Fuliza Loan New Terms and Conditions That Wil Affect Over 2 million Customers
Safaricom can now grasp a subscriber’s M-Shwari and KCB M-Pesa accounts as a guarantee for any outstanding Fuliza loans.
According to statistical reports, Kenyans borrowed approximately KSh 220.38 billion between January and June 2021.
These are some of the firm’s updated terms and conditions for the overdraft service that grants the firm legality to use the funds held in these accounts to repay Fuliza loans.
The move will be effective on November 14, 2021, according to the firm’s overdraft terms and is expected to cut the rate of loan defaults.
The new terms will also apply to mobile saving accounts that Safaricom holds with services providers.
However, the new terms also have introduced an interest rate of 1.083% on Fuliza compared to the service fee charged before on the same amount.
Part of the requirements stated that before you apply for the loan you must give or agree to the terms that KCB and NCBA banks are entitled to restrict or bar you from accessing the money in your account as per their discretions.
NCBA Group and the Kenya Commercial Bank (KCB) Group have agreed with the terms and caution against giving any notice before withholding or recovering the outstanding loans.
Denis Mbuvi, a Safaricom communication officer said that new Fuliza terms if implemented, may see offered together with other M-Pesa products.
He further said that KCB and NCBA as licensed by the Central Bank of Kenya (CBK) and therefore the lien clause which is standard for banking products in the current terms will offer fuliza as its financial service.
The new terms and conditions which are in the implementation process have been brought at a time when the popularity of fuliza service is continuing to grow.
Kenyans borrowed KSh 1.2 billion daily on Fuliza in the last six months ending in June 2021 according to the report on August 31.
In the first six months of the year 2021, Kenyans borrowed KSh 220.38 billion an increase of KSh 54 billion compared to a similar period in 2020.