M-Shwari: The Power of Saving and Borrowing In the Palm of Your Hand

It is not easy to save. Saving requires financial discipline and the will to focus on the end goal even if the situation is wanting and tempting you to dig into your savings.

Saving is a habit. It is a culture that has to be practiced repeatedly before one can finally hack it. You cannot save what you don’t have. You cannot save without having a plan.

There are four simple rules that govern how one should start to save and sustain the habit, call them the 4Ws and 1H:

• What: What do you want to save?
• Why: Why do you want to save? Have a goal.
• Where: Where do you want to save? In a bank? Via mobile?
• When: When do you want to start saving?
• How: How do you want to save?

Saving is the easiest way of having your way to the table of the wealthy. As Amana Capital puts it, there is no secret to wealth but there is a way to the land of wealth, and the highway is through saving.

A savings culture in the national financial inclusion initiatives will facilitate the integration of digital savings to consumers far from propagating for affordable, flexible and accessible offerings on digital savings accounts.

Kenya prides herself as the leader in the financial inclusion, having been ahead of 20 other countries for more than 10 years, thanks to mobile money platforms such as M-Pesa from Safaricom.

The World Bank, in its late April 2019 report called for equilibrium in innovations and risks claiming it will cater for parts of the population looking to save and gain access to digitally enabled and market-based wealth-building products.

Kenya has made tremendous efforts in pushing for access to digital transactions and payment services and while the result is conspicuous, access to credit, insurance, and investments – the second-generation modes of digital financial inclusion – is still unlimited.

Read:

• Banks Should Incorporate Products Like M-Shwari to Encourage a Savings Culture
• Saving Tips: Splendid Ideas on How to Free up Cash

The M-Shwari Factor

M-Shwari came as a game changer in Kenya’s mobile financial sector. This is a paperless banking service that is offered through M-Pesa.

I know Fuliza has taken off with a bang but to me, M-Shwari remains king with amazing and interesting features for anyone to enjoy.

Through M-Shwari:

• One is able to open and operate an M-Shwari bank account through their mobile phone, via M-Pesa without having to visit the banking hall or fill out any forms.
• One has the ability to move cash in and out of their M-Shwari savings account to their M-Pesa account at no cost.
• One is able to access micro-credit product (loan) of a minimum of 100 shillings instantly on their M-Pesa account charged at 7.5 percent.
• Save for a fixed period of time (Lock Savings Account) and earn an interest of up to 70 percent of the Central Bank Rate.

Unpacking M-Shwari

Deposit

Sometimes you might be having money but do not know where to keep it. You can opt for the M-Shwari Deposit Account that will help you store your money securely for a specific purpose in the future.

To have your money on the M-Shwari Deposit Account, you will enjoy zero minimum balance, no charges levied on the account, no charges for moving money from M-PESA to M-Shwari account and vice versa and, in line with the Banking (Amendment) Act 2016, all deposits on M-Shwari will earn interest of up to 70% of the Central Bank Rate.

Interesting. Right?

Loans

Mwezi uko kona a common phrase among Kenyans that simply means I am broke. When things are tough financially, you need someone to hold your hand in terms of giving you something to hold on. What I am trying to say is, you need a loan.

Getting a loan from friends is not easy. You will actually end up disappointed because many of them will pile you with as many excuses as to why they cannot afford to give you a loan. I know you are thinking of trying one of those apps, wueh! What about their exorbitant interest rates?

Now, mwezi ukiwa kona, you have nothing to worry if you have M-Shwari. They have an M-Shwari Loan Account, a micro-credit product that allows you to borrow in times of need or to complement your finances towards an investment or enterprise.

M-Shwari loan is affordable. A one-time fee of 7.5 percent is levied for each loan and as you continue borrowing, you build your credit history and, in the process, grow your loan limit. You can borrow from as low as 100 shillings to as high as 50,000 shillings.

In order to qualify for a loan, all you need is to be an M-PESA subscriber for 6 months, save on M-Shwari and actively use other Safaricom services such as voice, data, and M-PESA. To inquire how much you can borrow, go to M-Shwari, Loan, check Loan Limit.

Wondering on how you can access the loan from M-Shwari? Relax. Here is how:

• Take your phone
• Access the M-PESA menu.
• Select Loans and Savings.
• Select M-Shwari.
• Select Loan.
• Request Loan.
• Enter amount.
• Enter your M-PESA PIN
• The loan amount will be sent to your M-PESA Account. The loan amount to be paid will be in inclusive of the facility fee.

Lock Savings Account

You need to save. To save, you need a target. Thanks to M-Shwari Lock Savings account, you can now save for a defined purpose for a specified amount of time.

The funds saved on the M-Shwari Lock Savings account will be kept in the account until the maturity date; this maturity date is determined by you upon opening the account and ranges between one and twelve months.

The M-Shwari Lock Savings account is ideal for customers looking for higher interest rates and those wishing to keep money away safely for one to six months.

You must be an M-Shwari customer in order to access the M-Swari Lock Savings account. To join M-Shwari, Go to your M-PESA menu, select “My account” and “Update menu” then go to your M-PESA menu, select Loans, and Savings, M-Shwari, click on activate the account and accept terms and conditions.

In line with the Banking (Amendment) Act 2016, all deposits on the M-Shwari Lock Savings Account will earn interest of 6.65 percent PA being 70 percent of CBR.

If you need to save, deposit cash or take a loan, try M-Shwari.