Are you wondering how to pay your Mshwari loan quickly and easily? You’ve come to the right place. M-Shwari is a mobile loan and savings product offered by Safaricom in partnership with NCBA (formerly CBA).
It gives you access to instant credit and a savings platform straight from your phone via M-PESA. With no paperwork or bank visits required, M-Shwari is fast, convenient, and trusted by millions of Kenyans.
In this guide, you’ll learn how to activate M-Shwari, apply for a loan, and, most importantly, how to pay your M-Shwari loan correctly to avoid penalties.
Step-by-Step Guide To Pay Your M-Shwari Loan
Repaying your M-Shwari loan is very simple and can be done directly from your phone using the M-PESA menu. It’s important to pay your loan on time to avoid penalties and maintain a good credit history.
How To Repay Your M-Shwari Loan Using Your Phone
Follow these steps to pay your Mshwari loan:
- Go to your M-PESA menu
- Select Loans and Savings
- Choose M-Shwari
- Select Loan
- Choose Pay Loan
- Enter the amount you want to repay
- Input your M-PESA PIN
- Confirm the message shown on your screen and press OK
You will receive an SMS confirming that your payment has been successful. The loan repayment is reflected instantly on your M-Shwari account.
Understanding M-Shwari Loans Before You Apply
Before you take a loan on M-Shwari, it helps to understand how the system works and what you need to qualify. Here are a few key things to know.
How To Qualify And Apply For A Loan
To qualify for an M-Shwari loan:
- You must be a registered Safaricom subscriber
- You need an active M-PESA account
- You should have used M-PESA for at least 6 months
- Save regularly on your M-Shwari account
- Use Safaricom services like calls, SMS, data, and M-PESA often
To apply for a loan:
- Go to M-PESA menu
- Select Loans and Savings
- Choose M-Shwari
- Select Loan then Request Loan
- Enter the loan amount
- Input your M-PESA PIN and confirm
You will receive a message confirming if your request was successful. The loan amount will be deposited in your M-PESA account.
M-Shwari loans have a flat facilitation fee of 7.5%, which is charged once per loan.
What Happens If You Delay Or Default On Your Loan
Paying your M-Shwari loan on time is important to maintain access to credit and avoid penalties.
Penalties For Late Payment
If you do not pay the loan in 30 days:
- Your loan term is extended by another 30 days
- You are charged an extra 7.5% facilitation fee on your remaining balance
If you fail to repay within 120 days, you may be listed on CRB (Credit Reference Bureau). This negative listing can affect your ability to borrow from banks or other digital lenders in future.
Tips To Manage Your M-Shwari Loan
- Only borrow what you can repay comfortably within 30 days
- Try to repay early to improve your credit limit
- Check your loan limit regularly by dialing *243#
- Save on M-Shwari often to increase your chances of higher loan amounts.
