M-Shwari is a savings and loan service that enables M-PESA customers to save as little as Kshs. 1 and access credit from Kshs. 1,000, earn interest of up to 6.3% p.a. on savings balance, save for a fixed period of time, and access loans instantly. The service operates entirely through mobile phones, eliminating the need for traditional banking procedures such as visiting branches or filling out extensive paperwork.
M-Shwari Key Features and Benefits
Savings Account Features
- Minimum Savings: Customers can save as little as Ksh1 and earn interest at rates of up to 5% p.a. on their savings
- No Banking Fees: There are no ledger fees, no limits on the frequency of withdrawals, no minimum operating balance and no charges on deposits for M-PESA to M-Shwari Account
- Easy Access: Your M-Shwari account is only accessible through your mobile phone via the M-PESA menu on your Safaricom line
- Interest Earnings: Earn interest of up to 6.3% p.a. on your savings balance
Loan Features
- Loan Range: Access loan limits from as low as Ksh.100 and up to Ksh.50,000
- Repayment Period: Enjoy a one month repayment period
- Facilitation Fee: The loans from M-Shwari attract a one-time facilitation fee of 7.5% of the borrowed amount
- Flexible Repayment: Loan repayment can be made via M-PESA, or from the M-Shwari account
Requirements and Eligibility
Basic Requirements
To access M-Shwari services, customers must meet the following criteria:
- Be at least 18 years old and a registered and active M-PESA Subscriber
- Have an active Safaricom line with M-PESA services
Loan Qualification Requirements
To qualify for loans through M-Shwari, customers must:
- Be an M-PESA subscriber for at least 6 months
- Save regularly on M-Shwari account
- Actively use other Safaricom services such as voice, data and M-PESA
Step-by-Step Guide: How to Access M-Shwari
Activating M-Shwari Account
To join M-Shwari: Go to your M-PESA menu, select "My account" and "Update menu" then go to your M-PESA menu, select Loans and Savings, M-shwari, click on activate account and accept terms and conditions.
How to Request a Loan
The loan application process is straightforward:
- Access the M-PESA menu
- Select Loans and Savings
- Select M-Shwari
- Select Loan
- Request Loan
- Enter amount
- Enter your M-PESA PIN
- Loan amount will be sent to your M-PESA Account. The loan amount to be paid will be inclusive of the facility fee
Steps to Check Your M-Shwari Eligibility
- Dial the code: On your Safaricom line, dial *234# to access your M-Pesa menu.
- Navigate M-Shwari: Select Loans and Savings, then M-Shwari.
- Check your limit: Tap on Loan and then select Check Loan Limit.
- Receive notification: An instant SMS will be sent to you, detailing your current loan limit and eligibility.
M-Shwari Lock Savings Account
The Lock Savings Account is a special feature within M-Shwari designed for customers with specific savings goals.
What is Lock Savings?
This is a savings account that allows M-Shwari customers to save for a defined purpose and for a specified amount of time. The funds saved on the M-Shwari lock savings account will be kept in the account until the maturity date; this maturity date is determined by the customer upon opening the account and ranges between one and six months.
Requirements for Lock Savings
- One must be an M-Shwari customer in order to access this service
- The minimum target amount is KSh500
- The minimum amount needed to earn Lock Savings interest is KShs 1000
Lock Savings Benefits
- Deposits in this account will earn higher interest than savings on M-Shwari
- There are no charges levied on the M-Shwari Lock Savings account
- The interest rate is constant during the investment period, and is calculated and paid out monthly or at maturity
- The M-Shwari lock savings period varies from one month to 6 months depending on the customer needs
How to Open a Lock Savings Account
- Go to M-PESA menu, Select Loans and Savings, Select M-Shwari, Open Lock Savings
- Enter Target Amount
- Enter period between 1-6 months
- Enter amount to save
- You will receive an SMS confirmation that your Lock Savings Account has been set up.
Maturity and Withdrawal
- Upon maturity, a notification will be sent via SMS from M-Shwari informing you of the amount saved and the interest earned.
- Upon maturity, the M-Shwari Lockbox savings and the interest earned shall be moved to your M-Shwari account.
- Early Withdrawal: A customer will receive the requested money after 48hours. A customer has the option to withdraw the entire amount or make a partial withdrawal of the funds
Important Terms and Conditions
Account Management
- You may open an M-Shwari Account solely by way of an electronic application made using your Equipment via the M-Shwari Menu on the M-PESA System
- Acceptance by the Bank of your application for an M-Shwari Account shall be done via SMS sent to the Safaricom Mobile Phone Number associated with your M-Pesa Account
Transaction Limits and Security
- The normal M-PESA limits apply for transfers between M-PESA and M-Shwari
- Your money is safe because your M-Shwari account is protected by your M-PESA PIN
- You do not need to opt-in again after a SIM swap, the system will automatically update your M-Shwari account and all the money in your account will be reflected as soon as you reactivate your M-PESA account using your current M-PESA PIN
Loan Management
- When you borrow, the money in your savings account will be frozen to the loan amount and the loan fee. You will only be able to access any balance above the frozen amount. The frozen amount will be accessible once you pay the loan
- During the period the frozen savings will continue to earn interest which will be paid into your M-Shwari at the end of calendar quarter
Account Statements and Customer Support
Statements
- Currently, you can get five recently completed transactions through your mini statement
- You can also request printout statements from all Safaricom retail centers
- You may request one bank statement per year with regards to the funds in your account free of charge at any Safaricom Retail Shop
- Any additional statements within that year will be provided at a cost of twenty five (25) shillings per page over the counter
Customer Support
- Customer requests relating to information, complaints or queries on the Lock Savings Account can be addressed to the bank through Safaricom's Customer Care Centre or Retail Shops
