• Privacy & Policy
  • Contact
Trendie News
  • Home
  • Education
  • Politics
  • Entertainment
  • Health
  • Business
  • Contact
No Result
View All Result
  • Home
  • Education
  • Politics
  • Entertainment
  • Health
  • Business
  • Contact
No Result
View All Result
Trendie News
No Result
View All Result

Safaricom M-Pesa introduces new interest-free (zero) loans. Under the aforementioned program

Vee K by Vee K
July 8, 2022
in Business News
0
Safaricom M-Pesa introduces new interest-free (zero) loans. Under the aforementioned program
415
SHARES
2.3k
VIEWS
Share on FacebookShare on Twitter

In the latest  move that is expected to upend the mobile loans industry, Safaricom has introduced a zero-interest credit facility that would enable millions of its customers to shop for items up to Sh100,000 and pay later.

The users of the interest-free Faraja product can spend as little as Sh20 and as much as Sh100,000 on goods and services while paying the same amount without the extra fees associated with conventional credit products.

Now at the point of sale for the product that Equity Bank will finance, just the standard M-pesa transaction fees will be applicable.

This new program,Faraja is somewhat comparable to the Lipa Later service now available on the market, with the difference being that customers would this time leave with the items from a list.

With similar to the Lipa Later service that is currently available, Faraja allows customers to purchase items directly from a list of chosen merchants without having to pay for them in full up front or in installments.

A given  user will have a credit limit of up to Sh100,000, depending on their credit score, to make purchases against and then repay at a later time within the 30-day window. It will function similarly to a digital credit card.

As per  to Safaricom’s websites, business owners will only be charged a maximum of Sh210 for payments made at the till that are between Sh50,000 and Sh150,000.

Quite a number of bank-backed microlending apps are likely to face competition from the new credit service.

This Digital loans are a quick answer for daily expenses because to Safaricom’s dominance in the mobile loans market, where borrowers receive loans within minutes via their cell phones.

For instance M-Shwari, which was introduced in 2012 on the Safaricom mobile money platform M-Pesa, has grown to be a significant growth engine for both Safaricom and NCBA. On the other side, KCB M-Pesa debuted in March 2015.

The borrowers of M-Shwari loans are required to pay a facility fee of 7.5 percent, which equates to an annualized interest rate of 90 percent. The cost for KCB M-Pesa is 8.64 percent.

Back in January 5, 2019, the Fuliza overdraft facility went live thanks to a collaboration between KCB Group, Commercial Bank of Africa, which has since merged into NCBA, and the Fuliza Group.

This  price on Fuliza is 1.083 percent each day or 395.2 percent annualized, highlighting the enormous cost of often using short-term loan facilities.

After their initial joint platform, M-Kesho, Safaricom and Equity will now embark into a cooperation for the second time.

Previous Post

KNEC Training Of Examiners 2022

Next Post

Merit Lists For TSC Recruitment By County For July 2022 Recruitment TSC

Next Post
Merit Lists For TSC Recruitment By County For July 2022 Recruitment TSC

Merit Lists For TSC Recruitment By County For July 2022 Recruitment TSC

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending Now

Ministry of Education caps secondary school fees at Sh53,000
Education News

Ministry of Education caps secondary school fees at Sh53,000

2 weeks ago
Tough and Strict conditions Issued To Schools By The MoE Ahead of Junior Secondary Admission.
Education News

Headache For Parents With Children in Public Schools Ahead of Junior Secondary Transition

3 weeks ago
Tough and Strict conditions Issued To Schools By The MoE Ahead of Junior Secondary Admission.
Education News

Tough and Strict conditions Issued To Schools By The MoE Ahead of Junior Secondary Admission.

3 weeks ago
TSC To Begin Training Junior Secondary School Teachers This January
Education News

TSC To Begin Training Junior Secondary School Teachers This January

4 weeks ago
  • Privacy & Policy
  • Contact

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Home
  • Education
  • Politics
  • Entertainment
  • Health
  • Business
  • Contact

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.