Fuliza is a continuous overdraft service that allows you to complete your M-PESA transactions even when you do not have enough funds in your M-PESA account. Before you enroll for the overdraft service, you need to know the interest rates so that you can calculate repayment. So, how much do you know about Fuliza interest rates on loans?
Safaricom is the leading telecommunication company in East Africa. In line with its purpose of transforming lives, Safaricom, in partnership with NCBA and Kenya Commercial Bank Limited (KCB), launched the Fuliza overdraft service in 2019. Since then, the service has evolved. There are more than 7 million Kenyans who are using the overdraft service.
What is Fuliza?
Fuliza is a continuous overdraft service available to customers who are registered M-PESA users with a valid Safaricom M-PESA line. It is the most accessible and affordable credit facility in the country. You can use the Fuliza limit to buy airtime on the network, buy goods, pay bills, and send money to registered and unregistered users.
The Fuliza M-Pesa limit is only allocated to those customers who have been active on the network for six months. This means that new customers cannot use the service. Your limit will be revised either upwards or downwards depending on how you use the service. This also depends on whether you make timely repayments for the loan.
The best aspect of using the overdraft service is that you can Fuliza as many times as you want as long as you operate within the limit. So how do you opt into Fuliza M-Pesa? You should dial the USSD code *334#, then follow the prompts to enroll for the service.
Fuliza interest rates on loans
When you apply for a Fuliza loan, you will be charged a one-off 1% access fee and a daily maintenance fee, which varies depending on the amount. The charges are applied the next day at midnight or 00.00 hrs.
If you fail to repay the loan within this period, you will be charged a 20% excise duty on the access fee. Here is the Fuliza interest rate calculator to guide you when calculating repayment.
| Amount | Tarriff (Kshs) | 20% Excise duty (Kshs) | Total charges (Kshs) |
| 0-100 | 0 | 0 | 0 |
| 101-500 | 2.5 | 0.5 | 3 |
| 501-1000 | 5 | 1 | 6 |
| 1001-1500 | 18 | 3.6 | 21.6 |
| 1501-2500 | 20 | 4 | 24 |
| 2501-70000 | 25 | 5 | 30 |
How much does Fuliza charge for Kshs 1000 and below?
The above chart does not apply to customers who borrow Kshs. 1000 and below for a period of three days or less. If you borrow Kshs. 1000 and repay within three days, you will not pay the daily maintenance fee. But, the one-off access fee remains unchanged at 1%.
Fuliza ya Biashara
Business owners can also access unsecured credit by overdrawing through their M-Pesa business tills to solve their day-to-day cash flow issues. This means that they can complete payments even with insufficient funds in their till. They can enjoy an overdraft of between Kshs. 1000 and Kshs. 400,000 depending on the assigned limit.
To opt in to Fuliza ya Biashara, you should dial the USSD code *234# on your phone and follow the prompts. But what is the interest rate for Safaricom business overdraft? Here are all the details you need to know about the tariffs.
| Amount (Kshs) | Tariff (Kshs) |
| 1-999 | 0 |
| 1,000 - 2,499 | 12 |
| 2,500 - 5,000 | 30 |
| 5,001 - 15,000 | 50 |
| 15,001 - 35,000 | 150 |
| 35,001 - 70,000 | 200 |
| 70,001 - 100,000 | 250 |
| 100,001 - 400,000 | 250 |
The business overdraft service charges a 2% access fee for every disbursement and a tiered daily access fee after the 24-hour free period.
Fuliza interest rates - Wrapping up
There you have it. A comprehensive guide about Fuliza interest rates on loans. The interests are lower compared to those offered by other credit institutions in the country. Your limit is revised every time a repayment is made, and you can access higher limits in the future.
DISCLAIMER: This article is not sponsored by any third party. It is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
Tuko.co.ke published an article on how to apply for an M-Pesa Fanikiwa loan instantly on your phone. M-Pesa Fanikiwa is one of the recent additions to mobile money loan services. The service is in the pilot stage, and only a few individuals are eligible to apply. It will be unveiled to a larger audience after the expiry of the three-month trial period.
M-Pesa Fanikiwa allows you to borrow between Kshs 100 and Kshs 10,000 instantly on your phone at an interest rate of 5 percent. The grace period for loan repayment is 30 days. This service works the same way as M-Shwari. Therefore, you must repay your loan before applying for another one. Read this post to learn more about the service.
