M-PESA Business Loan: Loan Amounts, Charges, Eligibility, Benefits, Requirements, and How to Apply
Learn about M-PESA Business Loans, from eligibility criteria to application processes and repayment procedures.
Are you a business owner looking for quick and hassle-free access to credit? Safaricom's M-PESA Business Loan might be the solution you've been waiting for. In collaboration with Asante, a fintech company specializing in financial services for Lipa Na M-PESA merchants, this loan product offers a range of loan amounts, affordable charges, and numerous benefits tailored to empower businesses. In this comprehensive guide, we'll dive deep into the specifics of M-PESA Business Loans, including eligibility criteria, application processes, loan amounts, charges, and more. Let's embark on this journey to financial empowerment for your Business.
Key Takeaways from the Article
- The M-PESA Business Loan offers businesses flexible loan amounts ranging from Kshs.100 to Ksh.200,000.
- Benefits of the loan include business continuity, accessible credit, network growth, and smooth payments among merchants.
- Eligibility criteria encompass active tills, settlement of funds, and minimum active period on Lipa Na M-PESA.
- The application process involves registration and loan requests through USSD codes.
- Loan charges include access, rollover, and penalty fees, depending on loan duration.
- Timely repayment is essential to avoid additional charges and financial strain.
Loan Amounts
One of the standout features of the M-PESA Business Loan is its flexibility in loan amounts. Businesses can secure loans ranging from Kshs.100 to Ksh.200,000. This tailored approach ensures that businesses of varying scales can access the financial support they need, whether it's to restock inventory, cover operational expenses, or seize growth opportunities.
Benefits that Propel Businesses Forward
The M-PESA Business Loan comes with an array of benefits that contribute to the financial well-being of merchants:
- Business Continuity: The loan serves as a lifeline, keeping merchants' businesses open and operational even during challenging times.
- Accessible Credit: The ease of access to affordable credit empowers merchants to complete transactions, maintaining the flow of business operations seamlessly.
- Network Growth: With financial backing, businesses can expand their networks, reaching new customers and markets.
- Smooth Payments: The loan facilitates seamless transactions among merchants, promoting a thriving ecosystem.
Eligibility Criteria: Opening the Doors to Opportunities
To qualify for the M-PESA Business Loan, Lipa Na M-PESA Buy Goods Merchants need to meet specific eligibility criteria:
- Merchants must settle funds collected in their M-PESA tills to their MPESA account and activate the Business till functionality.
- The Business till must have been active on Lipa Na M-PESA for at least 3 months (90 Days).
- Merchants can use their nominated numbers to access the service.
- Each merchant can apply for one loan or till per store.
- Active tills are the ones eligible for loan applications.
Navigating the Application Process
Accessing the M-PESA Business Loan is a straightforward process that starts with registration:
- Dial *234# from the nominated number.
- Select M-PESA Business Till.
- Enter your store number or HO.
- Choose Business Loans.
- Select Access Loans from partners.
- Choose the partnering financier.
- Accept the Terms and Conditions.
- Provide your operator ID and PIN.
Once registered, you can explore the loan options:
- Dial *234#.
- Select M-PESA Business Till.
- Enter your store number or HO.
- Select Business Loans.
- Choose Access Loans from partners.
- Select the partner.
- Request the desired loan amount.
- Choose a loan repayment period.
- Enter your operator ID and PIN.
Understanding charges
It's essential to comprehend the charges associated with the M-PESA Business Loan:
- Access Fee: A one-time fee charged upon taking the loan.
- Roll Over Fee: Applied to outstanding balances if the loan is not repaid by the due date, with a grace period provided.
- Penalty Fee: A daily penalty fee is charged on the outstanding balance if the loan remains unpaid after the rollover period.
The charges vary based on loan duration and type:
| Loan Duration | Access Fee | Roll Over Fee | Penalty Fee |
|---|---|---|---|
| 1 Day | 0.48% | 0.48% | 0.72% |
| 7 Days | 3.12% | 3% | 0.72% |
| 21 Days | 9.12% | 6% | 0.72% |
Ensuring Timely Repayments
Repaying the M-PESA Business Loan is crucial to avoid additional charges. Follow these steps:
- Dial *234#.
- Select M-PESA Business Till.
- Enter your store number or HO.
- Choose Business Loans.
- Select Access Loans from partners.
- Pick the partner.
- Opt for Pay Loan.
- Choose Full Payment or Partial Payment.
- Enter the amount (for partial payment).
- Provide your operator ID and PIN.
Facing Challenges and Finding Solutions
In case of missed repayments, the following apply:
- Roll Over Fee: Applied to outstanding balances during the grace period.
- Penalty Fee: A daily penalty fee for unpaid balances beyond the rollover period.
Clearing Negative Listings and Improving Credit
Understanding Credit Reference Bureau (CRB) scores and how to improve them is essential:
- CRB Score/Rating: It reflects your credit history, including timely repayments and defaults.
- Clearing Negative Listings: Fully repay defaulted loans and apply for a clearance certificate from CRB. Improvement requires consistent, on-time payments.
Resolving Repayment Issues
If repayment issues arise, contact Safaricom Customer Care Line 100 for assistance. They can initiate a waiver request, ensuring fairness and accuracy in fees.
READ ALSO: M-PESA Western Union: Registration, Charges, Sending and Receiving Money
Conclusion
The M-PESA Business Loan is a beacon of financial support for Lipa Na M-PESA Buy Goods Partners, offering accessible credit and a lifeline for businesses to thrive. By understanding the loan process, eligibility criteria, charges, repayment procedures, and strategies for improving credit, merchants can make informed financial decisions that fuel growth and prosperity.
FAQs About M-PESA Business Loan
Q: Who can apply for the M-PESA Business Loan?
A: Lipa Na M-PESA Buy Goods Merchants with active tills and eligible criteria can apply.
Q: How can I access the M-PESA Business Loan?
A: Dial *234#, follow the prompts, and select the desired loan amount and repayment period.
Q: What are the benefits of the M-PESA Business Loan?
A: Benefits include business continuity, accessible credit, network growth, and seamless merchant payments.
Q: What charges are associated with the M-PESA Business Loan?
A: Charges include access fees, rollover fees, and penalty fees, varying based on loan duration.
Q: How can I repay the M-PESA Business Loan?
A: Dial *234#, select M-PESA Business Till and choose to pay the loan, following the prompts.
Q: What happens if I miss loan repayments?
A: Rollover and penalty fees are applied to outstanding balances, with grace periods and daily penalties.
Disclaimer
The information provided in this article is intended to guide readers on the M-PESA Business Loan. However, readers are encouraged to verify details with relevant financial institutions and Safaricom for the most accurate and up-to-date information. The article does not substitute professional financial advice.
What's Your Reaction?
