Now Kenyans can be allowed to shop for goods up to KSh100,000 and pay later, this is after Safaricom Launched a zero-interest credit service.
Dubbed ‘Faraja’ , this service will allow customers to shop for goods from as low as KSh20 to a maximum of KSh100,000 and pay the same amount at a later date, in a move financial experts say will greatly shake the mobile loans market.
The service will be slightly similar to Lipa Later Service which is currently in the market and will work like a digital credit card where a user will have a credit limit of up to KSh100,000, depending on their credit score, to make purchases against and then repay within a 30-day window.
The service will be bankrolled by Equity Bank which is partnering with Safaricom.
“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 Pay bill number or such other channels as provided by us from time to time,” Safaricom says in a statement on its Website
However, only the normal M-Pesa transaction charges will apply at the point of sale on the product.
M-Pesa customers who have a active Safaricom connection qualify for this service, but the credit limits are based on credit viability just like other loan platforms.
M-Pesa customers who have a active Safaricom connection qualify for this service, but the credit limits are based on credit viability just like other loan platforms.
