M-Shwari, a revolutionary mobile banking service offered by Safaricom in partnership with NCBA Bank, has transformed the way Kenyans access loans and savings. One of its most attractive features is the ability to obtain quick loans without collateral. However, many users find themselves wondering how to unlock or increase their M-Shwari loan limit. This article provides a detailed guide on how to maximize your borrowing potential with M-Shwari.
What Is M-Shwari Loan Limits
Before diving into the strategies for unlocking your loan limit, it’s crucial to understand how M-Shwari determines these limits. M-Shwari offers loans ranging from Ksh. 100 to Ksh. 50,000, with the exact amount available to each user based on their creditworthiness and financial behavior. New users typically start with a zero loan limit, which can be increased over time through responsible financial practices.
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Steps to Unlock Your M-Shwari Loan Limit
Activate Your M-Shwari Account
The first step in unlocking your loan limit is ensuring your M-Shwari account is active. If you haven’t already done so, you can activate your account through two methods:
- Using USSD: Dial *234#, navigate to “Loans and Savings,” select “M-Shwari,” and then choose “Activate.”
- Using M-Pesa SIM Toolkit: Open the M-Pesa menu, go to “My Account,” select “Update Customer Menu,” then “Loans and Savings,” choose “M-Shwari,” and activate the account.
Maintain Regular Transactions
M-Shwari evaluates your overall financial behavior, including your M-Pesa usage. Regular transactions such as sending money, paying bills, and making purchases using M-Pesa demonstrate active account usage. This activity helps establish a positive transaction history, which is crucial for increasing your loan limit.
Save Consistently
One of the most effective ways to improve your M-Shwari loan limit is by maintaining a consistent savings habit. Regular deposits into your M-Shwari savings account signal financial responsibility. Even small, frequent deposits are more beneficial than irregular large deposits. Aim to save a portion of your income consistently, as this behavior is heavily weighted in M-Shwari’s loan limit calculations.
Build a Good Credit History
Your repayment history plays a significant role in determining your loan limit. When you take a loan, ensure you repay it on time or before the due date. Consistently meeting your loan obligations demonstrates reliability and increases the likelihood of a higher loan limit. Conversely, defaulting on loans or making late payments can severely impact your credit score and future loan eligibility.
Monitor Your Loan Limit
Regularly check your M-Shwari loan limit to track your progress. You can do this by dialing *234# and selecting “Check Limit” under the Loans section. This will provide you with updates on your current borrowing capacity. Monitoring your limit allows you to see how your financial behaviors are impacting your borrowing potential.
Engage with Customer Service
If you believe you’re eligible for a higher limit but haven’t seen an increase, don’t hesitate to contact M-Shwari customer service. They can provide insights into why your limit hasn’t increased and offer guidance on improving your standing.
Utilize the Lock Savings Account
M-Shwari offers a Lock Savings Account feature that allows you to save for a defined period while earning higher interest rates. Using this feature can improve your overall savings profile and potentially lead to higher loan limits. It demonstrates your commitment to long-term financial planning.
Stay Informed on Policies
M-Shwari periodically updates its policies and features. Stay informed about these changes as they may affect your loan eligibility or limits. Regularly check for updates through official Safaricom channels or the M-Shwari website.
Avoid Early Withdrawals
While it’s tempting to withdraw savings at the first sign of a financial need, frequent early withdrawals can negatively impact your creditworthiness. M-Shwari views consistent savings as a sign of financial stability. Try to maintain your savings for the agreed-upon term whenever possible.
Review Financial Behavior Regularly
Take time to regularly review your overall financial behavior across all M-Pesa and M-Shwari transactions. Look for areas where you can improve, such as increasing your savings rate or reducing unnecessary expenses. This holistic approach to financial management can significantly impact your loan limit over time.
Additional Tips for Maximizing Your M-Shwari Loan Limit
- Diversify Your Financial Activities: Engage with other Safaricom financial products like Fuliza or KCB M-Pesa. Responsible use of these services can positively influence your M-Shwari limit.
- Maintain a Steady Income: Regular deposits into your M-Pesa account, especially from recognizable sources like salary payments, can boost your creditworthiness.
- Use M-Shwari for Bill Payments: Paying bills through M-Shwari demonstrates responsible financial management and regular account usage.
- Gradually Increase Loan Amounts: Start with smaller loans and gradually increase the amount as you build trust with M-Shwari. This progressive approach can lead to higher limits over time.
Conclusion
Unlocking and increasing your M-Shwari loan limit is a process that requires patience, consistency, and responsible financial behavior. By following these steps and maintaining good financial habits, you can effectively enhance your creditworthiness and access higher loan limits over time. Remember, M-Shwari’s system is designed to reward responsible borrowers, so focus on building a positive financial profile through regular savings, timely loan repayments, and active account usage. With persistence and smart financial management, you can unlock the full potential of M-Shwari’s loan services and achieve greater financial flexibility.