Fuliza M-Pesa, an innovative overdraft service by Safaricom, has become an integral part of financial flexibility in Kenya’s mobile banking landscape. This comprehensive guide delves into the nuances of Fuliza M-Pesa, offering detailed insights into its operation, fees, limits, and responsible usage.
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Table of Contents
Introduction
Fuliza M-Pesa, operated by Safaricom, allows customers to complete M-PESA transactions even when they lack sufficient funds. This service seamlessly integrates with M-PESA, providing ongoing support whenever an account dips below zero, within an assigned limit​​.
Understanding Fuliza and Its Eligibility
To access Fuliza, you must be an M-PESA registered user with a valid Kenyan ID, military ID, or passport. Not all registrants are immediately eligible for a loan limit upon activation, and those registered with a foreign passport cannot opt into Fuliza. Upon successful activation, Safaricom assigns a limit dictating the maximum overdraft you can access​​.
How to Opt Into Fuliza
Opting into Fuliza is straightforward. Dial *334# on your Safaricom mobile phone, navigate to ‘Loans and Savings,’ select ‘FULIZA,’ and follow the prompts. The M-PESA App also offers an option to opt in​​.
Fuliza Charges Overview
Fuliza charges include a one-time 1% access fee on the borrowed amount and a daily maintenance fee starting at midnight after borrowing. This fee is based on the outstanding balance and is charged daily until repayment. Additionally, a 20% excise duty applies to the access fee​​.
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Detailed Fee Structure
The fees are proportional to the borrowed amount. For instance, borrowing between KES 101 and KES 500 incurs a fee of KES 3 plus a 20% excise duty, totaling KES 3.6. The highest bracket, KES 2501 to KES 70000, attracts a fee of KES 25 plus a 20% excise duty, totaling KES 30​​.
Withdrawal Charges and Limits
Fuliza users can now withdraw cash from their limit. For example, with a Fuliza limit of KES 500, you can withdraw up to KES 470 with a transaction fee of KES 27. The Fuliza limit is dynamic and adjusts based on usage and timely repayment​​.
Fuliza Loan Limits
The maximum loan limit with Fuliza is KES 70,000. This limit evolves based on M-PESA and Fuliza usage patterns. Regular and responsible usage and timely repayments can increase your limit. The initial limit varies based on activity on the Safaricom network​​.
Checking and Increasing Your Fuliza Limit
Check your current Fuliza limit by dialing *234# and selecting ‘Fuliza M-PESA.’ Regular use of M-PESA services and prompt repayment of overdrafts enhance your creditworthiness and may lead to a higher limit​​.
Responsible Use of Fuliza
Fuliza should be used as a short-term solution for cash flow gaps, not as a primary funding source. Over-reliance can lead to debt, so evaluate the necessity of each transaction​​.
Avoiding Transaction Charges
To minimize charges, take advantage of merchants and businesses that cover M-PESA fees. Also, keep an eye on Safaricom promotions for free or discounted transactions. A higher balance in your M-PESA account may also qualify you for reduced transaction fees​​.
In conclusion, Fuliza M-Pesa offers significant benefits for managing cash flow in Kenya’s dynamic financial landscape. By understanding and adhering to its fee structure, limits, and responsible usage, users can effectively leverage this service for their financial needs.
