M-Shwari Loan – How to save and borrow money from M-Shwari


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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. With M-Shwari, you are also entitled to affordable emergency loans.

What is the Mshwari?

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.

This is a product for everyone who feels that banking should be hassle-free. No forms to fill in, no branches to visit. Just one click on your phone and you have a savings account!

Now you can get going, Lainisha maisha na M-Shwari.

M-Shwari FAQs

What are the requirements to have an M-Shwari Account?

    To get an M-Shwari account, you need to be:

  • A registered Safaricom Subscriber.
  • A 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 M-Shwari?

To update your Menu

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

(Wait to receive the updated M-PESA menu)

To Opt – in to M-Shwari

Do I need a different PIN to access my M-Shwari account?

No. Your M-PESA PIN is the same PIN that you will use for your M-Shwari account. Always remember PIN YAKO SIRI YAKO.

How do you check your M-Shwari account balance? Note that this is also shown at the end of every SMS after performing a transaction

    On the customer’s M-PESA menu:-

  • Select M-Shwari.
  • Select show balance.
  • Enter PIN.
  • Wait for SMS confirmation with the message.
  • Bank account Balance message for customers without an outstanding loan – {M-PESA Receipt Number} Confirmed. Your M-Shwari Deposit Accountbalance is Kshs***** on {TransactionDate:d} at {TransactionTime:t}.
  • Bank account Balance message for customers with an outstanding loan- {M-PESA Receipt Number} Confirmed. Your M-Shwari Deposit Account balance is Kshs******. Your outstanding loan balance is Kshs**** on {TransactionDate:d} at {TransactionTime:t}

What are the charges on the M-shwari service?

  • There are no ledger fees, no limit on the frequency of withdrawals, no minimum operating balance and no charge on deposits (M-PESA to M-Shwari Account).
  • The standard M-PESA limits apply; however you can deposit as low as ksh.1 in your M-Shwari savings account.
  • Enter the amount you want to send.
  • Enter PIN.
  • Confirm the message displayed “send money to bank Kshs 2000″ then press OK. Sample message: Confirmed. Ksh.XXXX transferred to M-Shwari account on DD/MM/ YY at 00.00pm. M-PESA Balance is KshXXXX, new M-Shwari account balance is KshXXXX

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
  • Sample message: X-HS580 Confirmed. You have transferred Ksh. XXXX from your M-Shwari account on DD/MM/YY at 00:00pm. M-Shwari account Balance is KshXXXX. M-PESA Balance is KshXXXX

What is the minimum amount that you can hold in your M-Shwari account (Minimum account balance)?

The minimum amount that you can keep in your account is Ksh 0 (zero) balance.

Can you send money to people who have an M-Shwari Account, directly to their M-Shwari 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.

Can you access your M-Shwari account through any CBA branch?

No. Your account is only accessible through your mobile phone via the M-PESA menu on your Safaricom line.

What is the maximum you can transfer from M-PESA to M-Shwari and vice versa?

The normal M-PESA limits apply.

Can you send money to your other accounts within CBA directly from your M-Shwari Account?

No. You can transfer money from your M-Shwari account into M-PESA. Inter account bank transfers is not possible on the M-Shwari service.

Will the M-Shwari statements be available on Web self-care and or Retail Shops?

Currently, 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.

Will the M-Shwari service earn Bonga points?

You can earn Bonga Points on M-PESA transactions; currently the M-Shwari service will not earn Bonga points, but this is being considered in the near future.

How do you save and withdraw money on the M-Shwari account?

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.

Sample message:

      Confirmed. Ksh.XXXX transferred to M-Shwari account on DD/MM/ YY at 00.00pm. M-PESA Balance is KshXXXX, new M-Shwari account balance is KshXXXX.

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.

Sample message:

    X-HS580 Confirmed. You have transferred Ksh. XXXX from your M-Shwari account on DD/MM/YY at 00:00pm. M-Shwari account Balance is KshXXXX. M-PESA Balance is KshXXXX’

What is the minimum amount you can move from your M-Shwari into M-PESA?

You can move a minimum of Ksh.1 from your M-Shwari account into your M-PESA account.

How many times can you send to bank (deposit) money from M-PESA into your M-Shwari account?

You can send money to bank as savings as many times as possible at NO charge.

What is the minimum amount that you can send to bank (deposit) as savings?

The minimum amount you can deposit is ksh.1 (one shilling).

How many times can you withdraw money from your M-Shwari account into your M-PESA account?

You can withdraw as many times as you like at NO charge.

Will you be able to access your M-Swari account outside Kenya?

You will be able to transact on your M-PESA and M-Shwari account wherever you can roam and send/receive SMS to M-PESA. However, you will only be able to cash in/cash out your M-PESA balance at M-PESA Agents in Kenya.

What happens if you lose your mobile phone and have an M-Shwari account?

Your money is safe because your M-Shwari account is protected by your M-PESA PIN. Replace your SIM card at any of our Safaricom Retail Centres or agent outlets. Once you activate your M-PESA menu, using your current M-PESA PIN you will be able to access your M-Shwari account.

After a SIM swap, will your M-PESA line pick the M-Shwari account you had on a previous line or do you have to opt-in again?

You do not need to opt-in again, the system will automatically update your M-Shwari account and all the money in your account will be reflected as soon as you reactivate your M-PESA account using your current M-PESA PIN.

If you request for a M-Shwari 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.

If you have multiple M-PESA accounts, can you have multiple M-Shwari accounts?

Yes, it is possible to activate more than one M-Shwari account. Each M-Shwari account is linked to a mobile number. However if you want another M-Shwari loan on another M-PESA line you will be required to first pay the outstanding loan on the M-PESA account from which you borrowed.

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 M-Shwari 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 request for M-Shwari loan?

  • From ‘M-Shwari’ menu, select ‘LOAN’
  • Select ‘Request Loan’
  • Enter Amount
  • Enter PIN
  • Confirm the message displayed for example “request loan Kshs 2000″ then press OK.
  • An initial SMS message will be sent immediately on confirmation of request for loan.
  • A second SMS message is sent on successful or unsuccessful request.

How do you check how much M-Shwari loan you can borrow?

  • Please dial *234*6# you will get a notification asking you if you have read and accepted the terms and conditions.
  • This will also give you information on whether you are eligible for a loan and the loan amount limit that will be awarded to you.

What is the minimum M-shwari loan you can borrow?

The minimum amount you can borrow is Ksh.100 and the maximum amount is dependent on your loan amount limit.

How do you pay for a M-Shwari 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.

What is the M-Shwari loan duration?

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.

Do you get charged interest on your M-Shwari loan?

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.

If you have Kshs 5, 000 in your M-Shwari account, will you get a loan of the equivalent amount?

The loan amount is dependent on your loan amount limit, previous loan repayment behaviour and usage of other Safaricom services such as Voice, DATA and M-PESA.

If you have saved Kshs 5000 in your M-Shwari and have a loan of Kshs 2000 and do not repay within the loan duration (30 days), what happens to the money in your deposit account?

  • 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.

Can you request for a M-Shwri loan immediately you opt-in?

For you to qualify for your initial loan you must deposit money in your savings. The amount you can borrow will depend on your usage of Safaricom Voice and DATA as well as your M-PESA usage.

Can you have more than one M-Shwari loan at a time?

No. You have to repay your outstanding loan first before you can borrow another loan.

Can you pay a M-Swari loan on behalf of another person?

You can send money to their M-PESA account and they can pay the loan.

If you have not paid your M-Shwari loan within 30 days, what will happen?

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.

What happens if you pay in excess of the loan amount?

The outstanding loan balance will be paid off and the extra amount will be moved to your M-Shwari savings account.

If you pay your loan before the due date, will you still be charged the loan facilitation fee of 7.5% on the loan amount?

Yes, the 7.5% is a facilitation fee charged on the cost of processing the loan. Early repayment will increase your future loan limit qualification. Remember your loan limit is dependent on your previous loan repayment behaviour and usage of other Safaricom services such as Voice, DATA and M-PESA.

What are the key advantages of M-Shwari service?

  • M-Shwari is a paperless (mobile centric), 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.

About the Author

Hello, I'm Josphat Gachie, a digital media consultant and the founder / CEO of Softkenya.com. We provide affordable website design and online marketing solutions to small businesses. If you have a limited budget and need a website or a way to advertise your business / product you are at the right place. CALL ME ON 0720573178 or Email me at info@softkenya.com or Visit our website at http://softkenya.com/solutions/