MShwari is a popular mobile banking service available to all Safaricom subscribers with active M-Pesa lines. The service enables users to borrow loans and save towards specific goals using the ‘MShwari Lock Savings account. However, some users face challenges with their MShwari loan limit being set to zero. This guide explores why this happens and provides actionable steps to restore and increase your loan limit.
How to Activate MShwari Service
Activating the MShwari service is straightforward. Follow these steps:
- Navigate to SIM Toolkit
- Select ‘M-Pesa’
- Select ‘Activate/Wezesha’
Once activated, you can apply for MShwari loans ranging from a minimum of Ksh 1,000 to a maximum of Ksh 1,000,000. The loans are charged a 9% facilitation fee and must be repaid within 30 days.
Why Is My MShwari Loan Limit Zero?
MShwari uses an automated system to evaluate several factors before assigning a loan limit. Below are the main reasons why your loan limit may be zero:
1. Minimal M-Pesa Duration
To be eligible for an MShwari loan, you must be an M-Pesa subscriber for at least six months. This prevents individuals from exploiting the system by creating new accounts solely to access loans.
2. Lack of MShwari Savings
Regular savings on MShwari can improve your loan eligibility. While savings don’t directly equate to a higher loan limit, they demonstrate financial responsibility.
3. Minimal M-Pesa Transactions
Active use of M-Pesa services—such as sending and withdrawing money, purchasing airtime, and using Lipa na M-Pesa—signals financial activity, which increases your loan eligibility.
4. Late Loan Repayments
MShwari loans have a repayment period of 30 days, with a possible 30-day extension at an additional 9% fee. Consistently late repayments can lead to reduced loan limits or penalties.
5. CRB Blacklisting
Defaulting on loans may result in being listed by Credit Reference Bureaus (CRB), which can permanently set your loan limit to zero.
6. Low Usage of Other Safaricom Services
Frequent usage of Safaricom’s voice, data, and SMS services is another factor considered in loan limit evaluation. Active engagement with these services can improve your loan eligibility.
How to Restore and Increase Your MShwari Loan Limit
If your loan limit is zero, taking the following steps can help restore and increase it:
1. Pay Bills via M-Pesa
Use M-Pesa services to pay bills, buy airtime, and make purchases. Regular transactions create a digital footprint, proving your financial activity and creditworthiness.
2. Avoid Deleting Payment SMS Messages
Keep all SMS records of M-Pesa transactions. These messages serve as proof of your transaction history and financial activity.
3. Clear Outstanding Loans
Ensure all existing mobile loans are repaid on time to avoid negative listings. Early repayments improve your credit score.
4. Request Loans Occasionally
Occasionally request small loans and repay them promptly. This builds your credit history and increases your chances of receiving higher loan limits in the future.
5. Save Regularly on MShwari
Make consistent deposits into your MShwari savings account. Higher savings show financial stability, which positively impacts your loan limit.
Conclusion
A zero MShwari loan limit can be frustrating, but understanding the factors influencing loan limits can help you take corrective actions. By maintaining a strong M-Pesa usage history, making timely loan repayments, and saving regularly, you can rebuild and increase your MShwari loan limit over time. Consistency and financial discipline are key to unlocking higher loan amounts on MShwari.
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