In the bustling world of mobile financial transactions, Safaricom’s Fuliza stands out as a game-changer, offering a continuous overdraft service to M-PESA users.
This service ensures that you can seamlessly complete transactions even when your M-PESA account is running low on funds.
However, before diving into Financial Flexibility with Fuliza, it’s crucial to understand the interest rates and calculate repayments for a more informed financial journey.
Safaricom, East Africa’s telecommunications giant, teamed up with NCBA and Kenya Commercial Bank Limited (KCB) to introduce Fuliza in 2019.
Since then, over 7 million Kenyans have embraced this accessible and affordable credit facility, transforming it into the go-to solution for quick and hassle-free financial transactions.
So, what exactly is Fuliza, and how can you make the most of it? Fuliza is a continuous overdraft service exclusively available to active M-PESA users with a Safaricom M-PESA line.
To leverage this service, one must have been an active network user for at least six months. Your allocated Fuliza limit, used for purchasing airtime, goods, bill payments, and money transfers, is subject to revision based on your usage patterns and timely repayments.
Enrolling in Fuliza is a breeze. Dial *334# on your phone, follow the prompts, and voila! You’re ready to tap into the financial flexibility Fuliza offers.
Now, let’s delve into the nitty-gritty of Fuliza interest rates. When you apply for a Fuliza loan, a one-time 1% access fee is charged, accompanied by a daily maintenance fee that varies depending on the loan amount.
These charges are applied at midnight the following day. Failure to repay within the stipulated period incurs a 20% excise duty on the access fee.
For a clearer understanding, here’s a Fuliza interest rate calculator:
- 0-100 Kshs: Tarriff (Kshs) – 0 | Excise duty (Kshs) – 0 | Total charges (Kshs) – 0
- 101-500 Kshs: Tarriff (Kshs) – 2.5 | Excise duty (Kshs) – 0.5 | Total charges (Kshs) – 3
- 501-1000 Kshs: Tarriff (Kshs) – 5 | Excise duty (Kshs) – 1 | Total charges (Kshs) – 6
- 1001-1500 Kshs: Tarriff (Kshs) – 18 | Excise duty (Kshs) – 3.6 | Total charges (Kshs) – 21.6
- 1501-2500 Kshs: Tarriff (Kshs) – 20 | Excise duty (Kshs) – 4 | Total charges (Kshs) – 24
- 2501-70000 Kshs: Tarriff (Kshs) – 25 | Excise duty (Kshs) – 5 | Total charges (Kshs) – 30
Now, what if you borrow Kshs 1000 or below for three days or less? In such cases, the daily maintenance fee is waived, but the one-off 1% access fee remains unchanged.
Business owners can also benefit from Fuliza through Fuliza ya Biashara. This service allows overdrawing through M-Pesa business tills, providing unsecured credit to address day-to-day cash flow challenges. The overdraft ranges from Kshs 1000 to Kshs 400,000, depending on the assigned limit.
To opt into Fuliza ya Biashara, dial *234# on your phone, follow the prompts, and enjoy financial flexibility for your business. The interest rates for Safaricom business overdraft vary based on the loan amount:
- 1-999 Kshs: Tariff (Kshs) – 0
- 1000-2499 Kshs: Tariff (Kshs) – 12
- 2500-5000 Kshs: Tariff (Kshs) – 30
- 5001-15000 Kshs: Tariff (Kshs) – 50
- 15001-35000 Kshs: Tariff (Kshs) – 150
- 35001-70000 Kshs: Tariff (Kshs) – 200
- 70001-100000 Kshs: Tariff (Kshs) – 250
- 100001-400000 Kshs: Tariff (Kshs) – 250
In conclusion, Fuliza’s interest rates are a breath of fresh air compared to other credit institutions, offering not only accessibility but also lower interest rates. Your limit is dynamic, subject to revision with each repayment, and the potential for accessing higher limits in the future.
Disclaimer: This article serves as a general information resource and is not sponsored by any third party. It is not a substitute for professional advice, and any action taken based on this information is at your own risk. Stay informed, be Financial Flexibility with Fuliza!
Common Questions About Fuliza Interest Rates and Repayments: Unveiling the Answers
- Q: What is Fuliza, and how does it work?
A: Fuliza is a continuous overdraft service provided by Safaricom in collaboration with NCBA and KCB. It allows M-PESA users to complete transactions even when their M-PESA accounts have insufficient funds. Users can borrow within their Fuliza limit for various purposes such as buying airtime, paying bills, and sending money.
- Q: How do I enroll in Fuliza M-Pesa?
A: Enrolling in Fuliza M-Pesa is simple. Dial *334# on your phone, follow the prompts, and you’re ready to enjoy the convenience of the overdraft service.
- Q: Who is eligible for Fuliza?
A: Fuliza is available to registered M-PESA users with a valid Safaricom M-PESA line. Users must have been active on the network for at least six months to qualify for the service.
- Q: How is the Fuliza limit determined?
A: The Fuliza limit is allocated based on your activity on the network and is subject to revision, either upwards or downwards, depending on your usage patterns and timely repayments.
- Q: What are the interest rates for Fuliza loans?
A: When you apply for a Fuliza loan, you’re charged a one-off 1% access fee and a daily maintenance fee based on the loan amount. If the loan is not repaid within the specified period, a 20% excise duty is applied to the access fee.
- Q: Can I use Fuliza as many times as I want?
A: Yes, you can use Fuliza as many times as you want, as long as you stay within your allocated limit and make timely repayments.
- Q: Is there a difference in interest rates for business owners using Fuliza ya Biashara?
A: Yes, Fuliza ya Biashara offers unsecured credit to business owners. The interest rates vary based on the loan amount, ranging from zero for amounts below 1000 Kshs to 250 Kshs for amounts between 100,001 and 400,000 Kshs.
- Q: How do I calculate Fuliza loan repayment?
A: Use the Fuliza interest rate calculator provided in the article. It breaks down the tariff, excise duty, and total charges based on different loan amounts.
- Q: Can I borrow Kshs 1000 or below without paying the daily maintenance fee?
A: Yes, if you borrow Kshs 1000 or below and repay within three days, you won’t be charged the daily maintenance fee. The one-off 1% access fee remains unchanged.
- Q: Are there any hidden charges with Fuliza?
A: No hidden charges. Fuliza’s interest rates are transparent, comprising the one-time access fee, daily maintenance fee, and, if applicable, a 20% excise duty for late repayments.
Feel free to ask any additional questions or seek further clarification on Fuliza interest rates and repayments!