-Shwari is a mobile savings and loans solution offered through M-PESA. It was launched on 27th November 2012 through a partnership between Commercial Bank of Africa (CBA) and Safaricom. 

This product enables you to open and operate an M-Shwari bank account through Mpesa without having to visit any bank to fill out bank account opening forms. M-Shwari also gives you access to instant loans of a minimum of Ksh 100. 

Requirements to have an M-Shwari Account

  • You need to be a registered Safaricom Subscriber.
  • You need to be a registered Safaricom Mpesa customer.
  • You need to have an active Safaricom Mpesa account/line.
  • You need to hold any of the following identification documents; Kenya National Identification Document (ID); Kenyan Passport Document; Alien ID (resident Permit) registered by the Government of Kenya.

How to Activate M-Shwari

To activate Mshwari, go to the Safaricom menu and select M-Pesa.  Then select Activate or Wezesha. The new M-PESA menu with M- Shwari menu will be sent to your line. Select the M-Shwari link. A message will appear requesting you to read and accepted the Terms & Conditions. After accepting the terms, an SMS will be sent informing you that you are now activated on the M-Shwari service.

M-Shwari doesn’t have ledger fees, limit on the frequency of withdrawals, minimum operating balance or charges on deposits (M-PESA to M-Shwari Account).

How to Withdrawal Money from M-Shwari

  • Go to your ‘M-PESA’ menu and select ‘M-Shwari
  • Select ‘Withdraw from bank’
  • Enter Amount
  • Enter PIN
  • Confirm these details then press OK
  • Wait for a confirmation SMS message

How to Qualify for M-Shwari Loan

In order to qualify for a loan, you will have to be an active M-PESA user for at least 6 months, save regularly on M-Shwari account and continuously use other Safaricom services such as Voice, DATA and M-PESA.

How to Apply For M-Shwari Loan 

  • From ‘M-Shwari’ menu, select ‘LOAN’
  • Select ‘Request Loan’
  • Enter Amount
  • Enter PIN
  • Confirm the message displayed for example “request loan Kshs 2000” then press OK.
  • An initial SMS message will be sent immediately on confirmation of request for loan.
  • A second SMS message will be sent on a successful or unsuccessful request.

How to Check Mshwari Loan Limit

  • Dial *243#
  • Select  1 for M-Pesa Products
  • Select 1 for M-Shwari
  • Select 3 for Loan Limit request
  • You will receive a message with your Loan Limit

M- Shwari Loan Interest

The M-Shwari loan does not attract any interest. However, they charge a 7.5%  loan facilitation fee payable only once for each loan taken.

How To Pay Your Mshwari Loan

  • From ‘M-Shwari’ menu, select ‘LOAN’
  • Select ‘Pay Loan’
  • Enter Amount you want to pay
  • Enter PIN
  • Confirm the message displayed for example “pay loan Kshs 2000” then press OK.
  • An SMS message will be sent on successful or unsuccessful request.

If you fail to pay your loan within 30 days, the loan repayment period will be extended for an additional 30 days and you will be charged an additional 7.5% facilitation fee on your outstanding loan balance. Failure to settle the M-Shwari loan utilized in 120 days will lead to negative CRB listing.