Equity Fuliza Loan (Boostika Loan) | Equity Bank Overdraft

Equity Fuliza Loan – In a strategic move to cater to the evolving financial needs of its customers, Equity Bank Kenya Limited has introduced a game-changing unsecured facility known as Boostika. This innovative offering allows customers to access overdrafts of up to Sh100,000, empowering them to effortlessly complete various transactions, from shopping to sending money and even purchasing airtime. With Boostika, Equity Bank is stepping up its competition against Safaricom’s Fuliza and providing its customers with a flexible financial lifeline.

What is Boostika and How Does it Work?

Boostika is designed to address the common challenge of insufficient funds during transactions. It seamlessly integrates into the transaction process, offering customers the option to overdraw their accounts when needed. This means that if you find yourself short of funds while making a payment, sending money, or buying airtime, Boostika steps in to ensure the transaction is completed without any interruptions.

Equity Fuliza Loan Requirements/Eligibility and Loan Limits

To be eligible for Boostika, customers must have active accounts with Equity Bank for at least six months. Once eligible, they can access overdrafts ranging from Sh100 to Sh100,000, based on their loan limits. Customers are also allowed to draw multiple overdrafts, as long as the unpaid balance remains within their approved limits.

Understanding the Cost of Boostika Loan

To make an informed decision about utilizing Equity’s Boostika Loan, it’s essential to grasp the associated costs. Equity Bank applies a transparent fee structure to this financial offering, ensuring customers are well-informed about what to expect when accessing this overdraft facility. Let’s delve deeper into the various charges involved:

Processing Fee

The processing fee, often referred to as the loan application and credit evaluation fee amounts to 5% of the overdraft amount. For example, if a customer taps into the maximum allowed overdraft of Sh100,000, they will incur a processing fee of Sh5,000. This fee is a one-time charge associated with setting up the Boostika Loan.

Interest

Interest on the Boostika Loan is calculated at a rate of 1.5% per month. It’s important to note that this interest accrues monthly on the outstanding balance. Using the Sh100,000 overdraft example, a customer would incur Sh1,500 in interest charges for one month.

Loan Insurance

Equity Bank includes a loan insurance charge, amounting to 1% of the overdraft amount. For the maximum overdraft of Sh100,000, this translates to a loan insurance fee of Sh1,000. This fee provides added security and protection for the borrower.

Excise Duty

An excise duty of 20% is applied to the processing fee. In the case of a Sh100,000 overdraft, this results in an excise duty fee of Sh1,000. Excise duty is a government-imposed tax that is part of the overall cost of the loan.

Total Cost of Credit

To determine the total cost of credit, we add up all the fees associated with the Boostika Loan:

• Processing Fee: Sh5,000
• Interest: Sh1,500
• Loan Insurance: Sh1,000
• Excise Duty: Sh1,000

In total, these fees amount to Sh8,500 for a Sh100,000 overdraft. This means that if a customer fully utilizes the maximum allowed overdraft and repays it within the specified timeframe, they will incur Sh8,500 in fees.

Effective Cost of Credit

The effective cost of credit is a crucial metric to consider. In this case, the effective cost of credit for Boostika Loan is 8.5%. This percentage represents the total fees incurred as a proportion of the loan amount. It’s important to keep in mind that these fees are calculated every month.

Understanding the breakdown of costs associated with Equity’s Boostika Loan empowers customers to make informed financial decisions. Whether you need a financial cushion for unexpected expenses or to seize opportunities, knowing the costs ensures you can manage your finances effectively and utilize this innovative financial tool to your advantage.

How to Repay Equity Boostika Loan

Repaying your Equity Boostika Loan is a straightforward process designed to provide short-term financial relief while ensuring responsible borrowing practices. Here’s what you need to know about repaying your Boostika Loan:

Loan Duration

Boostika loans are specifically designed for short-term financial needs. Customers are expected to repay the overdraft amount within one month from the date of disbursement. This concise repayment period ensures that borrowers can address immediate financial challenges without being locked into a long-term financial commitment.

Timely Repayment

It’s crucial to adhere to the repayment timeline outlined in your Boostika Loan agreement. Penalties or additional fines may arise from failure to comply. Equity Bank encourages borrowers to be responsible and proactive in managing their finances to avoid any unnecessary costs.

Example of Repayment

Let us look at an example to better understand the payback process:

Suppose a customer borrows Sh70,000 through Boostika to bridge a temporary financial gap. After utilizing the overdraft facility for 30 days, they are ready to repay the loan. Here’s how the repayment works:

• Initial Borrowed Amount: Sh70,000
• Total Cost of Credit (including processing fee, interest, loan insurance, and excise duty): Sh5,950 (as previously calculated)
• Total Repayment Amount: Sh75,950

In this scenario, the customer is required to repay a total of Sh75,950 within the stipulated one-month timeframe. Timely repayment not only ensures that you fulfill your financial obligation but also helps you avoid any additional charges or penalties.

Convenience of Repayment

Equity Bank provides various convenient methods for customers to repay their Boostika Loans. These methods may include:

• Mobile Banking: Using the bank’s mobile app to initiate repayments.
• Online Banking: Accessing your account through the bank’s website to make repayments.
• Bank Branches: Visiting a local Equity Bank branch to settle the outstanding loan amount.

Staying Informed

To manage your Boostika Loan effectively, it’s essential to stay informed about your repayment due date and the outstanding loan balance. Equity Bank often sends reminders and statements to help borrowers keep track of their financial commitments.

In conclusion, repaying your Equity Boostika Loan is a manageable process that aligns with the short-term nature of the loan. By adhering to the repayment timeline and staying informed about your financial obligations, you can make the most of this innovative financial tool while ensuring responsible financial management.

Conclusion

Equity Bank’s Boostika is a versatile financial tool that empowers customers to manage their finances more effectively, offering a convenient way to overcome short-term financial gaps. With competitive interest rates and transparent fee structures, Boostika stands as a formidable alternative to similar services in the market, providing individuals with the financial flexibility they need. Whether you’re shopping, sending money, or buying airtime, Boostika is your financial companion in times of need. Explore the possibilities with Boostika from Equity Bank today!