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Fuliza Loan Kenya

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Fuliza Loan Kenya – Are you a Safaricom M-PESA user who sometimes finds themselves a few shillings short during transactions? Fuliza Loan Kenya is designed just for such moments, providing a continuous overdraft service to ensure your M-PESA transactions are seamless, even when your balance is low. See Is Secret Email System Legit?

Overview of Fuliza

Fuliza is a revolutionary mobile overdraft service, which was introduced by Safaricom, Kenya’s leading mobile network operator. This service is the product of a strategic collaboration between Safaricom and two of Kenya’s major financial institutions: KCB (Kenya Commercial Bank) and NCBA (NCBA Group PLC).

Launched in early 2019, Fuliza has been designed to address the common issue of cash flow constraints among Safaricom’s M-PESA users. It allows them to complete their mobile transactions seamlessly, even when their M-PESA wallet balance falls short, by providing an overdraft facility up to an approved limit.

Here’s how the partnership works in providing the Fuliza service:

  1. Safaricom’s Role: As the provider of the M-PESA platform, Safaricom leverages its widespread mobile money infrastructure to offer Fuliza as an integrated feature within the M-PESA ecosystem. This ensures that the service is easily accessible to M-PESA’s extensive customer base.
  2. KCB and NCBA’s Involvement: Both KCB and NCBA bring their banking expertise and financial resources to the table, underpinning the overdraft service with necessary capital and risk management strategies. They are essentially the financial backbone that supports Fuliza’s credit provisions.
  3. Credit Provision: When an M-PESA customer opts into Fuliza and initiates a transaction without sufficient funds, KCB or NCBA provisionally underwrites the transaction by providing the necessary funds, thereby allowing the transaction to go through. The user can later repay the overdraft at their convenience, subject to the terms of service.
  4. Limit Determination: The limit of the overdraft each customer is eligible for is predetermined based on their M-PESA transaction history and other risk assessment criteria established by Safaricom in collaboration with KCB and NCBA.

Fuliza is an example of how mobile network operators and banks can work together to create innovative financial solutions that leverage technology to provide quick, convenient, and reliable services to their customers. It has been well received in the market, filling a critical gap for micro-credit facilities directly from a mobile wallet, making it a notable development in Kenya’s fintech landscape.

Related

Eligibility for Fuliza M-PESA Overdraft Services

To tap into the convenience of Fuliza, you must be:

  • An M-PESA customer registered with a national ID, Kenyan passport, or Military ID. Unfortunately, foreign passports do not qualify.
  • Active on the Safaricom M-PESA line with a record of at least 6 months for a limit allocation.
  • Willing to opt into the service by dialing *334#, selecting ‘Loans and Savings’ > ‘FULIZA’, and then ‘Opt-in’.

The Advantages of Using Fuliza

  • Multiple Uses: Fuliza isn’t a one-time affair. You can request an overdraft multiple times within your allocated limit.
  • Wide Reach: Send money to both registered and unregistered users.
  • Convenience in Payments: Pay bills and buy goods via Lipa Na M-PESA.
  • Airtime Anytime: Purchase airtime for yourself or others, easily through the USSD or M-PESA app.

Growing Your Fuliza Limit

  • Stay Active: The more you engage with Safaricom and M-PESA services and repay your overdrafts on time, the more your limit can grow.
  • Patience is a Virtue: New customers with less than 6 months on the network start with a zero limit, but don’t fret—active usage can change that!

Fuliza’s Cost Structure

Understanding the charges is crucial. Here’s a breakdown:

  • Access Fee: A one-off fee of 1% of the overdraft amount.
  • Maintenance Fee: This daily fee kicks in at midnight after you’ve utilized your Fuliza overdraft.
  • Excise Duty: A 20% duty applies to the access fee.

Fuliza Tariff Guide

Here’s a quick look at the fees you’ll incur at various overdraft bands:

Band (KSh) Tariff (KSh) 20% Excise Duty (KSh) Total Charges (KSh)
0 – 100 0 0 0
101 – 500 2.5 0.5 3
501 – 1000 5 1 6
… … … …
2501 – … 25 5 30

Note: Paying back your overdraft before midnight after taking it out will save you on the maintenance fee.

Step-by-Step on How to Borrow Money on Fuliza

Borrowing money on Fuliza is a straightforward process designed to help you complete your transactions without any hiccups. Whether you need to send money, make a payment, or buy airtime when your M-PESA balance is running low, Fuliza has got you covered. Let’s walk through the steps to access this lifesaver:

Accessing Your Fuliza Overdraft

  1. Initiate the USSD Command: Start by dialing *334# or *234# from your Safaricom mobile line.
  2. Navigate to Loans and Savings: After dialing, a menu will pop up. From the list of options, select ‘Loans and Savings.’
  3. Opt-in to Fuliza: Find ‘FULIZA’ from the subsequent menu and select it. You’ll be prompted to opt into the service.
  4. Accept Terms and Conditions: Read through the terms and conditions of the service carefully. If you agree, proceed to opt in.
  5. Check Your Limit: Once you’ve opted in, you’ll be informed of the overdraft limit available to you. This limit is determined by your usage and repayment history with M-PESA.
  6. Complete Transactions: After opting in, any M-PESA transaction you attempt to make without sufficient funds will automatically trigger a Fuliza overdraft up to your available limit. There’s no need to take any further action; the service works seamlessly when you need it.

Tips for Using Fuliza Effectively

  • Monitor Your Limit: Regularly check your Fuliza limit to stay aware of how much you can borrow at any given time.
  • Repay Promptly: To maintain or grow your overdraft limit, ensure you repay your borrowed amounts on time.
  • Use Sparingly: Remember, Fuliza is an overdraft service with applicable fees. Use it for essential transactions to avoid accumulating high charges.

By following these simple steps, you can access the funds you need when your M-PESA balance isn’t quite enough. Fuliza is designed to keep your financial activities moving without interruption, providing a buffer that helps you manage short-term cash flow challenges with ease.

Remember to keep track of your usage to avoid accumulating debt, and enjoy the convenience that Fuliza brings to your everyday transactions.

How do you use Fuliza * 234?

Using Fuliza with the USSD Code *234# is an effortless process, and it allows you to manage various aspects of your overdraft service. Here is a detailed explanation of how you can utilize this service:

Step-by-Step Guide to Using Fuliza with *234#

  1. Access Fuliza M-PESA: On your phone, dial *234#. This USSD code is your gateway to accessing Fuliza’s features.
  2. Navigate the Menu: After dialing, you’ll be presented with several options. Look for ‘Fuliza M-PESA’ on the menu and select it to proceed.
  3. Explore Fuliza Options: Within the Fuliza M-PESA menu, you will find several options:
    • Check Your Limit: Here, you can see the maximum amount you’re able to borrow at any time.
    • View Your Balance: This shows you how much you’ve already used from your Fuliza limit and what remains.
    • Mini Statement: If you need to review your recent Fuliza transactions, the mini-statement option will provide a brief overview.
    • Opt-Out: Should you decide that you no longer wish to use Fuliza, you can select this option to deactivate the service.
  4. Transact with Ease: Whenever you make an M-PESA transaction that exceeds your available balance, Fuliza automatically steps in (provided you’ve not exceeded your limit). For every transaction where Fuliza is used, you will receive an SMS notification.
  5. Stay Informed: After each transaction where Fuliza is applied, an SMS is sent to your phone. This message contains the most recent Fuliza balance, ensuring you are always up-to-date with your overdraft status.

Additional Tips for Managing Fuliza

  • Regularly Check Your Limit: Your Fuliza limit can change based on your M-PESA transaction history. Regularly checking your limit will keep you informed about how much you can transact.
  • Keep Track of Fees: Fuliza comes with an access fee and a maintenance fee. Keep an eye on these charges to manage your costs effectively.
  • Timely Repayments: Repaying your Fuliza overdraft on time can help improve your limit over time. It also avoids the accumulation of daily maintenance fees.
  • Opt-Out If Necessary: If you no longer need the service or wish to avoid accidental overdrafts, you can use the *234# menu to opt out of Fuliza.

By understanding and utilizing the *234# USSD code, you can fully manage your Fuliza account with confidence and ease. Always remember to use Fuliza responsibly, keeping in mind that it’s a financial commitment that should be managed prudently.

How to increase Fuliza limit from 500 to 5000? 

Increasing your Fuliza limit from Ksh 500 to Ksh 5000 or beyond involves a combination of frequent use, timely repayments, and maintaining a good credit standing. Below are detailed strategies to help you achieve a higher Fuliza limit:

  1. Frequent Transactions with Fuliza: Regularly utilizing Fuliza demonstrates to Safaricom and its partner banks that you are an active user of the service. By consistently engaging with Fuliza for various transactions, you signal a higher dependency and reliability on the service, which can be a key factor in increasing your overdraft limit.
  2. Consistent Use of M-PESA Services: Safaricom evaluates your overall activity with M-PESA services when determining your Fuliza limit. This includes not just Fuliza, but also other transactions such as sending money, paying bills, and purchasing airtime. A higher volume of transactions can lead to a higher Fuliza limit.
  3. Prompt Repayment of Overdrafts: Just as with any credit facility, timely repayment is crucial. By repaying your Fuliza overdrafts on or before the due date, you build trust and a positive repayment history. This responsible financial behavior is often rewarded with a higher overdraft limit.
  4. Maintain a Good Credit Score: Defaulting on any loans, including mobile loans, can lead to a negative listing on your credit report with the Credit Reference Bureau (CRB). A good credit score is essential for increasing your Fuliza limit, as it reflects your creditworthiness. Avoid activities that might lead to a negative CRB listing, such as late payments or defaulting on other loans.
  5. Stay Active on the Safaricom Network: Fuliza limits are also influenced by how active you are on the Safaricom network itself. Regularly using your Safaricom line for calls, data, and M-PESA transactions shows a pattern of continuous usage and contributes positively to the assessment of your limit.

Remember that credit facilities like Fuliza are subject to review, and limits can be adjusted periodically. Adhering to these guidelines will put you in good standing to have your limit increased from Ksh 500 to Ksh 5000 or even higher, depending on your transaction behavior and creditworthiness.

In Summary

Fuliza Loan Kenya is more than just an overdraft facility—it’s a financial safety net for M-PESA users, ensuring that your transactions never skip a beat due to insufficient funds. Remember to manage your overdraft wisely to maintain a healthy financial profile and enjoy the increased limits and benefits that come with responsible usage.

Ready to Fuliza?

Opt in today and experience uninterrupted transactions with Fuliza Loan Kenya. Your next M-PESA transaction doesn’t have to wait!

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