Safaricom has introduced interest-free loans on its M-Pesa platform, that will allow customers to shop for goods worth up to Ksh100,000 and pay later.
The service dubbed Faraja will allow customers to buy goods and services on credit from as low as Ksh20 to a maximum of Ksh100,000 and pay the same amount without any interest.
The service being bankrolled by Equity Bank will be available on a list of selected merchants.
Despite being interest-free, customers will however be required to pay the normal M-pesa transaction charges, and pay the credited amount within 30 days.
“You will only be required to repay the outstanding facility amount as advanced to you by us (in whole or in part) using the designated Paybill number or such other channels as provided by us from time to time,” Safaricom says in a statement on its Website.
Faraja is available to qualifying M-Pesa customers with an active Safaricom line, with credit limits determined by credit viability.
To opt in, customers will be required to dial *799#, and select OPT in.
Unlike overdraft facility Fuliza where customers can send money, Faraja will only be available on Paybill and Till Number options.
How to pay using Faraja
- Dial *799# and select either 1. Buy goods and Services or 2. Paybill.
- For Buy goods, you will be prompted to enter the till number, amount and M-Pesa pin, after which you will receive a notification on the success/failure of your transaction.
- For Paybill, you will be prompted to enter the business number and account number, followed by M-Pesa pin and the corresponding notifications.
- This service requires you to enter your M-Pesa pin at every transaction and where authentication is required.