M-Pesa Taasi Pochi is a loan product specifically designed for Pochi La Biashara customers, offered by Safaricom in partnership with Pezesha Africa Limited. The product provides instant credit ranging from KES 1,000 to KES 250,000 with a transparent and competitive fee structure tailored for small business owners in Kenya's informal sector.
M-Pesa Taasi Pochi Loan Duration Options
Taasi Pochi offers three flexible repayment periods to accommodate different business cash flow cycles:
7-Day Loan
- Target Use: Weekly business cycles and immediate working capital needs
- Best For: Quick inventory restocking, covering weekly operational expenses
- Typical Scenario: Short-term cash flow gaps in weekly business operations
14-Day Loan
- Target Use: Bi-weekly business planning and medium-term investments
- Best For: Purchasing stock for two-week periods, equipment maintenance
- Typical Scenario: Covering expenses between major business collections
30-Day Loan
- Target Use: Monthly business cycles and larger investments
- Best For: Seasonal inventory, significant equipment purchases, business expansion
- Typical Scenario: Monthly working capital requirements and growth investments
M-Pesa Taasi Pochi Loan Complete Interest Rate Structure
Applied Interest Rates
| Loan Duration | Interest Rate | Application Method |
|---|---|---|
| 7-Day Loan | 3.85% | Applied once at loan origination |
| 14-Day Loan | 4.71% | Applied once at loan origination |
| 30-Day Loan | 6.41% | Applied once at loan origination |
Critical Understanding: The interest is applied once at the beginning of the loan term. Whether you repay on the first day or the last day of the repayment period, the total amount repayable remains the same (principal plus the predetermined interest).
Access Fee Structure
Universal Access Fee: 2.76% of the principal amount
- Applied as a one-time charge at loan disbursement
- Same rate across all loan durations
- Non-refundable processing fee for loan origination
Complete Fee Breakdown
7-Day Loan Cost Structure
- Interest Rate: 3.85% (applied once)
- Access Fee: 2.76% (one-time)
- Total Cost: 6.61% of loan amount
14-Day Loan Cost Structure
- Interest Rate: 4.71% (applied once)
- Access Fee: 2.76% (one-time)
- Total Cost: 7.47% of loan amount
30-Day Loan Cost Structure
- Interest Rate: 6.41% (applied once)
- Access Fee: 2.76% (one-time)
- Total Cost: 9.17% of loan amount
Default and Penalty Structure
Default Definition
An "Event of Default" occurs when:
- Failure to make payment when due, not remedied within one day of notice
- Bankruptcy or legal insolvency proceedings
- Composition with creditors due to inability to pay debts
- Any legal event affecting ability to repay
Penalty Fees for Default
Default Penalty Rate: 1% per day
- Applied for a maximum period of 7 days
- Calculated on the outstanding loan balance
- Starts after the borrower receives default notice and fails to remedy within one day
Maximum Penalty Calculation:
- Outstanding Amount × 1% × 7 days = Maximum penalty
- Example: KES 20,000 loan = KES 200 per day × 7 days = KES 1,400 maximum penalty
