M-Shwari: The Next Big Thing From Safaricom

M-Shwari is the revolutionary new banking product for M-PESA customers that allows you to save and borrow money through your phone while earning you interest on money saved.  I believe this is the next big thing that is going to revolutionize the way we do our banking. With the ever inquisitive Kenyan attitude of trying out anything new, M-shwari has already recorded 640,000 users within 3 Weeks of launch! With M-Shwari, you are also entitled to affordable emergency loans. This product will most definitely replace your Shylock,  the access to emergency loans payable within 30 days without security is more appealing to Kenyans, especially in this high interest rates regime.

M-Shwari is a paperless banking service offered through M-PESA. It will;

• Enable you open and operate an M-Shwari bank account through your mobile phone, via M-PESA, without having to visit banks or fill out any forms.
• Provide you the ability to move money in and out of your M-Shwari savings account to your M-PESA account at no charge.
• Give you an opportunity to save as little as Ksh.1 and earn interest on your saving balance. This cash is moved into the savings account via M-PESA.
• Enable you to access micro credit product (loan) of a minimum of Ksh.100 any time and receive your loan instantly on your M-PESA account.
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What are the requirements to have an M-Shwari Account?

• Be registered Safaricom Subscriber.
• Be registered Safaricom M-PESA customer.
• Have an active Safaricom M-PESA account/line.
• You need to hold any of the following identification documents; Kenya National Identification Document (ID); Kenyan Passport Document ; Alien ID (resident Permit) registered by the Government of Kenya.

How do you as an Existing M-PESA Customer opt in/activate your line into the service?

• Go to the Safaricom menu on the phone.
• Select “M-PESA”.
• Go to “My account”.
• Select “Update Menu”
• Enter M-PESA PIN

To Opt – in to M-Shwari

• Go to M-PESA Menu.
• Select M-Shwari.
• A message will appear requesting you to read and accept the Terms & Conditions.
• After accepting the terms; an SMS will be sent informing you that you are now activated on the M-Shwari service.

How do you check your M-Shwari account balance? This is shown at the end of every SMS after performing a transaction or 

On the customer’s M-PESA menu:-
• Select M-Shwari.
• Select show balance.
• Enter PIN.
• Wait for SMS confirmation with the message.

Withdraw from M-Shwari Account

• Go to ‘M-PESA’ menu and select ‘M-Shwari
• Select ‘Withdraw from bank’
• Enter Amount
• Enter PIN
• Confirm these details then press OK, and wait for acconfirmation text

Other features of M-Shwari

• It will use same PIN as your M-PESA Account
• You cannot move money from your M-Shwari account directly into another person’s M-Shwari account. However, you can transfer money from your M-PESA into their M-PESA account.
• Your account is only accessible through your mobile phone via the M-PESA menu on your Safaricom line, You can’t access it via CBA Branches
• The normal M-PESA limits apply on amounts that can be transfered per day via this service
• You can transfer money from your M-Shwari account into M-PESA. Inter account bank transfers is not possible on the M-Shwari service.
• You can get 5 recently completed transactions through your mini statement. You can also request printout statements from all Safaricom retail centers. You can also view the M-Shwari transactions from the M-PESA statement available on web self-care.
• You can move a minimum of Ksh.1 from your M-Shwari account into your M-PESA account
• You can send money to bank as savings as many times as possible at NO charge.
• The minimum amount you can deposit is ksh.1 (one shilling).
• You can withdraw as many times as you like at NO charge.
• Your money is safe because your M-Shwari account is protected by your M-PESA PIN. In case you lose your SIM-card Replace it and once you activate your M-PESA menu, using your current M-PESA PIN you will be able to access your M-Shwari account.
• The loan is payable within 30 days. However, you can repay the loan before the due date and borrow again. If you pay the loan in less than 30 days your loan limit qualification will increase.
• The M-Shwari loan DOES NOT attract any interest. The 7.5% charged is a loan facilitation fee payable only once for each loan taken.
• The loan amount that one qualifies to borrow dependent on ones loan amount limit, previous loan repayment behaviour and usage of other Safaricom services such as Voice, DATA and M-PESA.
• The minimum amount you can borrow is Ksh.100 and the maximum amount is dependent on your loan amount limit.
• When you borrow the Ksh 2,000, the money in your savings account will be frozen to the loan amount and the loan fee (loan amount Ksh 2,000 loan plus a facilitation fee of Ksh 150). You will only be able to access any balance above the frozen amount. The frozen amount will be accessible once you pay the loan. However you can continue to deposit money. Note: During the period the frozen savings will continue to earn interest which will be paid into your M-Shwari at the end of calendar quarter.
• If you don’t pay your loan within the 30 days period. your loan repayment period will be extended for an additional 30 days and you will be charged an additional 7.5% facilitation fee on your outstanding loan balance.
• If you pay your loan before due date, the 7.5% is a facilitation fee charged on the cost of processing the loan. Early repayment will increase your future loan limit qualification

Deposit to M-Shwari Account

• Go to ‘M-PESA’ menu and select ‘M-Shwari.
• Select ‘Send to Bank.
• Enter PIN.
• Confirm the message displayed “send money to bank Kshs 2000” then press OK.

Withdraw from M-Shwari Account

• Go to ‘M-PESA’ menu and select ‘M-Shwari
• Select ‘Withdraw from bank’
• Enter Amount
• Enter PIN
• Confirm these details then press OK
• Wait for a confirmation SMS message.

If you request for a loan of Kshs 1,000 how much will you receive and how much will you pay back?

You will receive the full loan amount requested if you qualify. You will however be required to pay back Kshs 1,075 within 30 days because each loan attracts a 7.5% facilitation fee.

What benefits do you get when you save your money on the M-Shwari service?

• You will be paid interest paid on your savings balance (Interest will be calculated daily but paid out at the end of each calendar quarter).
• The product offering will have tiered savings amounts as below subject to KYC validation.

Savings amount Interest P/A
>>KES 1 – 10,000 2%
>>KES 10,001- 20,000 3%
>>KES 20,001 – 50,000 4%
>>KES > 50,001- 5%

How do you qualify for a loan?
In order to qualify for a loan you will have to be an active M-PESA user for at least 6 months, save regularly on M-Shwari account and continuously use other Safaricom services such as Voice, DATA and M-PESA.

How do you check how much you can borrow? Dial *234*6# you will get a notification asking you if you have read and accepted the terms and conditions.

How to pay back the Loan

• From ‘M-Shwari’ menu, select ‘LOAN’
• Select ‘Pay Loan’
• Enter Amount
• Enter PIN
• Confirm the message displayed for example “pay loan Kshs 2000” then press OK.
• A SMS message is sent on successful or unsuccessful request.

The key advantages of M-Shwari service?

• M-Shwari is a paperless , safe and fast service that allows you to save; borrow through your phone.
• M-Shwari has competitive interest rates on savings.
• Interest is calculated daily and paid out at the end of each calendar quarter.
• There is no minimum balance on M-Shwari.
• There are no ledger fees.
• There are no withdrawal charges in moving money between M-Shwari account and M-PESA.

With all this benefits, i hope you already have opened an M-Shwari Account.