M-Shwari, a mobile lending platform and a product of NCBA Bank Kenya Plc, and Safaricom Ltd Plc, has raised the minimum loan size to Sh2,000 up from a previous Sh500.
Kenyans who want to borrow less than Sh2000 will be relegated to use the daily overdraft service Fuliza which is more expensive but structured to lower defaults.
M-Shwari charges borrowers a facility fee of 7.5pc when applying for the loans, this amounts to an annualized interest rate of 90pc. Fuliza, on the other hand, Â charges 1.083pc or 395.2pc annually.
NCBA Group managing director John Gachora yesterday told the Business Daily that the changes will bring a clear product differentiation for borrowers seeking digital loans through Fuliza, M-Shwari or Stawi products in which the lender participates.
Back in April, when the Coronavirus pandemic had just hit, M-Shwari customers who were previously expected to pay their debts in at least 30 days, failure to which you could be listed on CRB. were offered a 100pc increment on this duration to 60 days.
To qualify for a higher loan limit; one is required to have repaid the first loaned amount on time, and also increase your saving amount in your account.
Loan disbursement is done through Mpesa and processed in less than five minutes.
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