The Safaricom MPesa unveils an interest free loan for buying goods dubbed Faraja. This has come as relieve to millions of MPesa users as they can now enjoy interest free loans.
Using MPesa Faraja loans, customers can purchase goods worth up to 100,000 and lipa mdogo mdogo without interest accrued.
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Faraja loan grace period
MPesa customers will be required to pay Faraja loan within one month period. Faraja interest free loan will disrupt local lending industry where every mobile app loan, including Safaricom Fuliza will always expect some interest from customer.
Faranja Loan Charges
Safaricom explains that when using Faraja loan you will only be required to pay the normal MPesa transaction charges.
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How to activate MPesa Faraja service
To activate MPesa Faraja loan, you will be required to dial *799#. You will then be prompted to opt in as a way of activating. Once they activate, customers will be allowed to do unlimited transactions until they reach their credit limit.
Customers who take this free loan will be allowed to make partial repayments before due date. These partial repayments will boost your credit worthiness in Faraja loans.
“To make repayments, you will be required to dial *799#. Your transactions will be displayed, you can pay for only one transaction at a time. Choose the one you want to pay for then press send”, states Safaricom.
You will be required to enter your MPesa PIN and press send while paying from your MPesa. A screen will appear for you to accept or decline. Once accept, a notification will be sent to you confirming the transaction details, amount paid and new credit balance. This process can as well be done on the Safaricom app.
“ For a 30 day loan cycle, the loan is due on 30th day and likewise, the 7-day loan is due on the 7th day after the loan is given ,” states Safaricom.