M-Shwari Loans: Registration, Requirements, Loan Amounts, Interest Rates and Application Process

Learn everything you need about M-Shwari: a revolutionary mobile-centric banking solution offering micro-savings and micro-loans in Kenya.

Aug 27, 2023 - 12:42
M-Shwari Loans: Registration, Requirements, Loan Amounts, Interest Rates and Application Process
M-Shwari Loans: Registration, Requirements, Loan Amounts, Interest Rates and Application Process

Are you a Kenyan looking for a convenient and accessible way to save money and borrow funds when needed? Look no further than M-Shwari, a revolutionary banking product brought to you by the collaboration of Safaricom and NCBA. This comprehensive guide will delve into all aspects of M-Shwari, from its inception to how it works, its benefits, and the steps to register and apply for loans.

Key Takeaways from the Article:

  1. M-Shwari offers revolutionary banking services through mobile phones.
  2. The benefits of M-Shwari include convenience, paperless transactions, competitive interest rates, and access to credit facilities.
  3. M-Shwari offers a Deposit Account for savings and a Loan Account for borrowing.
  4. Loan eligibility requires an M-PESA subscription, active Safaricom service usage, and savings with M-Shwari.
  5. Increasing loan limits involves using Safaricom services, regular savings, and timely repayments.
  6. Applying for an M-Shwari loan is straightforward through the M-PESA menu.

Introduction to M-Shwari

M-Shwari, derived from the Swahili word meaning "to make something better or good," is a groundbreaking financial solution designed to transform the lives of millions of Kenyans. Developed by NCBA and Safaricom, M-Shwari is a mobile-centric banking service accessible exclusively through your mobile phone, eliminating the need for physical visits to a bank or cumbersome paperwork. As long as you are registered on M-Pesa, you can enjoy the convenience and advantages M-Shwari brings to your financial life.

What M-Shwari Offers

M-Shwari is more than just a mobile banking service; it's a suite of banking products designed to enhance the M-PESA experience. With M-Shwari, you gain access to both Deposit and Loan products that are convenient, reliable, and cost-effective, allowing you to save and borrow money seamlessly.

Deposit Product

M-Shwari Deposit Account is a micro-savings product designed to help you securely store funds for various purposes, whether for a specific goal or unexpected emergencies. The features of this account include:

  • No minimum balance requirement
  • No charges on the account
  • Free movement of funds between M-PESA and M-Shwari
  • A generous interest rate of 7.35% p.a. (70% of CBR) by the Banking (Amendment) Act 2016

Loan Product

The M-Shwari Loan Account is a micro-credit offering that provides quick access to funds for various needs. To qualify for a loan, you must be an M-PESA subscriber for at least six months, save on M-Shwari, and actively use other Safaricom services such as voice, data, and M-PESA. Key features of the loan product include:

  • Loan amounts ranging from KSH 100 to KSH 50,000
  • A one-time facilitation fee of 7.5% of the loan amount
  • Building your credit history through timely repayments
  • Loan repayment options through M-PESA or directly from the M-Shwari account

M-Shwari Interest Rates

M-Shwari offers competitive interest rates that make saving and borrowing even more appealing. The interest rates are as follows:

  • Savings Interest Rates:
    • KSHS 1 – 20,000: 3% p.a.
    • KSHS 20,001 – 50,000: 4% p.a.
    • KSHS 50,001: 5% p.a.
  • Lock Savings Interest Rates:
    • KSHS 1 – 20,000: 3% p.a.
    • KSHS 20,001 – 50,000: 5% p.a.
    • KSHS 50,001: 6% p.a.

How to Register for M-Shwari

How to Register for M-Shwari

Registering for M-Shwari is a straightforward process that allows you to unlock the world of mobile-centric banking. Here's how you can get started:

  1. Go to your Safaricom menu.
  2. Select M-PESA.
  3. Choose the "Activate" option.

Upon completing these steps, you will receive a new menu on your line and a link to read and accept the M-Shwari terms and conditions. Once accepted, you will receive a confirmation SMS, and the service will be activated on your line.

Applying for M-Shwari Loans

Gaining access to loans through M-Shwari is quick and hassle-free. Follow these steps to apply for an M-Shwari loan:

  1. Access the M-PESA menu.
  2. Select Loans and Savings.
  3. Choose M-Shwari.
  4. Select Loan.
  5. Request the desired loan amount.
  6. Enter your M-PESA PIN.

The approved loan amount will be instantly credited to your M-PESA account, ready for use. Remember that prompt repayments will enhance your creditworthiness and could lead to an increased loan limit.

Benefits of M-Shwari

M-Shwari offers its users many benefits, making it an attractive option for both savings and borrowing needs. Some of the key advantages include:

  • Convenience: Transact from anywhere at any time using your mobile phone.
  • Cost-effectiveness: Enjoy competitive interest rates and minimal charges.
  • No minimum balance: No need to worry about maintaining a specific balance.
  • Paperless transactions: Carry out transactions without the need for paperwork.
  • Access to credit: Quick and easy access to loans for various purposes.
  • Interest earnings: Earn interest on your savings while they are securely stored.

Increasing Your M-Shwari Limit

If you find your M-Shwari limit is currently set at 0, there are steps you can take to enhance your creditworthiness and unlock more significant opportunities for savings and borrowing:

  1. Active usage: Regularly use your Safaricom line for services like M-PESA transactions and data usage.
  2. Regular savings: Make frequent deposits to your M-Shwari account to demonstrate your financial activity.
  3. Timely repayments: Ensure prompt repayment of loans to improve your credit history.
  4. Use a single line: Stick to one line for all your M-PESA and Safaricom activities to build a strong credit profile.
  5. Borrow occasionally: Request loans periodically and repay them on time to enhance your digital footprint.

READ ALSO: M-shwari CRB clearance: Here Is How To Access M-shwari Loans And Clear Yourself From CRB


M-Shwari is a revolutionary banking product that brings convenience, flexibility, and accessibility to your financial life. Whether you're looking to save for your goals or access funds for emergencies, M-Shwari offers a suite of products that cater to your needs. By following the simple registration process and adhering to the tips to enhance your creditworthiness, you can maximize M-Shwari's benefits and secure a brighter financial future. Embrace the power of mobile-centric banking with M-Shwari and take control of your finances with ease.

FAQs About M-Shwari

What is M-Shwari?

 M-Shwari is a mobile-centric banking product that offers micro-savings and micro-loan services through your mobile phone.

How do I register for M-Shwari?

Go to your Safaricom menu, select M-PESA, and activate the service. Accept the terms and conditions to complete the registration.

What are the benefits of M-Shwari? 

M-Shwari offers convenience, paperless transactions, competitive interest rates, and easy access to credit facilities.

How do I apply for an M-Shwari loan?

 Access the M-PESA menu, select Loans and Savings, choose M-Shwari, and then Loan. Request your desired loan amount and enter your M-PESA PIN.

Why is my M-Shwari limit 0?

 Your M-Shwari limit may be 0 due to minimal M-Pesa duration, minimal M-Pesa transactions, lack of M-Shwari savings, and low usage of other Safaricom services.

How can I increase my M-Shwari limit?

 Increase your limit by actively using your Safaricom line, making regular savings, repaying loans promptly, and borrowing occasionally.


The information provided in this article is based on available sources and is intended for informational purposes only. Users are advised to verify details with the official M-Shwari platform and financial experts before making financial decisions. The article does not constitute financial advice.

Remember, M-Shwari is a powerful tool for enhancing your financial journey. By using its services wisely and responsibly, you can achieve your savings and borrowing goals while enjoying the convenience of mobile banking.

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Joseph Richard Joseph is a graduate of Mathematics and Computer Science (Applied Option). With expertise in Technology and Finance, he brings his knowledge to the field, demonstrating an authoritative understanding of these interrelated areas. Joseph is pursuing a Master's in Software Engineering, further expanding his skill set.