Safaricom, Kenya’s leading telecommunications provider, has introduced Faraja Loan, a new interest-free loan product designed to offer financial relief to M-Pesa users. This initiative aims to provide quick, accessible, and affordable credit without the burden of high-interest rates.
In this guide, we’ll explore how the Faraja Loan works, eligibility requirements, application steps, repayment methods, and its benefits compared to other Safaricom loan products like Fuliza and M-Shwari.
What is Faraja Loan?
Faraja Loan is a short-term, interest-free credit facility offered by Safaricom in partnership with NCBA Bank. Unlike Fuliza (which charges a daily fee) or M-Shwari (which incurs interest), Faraja offers a 0% interest loan, making it an attractive option for addressing emergency financial needs.
Key Features of Faraja:
✅ Interest-free – No hidden charges or daily fees.
✅ Instant disbursement – Funds are sent directly to your M-Pesa.
✅ Flexible repayment – Pay back at your convenience within the given period.
✅ No paperwork – Entirely mobile-based via M-Pesa.
How to Apply for Faraja Loan
Eligibility Requirements:
- Active M-Pesa user for at least 6 months.
- Consistent M-Pesa transactions (deposits, withdrawals, payments).
- Good repayment history with other Safaricom loans (if applicable).
Application Steps:
- *Dial 334# on your Safaricom line.
- Select “Loans and Savings”.
- Choose “Faraja Loan”.
- Enter the amount you wish to borrow (within your limit).
- Confirm and wait for an M-Pesa confirmation message.
Once approved, the loan amount is sent directly to your M-Pesa account.
Faraja Loan Repayment
Repaying your Faraja is simple and can be done via:
- Automatically – If you receive money in your M-Pesa, the loan is deducted first.
- Manually – Go to M-Pesa, select “Lipa Na M-Pesa”, then “Pay Loan”, and follow prompts.
Repayment Period:
- Typically 30 days, but may vary based on loan amount.
- Late repayment may affect future loan limits.
Faraja Loan Limits and Charges
- Loan Limit: Starts from Ksh 100 up to Ksh 70,000 (based on usage).
- No interest – Unlike Fuliza, which charges 1% daily, Faraja is 0% interest.
- Late fees? No penalties, but late repayment may lower your credit limit.
Faraja vs. Fuliza vs. M-Shwari
| Feature | Faraja Loan | Fuliza | M-Shwari |
|---|---|---|---|
| Interest | 0% | 1% daily | 7.5% – 9% (monthly) |
| Limit | Up to Ksh 70,000 | Up to Ksh 100,000 | Up to Ksh 50,000 |
| Repayment | 30 days | Daily rollover | 30 days |
| Access | *334# | Automatic overdraft | M-Shwari App |
Best for:
- Faraja – Best for interest-free short-term loans.
- Fuliza – Best for emergency overdrafts.
- M-Shwari – Best for larger loans with interest.
Benefits of Faraja Loan
✔ No interest – Save money compared to other loans.
✔ Quick access – Instant cash when needed.
✔ No paperwork – Fully digital application.
✔ Improves credit score – Timely repayment increases future limits.
Frequently Asked Questions (FAQs)
1. Is Faraja really interest-free?
Yes! Unlike Fuliza, Faraja has 0% interest.
2. How do I check my Faraja limit?
Dial *334# > Loans and Savings > Faraja Loan.
3. Can I get a Faraja if I have Fuliza?
Yes, but your total loan limit may be adjusted.
4. What happens if I don’t repay on time?
Your loan limit may decrease, but no penalties will be applied.
Conclusion
Safaricom’s Faraja is a game-changer for Kenyans seeking interest-free, short-term credit. With easy application via M-Pesa and no hidden charges, it’s a great alternative to Fuliza and M-Shwari.
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