When you have growing bills, yet you don’t have quick cash, it makes sense to borrow some money for upkeep. You can hire a loan from many bankers including your bank, Mshwari, KCB-M-Pesa, Tala, or Eazzy Loan. The difficulty with borrowing a loan is that it comes with many terms and conditions, higher interest rates, and short repayment times. Nevertheless, the situation is becoming much reliable with many entrants in the mobile short-term loans division. Safaricom Limited newly introduced Fuliza loans, which is a setting that enables you to complete your M-PESA transactions even when you don’t have enough cash in your account.
You may have heard about Fuliza, and you are querying what it is all about. Learn about this loan service, its term and conditions, and how to check if you are really qualified for a Fuliza loan.
What are Fuliza loans?
Fuliza loans also known as Fuliza M-Pesa is an overdraft department for all M-Pesa users. The facility enables you to complete your M-Pesa transactions even when you have insufficient cash in your account. In reality, Fuliza M-Pesa is like a bank overdraft. It is a commodity of CBA Bank, that is administered through Safaricom’s popular M-Pesa. Note that although many people call it Fuliza loans, it is not a loan. According to Safaricom limited, Fuliza is a continuous overdraft service.
That indicates if you want to buy items and you have inadequate funds in your M-Pesa account, Safaricom will finance the difference. Now, as soon as you deposit some cash into your Mpesa account, the company will deduct their amount given to you plus a little facility fee or interest. The amount of cash you can have through Fuliza will depend on your set Fuliza overdraft limit.
With Fuliza loan, you can use the overdraft facility as many times as desirable. Nevertheless, it would be best if you were within your designated limit to enjoy the service. Safaricom Ltd may from time to time prescribe a maximum and minimum Facility you may request on Fuliza. It is known as the overdraw limit.
Safaricom will perpetually review the limit and fully reserve the right to vary it without giving you any reasons at all. If you want to improve your Fuliza M-Pesa limit, you must maintain using M-Pesa and Safaricom services frequently. You must additionally repay your Fuliza loan on time by toping up your Mpesa account.
How to get Fuliza loan?
So, how do you get a good Fuliza loan? To apply for the Fuliza M-Pesa, you must be a designated M-Pesa customer with an active Safaricom sim card. The line must have been working for the last six months to use the Fuliza service. You can opt into the service by dialling *234# from your Safaricom line. Alternatively, you can use the Safaricom’s App to opt into the service.
Fuliza M-Pesa repayment
Once you opt into this Fuliza M-Pesa service, you will be accountable for the payment of all applicable charges. Safaricom will deduct the fees instantly when you top up your M-Pesa account. The fees are subjected to change at any time at Safaricom’s sole consideration.
Interest and service fees
Safaricom will accredit you the standard M-Pesa transaction fees when you use Fuliza. Also, the company will charge you support and an access fee of 1% on your outstanding Fuliza balance. The table shown below represents the interest and service fees charged for using the service.
Fuliza loans: application, repayment, terms and conditions
Where to use Fuliza?
You can use the Safaricom’s Fuliza service to perform various transactions. These include:
To send money to any registered and unregistered M-Pesa users.
You are making payments via all “Lipa Na M-Pesa” transactions.
Even though you can send money and make any payments, you cannot withdraw the Fuliza funds.
Fuliza terms and conditions
Safaricom has various terms and conditions concerning the Fuliza M-Pesa Service. The following is a summary of the most crucial Fuliza terms and conditions you should know.
Requesting a facility
- A facility implies any funds Safaricom advances to your M-Pesa account. These funds enable you to complete payments for all services and also transactions. You can only use these overdraft funds when you have a low balance in your Safaricom M-Pesa account.
- Once you opt into the loan service, Safaricom will send you a validation message telling your Overdraw limit. An overdraw limit is simply the maximum facility amount of money that Safaricom allows you to use on the Fuliza service.
- If Safaricom does not designate an overdraw limit on your account, you must continue using Safaricom or M-Pesa services to build a good transaction history. It would be best if you enhanced your credit score first to get a logical overdraw limit.
- Safaricom will evaluate the overdraw limit from time to time and will modify yours without giving any grounds.
- If you have any outstanding facility or overdue amounts for more than 30 days, Safaricom will waive your right of using the service forthwith.
Repaying the facility
- If you do not default on your loan payments, you will use the Fuliza service on an ongoing or constant basis for 30 days.
- Once the term of the facility lapses, Safaricom reserves the sole discretion of extending or renewing your Facility term.
Events of default
- You will be considered to have defaulted if your facility is due or outstanding for 30 days or more. It can also occur if you exceed your allocated overdraw limit.
- If you default on the Fuliza loan service, Safaricom will terminate the service. The company will further suspend or discontinue your Fuliza registration and access to the service.
- Safaricom will likewise take necessary measures to recover the amounts of money in default. The measures may involve using an independent debt collection agency to recover the amounts.
The advantage of using the Safaricom overdraft Fuliza is that you can continue spending for goods or services even when you have inadequate balance in your M-Pesa account. Even though the service seems convenient, you should only use it to obtain short-term borrowing. If you choose to use the overdraft, ensure you manage it like any other debt to avoid the spiralling of debts.
Before using the exciting Fuliza loans, first, ensure you read the terms and conditions. Most people overlook them unaware that their overdraft may be withdrawn at any time. It would be best if you also read the terms to know your rights, how to obtain Fuliza, how to make payments, and how much you will be imposed for the service. Read the part on the consequences of defaulting loans. It will give you an idea about what will happen if you do not pay the facility on time.