Fuliza is a popular overdraft service offered by Safaricom in Kenya, allowing users to complete transactions even when they have insufficient funds in their M-Pesa accounts. Here’s how it works and what fees to expect.
How Fuliza Works
1. Eligibility
- M-Pesa Users: You must be a registered M-Pesa user with a good transaction history.
- Opt-in Required: Users need to opt-in to access Fuliza.
2. Usage
- Transaction Coverage: Fuliza can be used for various M-Pesa transactions, including payments, purchases, and money transfers.
- Automatic Activation: When attempting a transaction that exceeds your available balance, Fuliza automatically covers the shortfall.
3. Repayment
- Automatic Deduction: Once you receive funds in your M-Pesa account, the borrowed amount is automatically deducted along with any applicable fees.
- Flexible Limits: The amount you can borrow varies based on your transaction history and repayment behavior.
Fees Associated with Fuliza
1. Service Fees
- Daily Fees: Fuliza charges a daily fee for the amount borrowed. This fee is calculated based on the outstanding balance.
- Fee Structure:
- Up to KSh 1,000: KSh 20 per day
- KSh 1,001 – KSh 2,500: KSh 30 per day
- KSh 2,501 – KSh 5,000: KSh 50 per day
- KSh 5,001 – KSh 70,000: KSh 100 per day
2. Repayment Terms
- No Late Fees: There are no late fees, but the daily fee accrues until the loan is repaid.
- Maximum Borrowing Amount: The limit is based on your profile and history, up to KSh 70,000.
3. Service Availability
- 24/7 Access: Fuliza is available at any time, allowing you to complete transactions whenever needed.
Conclusion
Fuliza is a convenient financial service for M-Pesa users, providing flexibility and ease in managing transactions. Understanding the fees and repayment terms is crucial to avoid unexpected charges. Always ensure you borrow responsibly and repay promptly to maintain a good borrowing limit.
