Safaricom teamed up with KCB Bank Kenya to introduce an incredible service dubbed Fuliza ya Biashara. This partnership aims to provide a lifeline to business owners who find themselves in a tight spot when their Mpesa Business tills have insufficient funds to complete a transaction or reach zero.
The introduction of Fuliza ya Biashara has the potential to revolutionize small businesses by offering entrepreneurs the financial flexibility they need to handle urgent transactions or meet various business demands. Peter Ndegwa, the Chief Executive Officer (CEO) at Safaricom, highlighted that more than half a million businesses that use till services can now tap into Fuliza ya Biashara and access short-term credit of up to Ksh400,000 to support their business requirements. Isn’t that amazing?
During the launch event, Peter Ndegwa shared, “We launched Lipa Na M-PESA as a way for businesses to conveniently receive cashless payments through their mobile phones, no matter where they are. Now, our strategy goes beyond collecting payments. We are providing business owners with tools to manage and grow their businesses.”
Now, let’s dive into how you can make the most of Fuliza ya Biashara. If you’re a business owner with an active Mpesa till number that’s been registered for over six months, you’re eligible to opt-in for this fantastic service. Unfortunately, Pochi la Biashara users won’t be able to enjoy the benefits of this overdraft facility to cover their financial shortfalls.
To sign up for Fuliza ya Biashara, simply follow these steps:
- Dial *234# from your registered Safaricom Mpesa Till number.
- Go to ‘Mpesa Business Till.’
- Select ‘Business Loans.’
- Choose ‘Fuliza ya Biashara.’
- Accept the terms and conditions of using the facility.
- Enter your user ID.
- Enter your user PIN.
Once you’ve successfully registered for Fuliza ya Biashara, you’ll receive a text message indicating your assigned limit. This limit can be used to complete Paybill and Buy Goods and Services transactions in the Lipa na Mpesa category. You can also withdraw funds at Mpesa agent outlets or transfer them to a nominated number.
The beauty of Fuliza ya Biashara is that it’s automatic, and whenever you have insufficient funds, you’ll receive pop-up messages to complete your transactions seamlessly.
Now, let’s talk about the limit you can enjoy with Fuliza ya Biashara. With this service, you can borrow more money than you have in your account, allowing you to overcome day-to-day cash flow challenges on your Lipa na Mpesa transacting Till. The minimum overdraft loan you can avail of is Ksh1,000, and the maximum is an impressive Ksh400,000.
The credit limits are predetermined based on factors such as your past transaction histories and frequency of using other Safaricom and Mpesa services. You can make transactions starting from Ksh1 up to your allocated limit, and as long as you stay within your credit limits, you can borrow as many times as you need.
Remember, you have 30 days to repay the loan, but it’s advisable to pay it back as soon as possible. By doing so, you not only increase your credit viability but also raise your limits. Once you’ve repaid the loan, you’ll have access to a new overdraft, including the repaid amount.
However, it’s crucial to note that failing to repay your Fuliza ya Biashara loan on time can have consequences. Defaulters risk being blacklisted on Credit Reference Bureaus (CRBs) and may be barred from using the service. So, it’s best to stay on top of your repayments.
Speaking of repayments, deductions to repay your Fuliza ya Biashara loan are made after 30 minutes of every hour from the monies sent to your Till. This helps ensure a smooth repayment process for you.
Now, let’s discuss the fees associated with Fuliza ya Biashara. When you borrow a Fuliza ya Biashara loan, you’ll incur a once-off 2% fee, along with daily administrative fees. These daily fees are calculated based on the loaned amount in specified tiers after a 24-hour interest-free period.
Here’s a breakdown of the interest rates for Fuliza ya Biashara
|Loan amount: Ksh1 – Ksh999||Daily maintenance fees: 0 (Free)|
|Loan amount: Ksh1,000 – Ksh2,499||Daily maintenance fees: Ksh12|
|Loan amount: Ksh2,500 – Ksh5,000||Daily maintenance fees: Ksh30|
|Loan amount: Ksh5,001 – Ksh15,000||Daily maintenance fees: Ksh50|
|Loan amount: Ksh15,001 – Ksh35,000||Daily maintenance fees: Ksh150|
|Loan amount: Ksh35,001 – Ksh70,000||Daily maintenance fees: Ksh200|
|Loan amount: Ksh70,001 – Ksh100,000||Daily maintenance fees: Ksh250|
|Loan amount: Ksh100,001 – Ksh400,000||Daily maintenance fees: Ksh250|
If, at any point, you decide that Fuliza ya Biashara is not for you, no worries! Mpesa Business owners who wish to opt out can do so by dialing *234#, selecting M-PESA Business Till, logging their store numbers, and choosing the Business Loans option for Fuliza ya Biashara. Just follow the prompts, and you’ll be all set.
So, there you have it! Fuliza ya Biashara offers a fantastic opportunity for business owners to overcome financial hurdles and take their ventures to new heights. With this partnership between Safaricom PLC and KCB Bank Kenya, the future looks bright for small businesses across the country. If you have any questions or need further assistance, feel free to reach out. Happy transacting!